Egypt, IFC partner to launch local-currency guarantee mechanism

Egypt’s Minister of Planning and Economic Development, Ahmed Rostom, held a bilateral meeting on Saturday with Ethiopis Tafara, the International Finance Corporation’s (IFC) Vice President for Africa, to advance infrastructure financing and guarantee mechanisms in line with Egypt’s Vision 2030.

The meeting was also attended by Ousmane Dione, the World Bank’s Vice President for North Africa, alongside a high-level delegation from the World Bank Group (WBG).

Minister Rostom praised the IFC’s five-decade tenure as a strategic development partner to Egypt.

He highlighted the corporation’s significant contribution to financing more than 300 Egyptian private sector projects, alongside ongoing cooperation to increase private sector participation across the economy.

Discussions focused on joint efforts between the Egyptian government and the WBG to launch an infrastructure financing and guarantee mechanism.

This initiative aims to mobilise local currency capital, stablish flexible, long-term financing tools, and reduce capital costs for national projects.

Minister Rostom emphasised that the government remains committed to its economic reform programme, stressing that improving citizens’ quality of life is the central objective guiding public investment and development policies.

He explained that the proposed guarantee mechanism will be crucial for meeting national demands in key sectors—such as energy, transport, and urban development—while protecting fiscal sustainability and easing pressure on the state budget.

Furthermore, by relying on local currency financing, the mechanism will create attractive opportunities for both domestic and international investors.

For his part, Tafara reaffirmed the IFC’s commitment to expanding investments in Egypt’s private sector, particularly in industries capable of generating sustainable jobs and supporting inclusive economic growth.

Tafara noted that the government’s structural reforms and fiscal discipline have significantly enhanced Egypt’s business environment, solidifying its position as a priority market for expanding IFC financing and investment operations.

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المصدر: Egyptian Gazette