The President of the Arab Republic of Egypt Abdel Fattah El-Sisi has commended the work of the African Development Bank Group in helping the continent to deal with the impact of global economic challenges.
The Egyptian leader on Tuesday received the President of the African Development Bank Group Dr Akinwumi Adesina in the capital Cairo. Dr Adesina was accompanied by the bank’s Chief Economist and Vice President Professor Kevin Urama and the Secretary General Professor Vincent Nmehielle. Others at the meeting included the Governor of the Central Bank of Egypt Hassan Abdallah, Deputy Governor for Monetary Stability Rami Aboul Naja and Deputy Governor for External Affairs Mannullah Farid.
Adesina was in Egypt to familiarise himself with preparations ahead of the Bank Group’s 2023 Annual Meetings scheduled for 22-26 May in the resort city of Sharm El-Sheikh. Up to 13 heads of state and government are expected to join the bank’s Governors, executive directors, development partners and management at the meetings to discuss Mobilizing Private Sector Financing for Climate and Green Growth in Africa.
President El-Sisi said Egypt looked forward to continuing and increasing cooperation with the bank in various development sectors.
The bank is closely working with Egypt to mobilise international climate financing to address the country’s climate challenges, building resilience of vulnerable systems and promoting sustainable development. The Just Green Transition (JGT) initiative has a pipeline of investment-ready projects worth $14.8 billion to tackle the Nexus on Water, Food and Energy.
The African Development Bank was asked to lead mobilisation of financing for the water pillar projects. Dr Adesina said, “The bank has mobilised $2.3 billion exceeding the initial target of $1.4 billion.” In addition, the bank is supporting water desalination projects in the country.
The African Development Bank Group head praised Egypt’s bold efforts to tap into private sector finance for green growth initiatives.
The government of Egypt plans to issue a green bond in the Chinese capital markets by end of June this year. The Green Panda Bond with a face value of $500 million will be issued in Chinese Renminbi.
Dr Adesina said, “This will be the first time for an African country to issue a bond in the Chinese capital markets.”
The bank’s Board of Directors will in the next couple of months discuss Egypt’s request to provide a partial credit guarantee of $345 million to support the issuance of the bond.
The Green Panda Bond will be the latest among several other bonds that Egypt has issued since 2020 when it launched its Green Financing Framework.
Adesina also commended Egypt for its commitment to increasing the role of the private sector in the economy.
Egypt launched early this year the privatisation of 32 state-owned entities worth $40 billion over the next four years to reduce the footprint of the public sector in the economy and give more room to private sector to grow.
In terms of additional financial support to Egypt in 2023, the bank plans to provide the country $133 million to deal with macroeconomic instability caused by the continuing global compounded crisis. Last year, the bank provided $272 million policy-based operation in supporting Egypt’s efforts to tackle the impact of the crisis.