Egypt's commitment to sustainable development shines through its fruitful partnership with AIIB.
Egypt's commitment to sustainable development shines through its fruitful partnership with AIIB - File Photo
In a significant stride towards bolstering its sustainable infrastructure and fostering green and smart investments, Egypt has actively collaborated with the Asian Infrastructure Investment Bank (AIIB) since officially becoming a member in 2016. AIIB, a prominent multilateral development bank specializing in financing sustainable infrastructure projects, has been instrumental in driving Egypt's sustainable economic development.
Since Egypt's accession to the bank, AIIB has provided substantial funding for various priority projects in both the public and private sectors, with the portfolio exceeding $1.3 billion. These investments span diverse infrastructure sectors, contributing to Egypt's holistic and sustainable economic growth.
One of the key highlights of AIIB's collaboration has been the facilitation of $360 million in concessional financing to support 11 private sector companies involved in the construction of the Benban Solar Energy Complex in Aswan.
This complex, with a capacity of up to 2,000 megawatts, is a regional and global solar energy hub, epitomizing the significance of multilateral cooperation. Funding for the project came from various international financial institutions, including AIIB, the International Finance Corporation, and the European Bank for Reconstruction and Development.
Furthermore, AIIB allocated $150 million to enhance credit lines for banks, promoting lending to small and medium-sized enterprises (SMEs) and fostering comprehensive and sustainable growth while creating job opportunities.
Over the past three years, the Egyptian Ministry of International Cooperation has strengthened international partnerships aimed at empowering the private sector. This has resulted in concessional development financing of approximately $7.3 billion for the private sector, with an additional $2 billion made available since the beginning of 2023. These investments underscore the pivotal role played by international financial institutions in stimulating the private sector through concessional development financing.
In addition to its support for the private sector, AIIB has provided $300 million in concessional financing for water sector projects. This funding aligns with Egypt's strategic focus on sustainable water resource management and the achievement of Sustainable Development Goal 6, which centers on clean water and sanitation.
Moreover, AIIB allocated $360 million for development policy financing, which supports comprehensive sustainability, private sector engagement in development, and women's empowerment. This funding is structured around three core pillars: enhancing overall financial sustainability, improving state-owned enterprise management through enhanced transparency and reporting, and promoting the transition to a green economy.
Egypt's collaboration with AIIB reflects its commitment to advancing sustainable development and ensuring that infrastructure projects are undertaken transparently and inclusively. These partnerships are a testament to Egypt's growing prominence on the global economic stage and its dedication to fostering international cooperation for sustainable growth.
