Latest news with #developmentfinance
Zawya
4 days ago
- Business
- Zawya
Arab Coordination Group (ACG) provided US$ 19.6 billion in 2024 to promote global sustainable development
The Arab Coordination Group (ACG) ( the world's second-largest development finance group, extended US$19.6 billion collectively to fund nearly 650 operations in more than 90 countries in 2024. This significant financing was geared towards developing critical infrastructure, addressing global challenges like climate change and food security, and supporting international trade. The ACG Heads of Institutions gathered in Vienna today for their 20 th annual meeting hosted by the OPEC Fund for International Development (the OPEC Fund). Ahead of the Fourth International Conference on Financing for Development (FFD4) which is scheduled to take place from 30 June to 3 July 2025 in Spain, the group reaffirmed its commitment to scaling-up financial assistance for sustainable development. The top three sectors supported by ACG financing last year were energy (29 percent), agriculture (20 percent) and the financial sector (16 percent). Over 45 percent of the total financing promoted global trade, ensuring the movement of critical products and supporting small and medium-sized enterprises. In 2024, approximately 20 percent of the ACG's commitments were dedicated to Africa, aligned with the US$50 billion pledge made by the group in November, 2023. During their meeting in Vienna today, the Heads of Institutions pledged continued and increasing support to the most vulnerable communities in Africa. The commitment aims to provide financing for energy security and energy transition; food security; enhanced integration of the Arab and African regions; gender and youth initiatives; and private sector support. The ACG will celebrate its 50 th Anniversary in October 2025, marking a significant milestone in its journey of fostering sustainable development worldwide. This momentous occasion will provide an opportunity to reflect on the Group's remarkable legacy, achievements, and challenges, while also reaffirming its commitment to global development. This event will not only document the Group's accomplishments over the past fifty years but also inspire renewed commitment to advancing impactful development solutions worldwide. Distributed by APO Group on behalf of Arab Coordination Group (ACG). About the Arab Coordination Group (ACG): The Arab Coordination Group (ACG) is a strategic alliance that provides a coordinated response to development finance. Since its establishment in 1975, ACG has been instrumental in developing economies and communities for a better future, providing more than 13,000 development loans to over 160 countries around the globe. Comprising ten development funds, ACG is the second-largest group of development finance institutions in the world and works across the globe to support developing nations and create a lasting, positive impact. The Group comprises the Abu Dhabi Fund for Development, the Arab Bank for Economic Development in Africa, the Arab Fund for Economic and Social Development, the Arab Gulf Programme for Development, the Arab Monetary Fund, the Islamic Development Bank, the Kuwait Fund for Arab Economic Development, the OPEC Fund for International Development, the Qatar Fund for Development and the Saudi Fund for Development.
Zawya
5 days ago
- Business
- Zawya
Egypt secures $15.6bln in development financing for private sector from 2020 to 2025
Arab Finance: The Ministry of Planning and Economic Development, and International Cooperation has launched a new report titled "Development Finance to Foster Private Sector: Led Growth and Job", highlighting Egypt's success in mobilizing $15.6 billion in concessional financing for the private sector from January 2020 to May 2025, as per a statement. The report was unveiled during a high-level conference held under the auspices of Prime Minister Mostafa Madbouly in the New Administrative Capital, with the participation of ministers, development partners, international institutions, the European Union, and private sector representatives. The event served as a platform to review both direct and indirect financing mechanisms extended by development partners to local and foreign private sector actors over the past five years. Minister of Planning and Economic Development, and International Cooperation Rania Al-Mashat stressed that empowering the private sector is no longer optional but a strategic necessity to build economic resilience, foster sustainable growth, and create employment. She emphasized that development financing plays a crucial role in addressing the global financing gap by offering concessional resources, technical support, and risk-reducing instruments, especially in critical sectors. Al-Mashat noted that institutional coordination, enhanced transparency, and strengthened partnerships with development partners are key to generating impactful projects that contribute to job creation, local development, and a broader economic transformation. She described development finance for the private sector as an investment in Egypt's future. According to the report, Egypt has witnessed a marked evolution in its relationship with development partners, with a clear shift toward prioritizing the private sector. In 2024, for the first time, development financing to the private sector exceeded that of the public sector, reaching over $4.2 billion. From January to May 2025, the private sector secured an additional $1.14 billion in financing, underscoring sustained momentum and growing international confidence in Egypt's investment climate. More than 30 bilateral and multilateral development partners have provided funding through a wide range of instruments tailored to private sector needs. The European Bank for