Finance Minister calls for increasing global financing for developing, African countries

Mohamed Maait, the Minister of Finance, said that Egypt relies greatly on the support of the United States of America for providing the necessary funding for African countries to reduce the negative effects of climate change. This is especially important in light of the global economy suffering from a severe global inflationary wave, resulting from COVID-19 and the war in Europe. This has led to an increase in the prices of basic commodities and fuel; as a result of supply chain disruptions and increasing funding costs.

Maait met on Monday with Alexia Latortue, Assistant Secretary of the Treasury for International Trade and Development, and Daniel Rubinstein, the Chargé d’Affaires of the US in Cairo, on the sidelines of their participation in the COP27 in Sharm El-Sheikh.

Maait referred to the strength and depth of economic relations that bring together the two countries in various fields, and how they witnessed remarkable progress during the past few years.

He added that Egypt is keen to encourage the local and foreign private sector, due to its belief in its pivotal role in the sustainable development process, providing major investment opportunities, especially in the field of green hydrogen, electricity generation from new and renewable energy, water desalination, sustainable agriculture, energy and clean transportation. This contributes to the expansion of the green economy.

Maait stressed the importance of further boosting the role of global multilateral development banks in providing financing with facilities to developing and African countries in light of the global economic crisis, especially that the soft green finance available so far still does not meet the great development needs of African countries.

He added that Egypt is looking forward to a greater role for the global multilateral development banks, as the guarantees were not used sufficiently. This, during the past ten years, contributed to reducing the cost of financing in countries by 3.3%. This creates demand for expanding these guarantees, as well as linking them to environmental and social goals, and economic reforms, in order to achieve the lowest cost of green borrowing, in addition to mobilizing sources of private and mixed finance, and prolonging maturities, with a higher credit rating for issuance.

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