Egypt : AIIB's investment portfolio in Egypt exceeds $1B

<CAIRO - 14 April 2022: Egypt’s total portfolio of cooperation with the Asian Infrastructure Investment Bank (AIIB) has exceeded $1 billion since the start of joint cooperation with the bank in 2016, according to Minister of Finance Mohamd Maait.

Maait elaborated Thursday that Egypt is one of the founding countries of the bank, and the largest shareholder from the African continent.

This came during Maait’s meeting with Ludger Schuknecht, Vice-President and Secretary-General of the Asian Infrastructure Investment Bank.

“Egypt has a strong partnership with the Asian Bank through the implementation of many development projects, especially in infrastructure, including: the Benban Solar Energy Plant worth $210 million, sustainable sanitation for rural areas with $300 million with the World Bank, and a credit line for the National Bank for financing small and medium projects, in addition to a $360 million development policy support financing,” the minister noted.

He affirmed that the state is keen to enhance cooperation with international development partners to transition to a green economy, by creating a stimulating environment for local and foreign investment in infrastructure projects that witnessed an unprecedented boom during the last period in partnership with the private sector, as it is the locomotive of job-rich economic growth; in order to achieve the vision of “Egypt 2030” and the goals of comprehensive and sustainable development.

The minister added that the state is looking forward to strengthening cooperation with the Asian Infrastructure Investment Bank to transform into a more climate-resilient smart infrastructure, by expanding the implementation of green projects that are environmentally friendly, in addition to joint coordination in the context of preparations for hosting the climate summit in Egypt, in a manner that guarantees the success in reaching serious initiatives that contribute to maximizing international efforts to combat climate change.

The minister pointed out that Egypt had made great strides towards developing infrastructure and expanding green finance, as it had taken the lead in issuing green bonds in the Middle East and North Africa.

“We are also looking forward to a greater African presence for the Asian Infrastructure Investment Bank, by consolidating the partnership with Egypt, which enjoys a vital geographic location that connects the three continents of the world: Asia, Africa and Europe, which qualifies it to play a strategic role in ensuring infrastructure. good and sustainable, and mobilizing the financial resources of the private sector to motivate it to play its role in this vital field, in a way that helps achieve comprehensive and sustainable development goals,” Maait stated.

The minister added that Egypt is looking forward to hosting the annual meetings of the board of governors of the Asian Infrastructure Investment Bank during 2023, to advance multilateral cooperation between Asia and Africa, and work together on common development goals, in a manner consistent with the state's efforts in promoting Egyptian investment opportunities, and expanding the role of the Asian Bank in development finance for the private sector.

Ludger Schuknecht, Vice President and Secretary-General of the Asian Infrastructure Investment Bank, stressed the bank's keenness to maximize joint cooperation with the Egyptian side, as part of its role to meet the development needs of the developing country by pumping investments in infrastructure fields to enhance the implementation of the sustainable development goals, as Egypt is a member and a key partner of the Bank, that has the ability to transform into a regional logistics center for transport and energy,

Schuknecht praised the clear vision of the Egyptian government in infrastructure development projects in partnership with the private sector.

He pointed out the keenness of the Asian Infrastructure Investment Bank to joint coordination with the Egyptian side in the framework of the ongoing preparations to host the climate summit, and to provide all possible means of support for the success of this historic event, in a way that contributes to achieving the desired goals to combat climate change.