Reconstruction and Development (EBRD) led with 22% of total financing, followed by the European Investment Bank (EIB) at 21%, reflecting a strong European presence in financing infrastructure and private sector capacity-building. Together, EBRD and EIB accounted for nearly $7.3 billion, approximately 47% of total development financing for the private sector since 2020. The International Finance Corporation (IFC) ranked third, contributing 19%, reflecting a focus on small and medium-sized enterprises and direct investment. The report also presents a comprehensive framework for empowering the private sector, focusing on improving the business environment, enhancing competitiveness, and building institutional capacity. It highlights access to a diverse set of financial tools, ranging from concessional loans and equity investments to tailored technical assistance, as essential for long-term development impact. The report identifies green transformation, digital economy, entrepreneurship, and inclusive growth as strategic pillars for the coming period. It stresses the importance of aligning development financing with national priorities and ensuring adaptability to evolving private sector needs, in line with Egypt's Vision 2030. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
5 days ago
- Business
- Zawya
Egypt secures $15.6bln in concessional financing for private sector since 2020: El-Mashat
Egypt - Minister of Planning, Economic Development, and International Cooperation Rania El-Mashat announced during the 'Development Finance to Foster Private Sector-Led Growth & Jobs' conference that concessional development financing for Egypt's private sector reached $15.6bn between 2020 and May 2025. This financing was provided through more than 30 bilateral and multilateral development partners, with banks and financial institutions accounting for 40% of the total. El-Mashat emphasized that the conference reflects Egypt's strategic shift toward a private-sector-led economy based on competitiveness, partnerships, and sustainability. She highlighted the critical role of development finance in boosting private investment and job creation. The government continues to implement a structural reform agenda focused on macroeconomic stability, enhanced competitiveness, a stronger investment climate, and advancing green transformation efforts. El-Mashat noted that the annual global financing gap to achieve the Sustainable Development Goals (SDGs) is estimated at $4 trillion, according to the UN's 2024 data. However, private sector mobilization through development finance remains below $70bn, based on OECD divs—underscoring the urgent need to scale up such financing. To help bridge this gap, the ministry launched a comprehensive economic diplomacy framework in 2020 to deepen cooperation with international financial institutions and expand the use of innovative financial tools targeting all segments of the private sector—including large corporations, SMEs, microenterprises, startups, and entrepreneurs. In response to the need for clearer communication and coordination between development partners and the private sector, the ministry also introduced the 'Hafiz' platform. The platform provides over 90 services and lists more than 1,000 local and international opportunities, positioning itself as a key entry point for partnerships and technical support. These combined efforts have facilitated development projects across multiple sectors, with total development financing exceeding $15.6bn since 2020. In addition, technical support projects valued at more than $200 million have delivered advisory services, technology transfer, and training to build private sector capacity and broaden market access. One of the notable outcomes includes the acceleration of PPP project implementation—reducing preparation timelines from one year to just two months—thanks to secured funding for feasibility studies and the appointment of legal, technical, and financial consultants. Banks and financial institutions have received over 40% of the total development finance since 2020, while renewable energy, electricity, and logistics sectors together accounted for more than 25%. El-Mashat also announced that Egypt has been selected by the Climate Investment Funds (CIF) as one of only seven countries globally to benefit from its Green Industry Program, which will provide $1bn in concessional financing and technical support to drive green industrial investment. Additionally, she introduced a new coordination mechanism for the European Fund for Sustainable Development Plus (EFSD+), which will offer project guarantees worth €1.8bn. These guarantees, provided through institutions such as the European Investment Bank (EIB), the EBRD, the German Development Bank (KfW), the IFC, and others, aim to attract greater private investment in sectors including renewable energy, food security, human capital, and infrastructure. The minister further noted that Egypt is working to strengthen South-South cooperation and expand market access for Egyptian companies through concessional financing and joint initiatives with partner countries, reinforcing Egypt's emerging role as a regional development and investment hub in Africa. She also revealed that preparations are underway to launch Egypt's national economic development narrative, in collaboration with the World Bank Group. This narrative will define key reform priorities to enhance exports, support local industries, and attract foreign direct investment, thereby contributing to long-term economic stability. €1.8bn Investment Guarantee Mechanism Launched During the conference, Egypt and the European Union unveiled a new €1.8bn Investment Guarantee Mechanism under the EFSD+ initiative. Part of the EU's broader External Investment Plan, the EFSD+ platform seeks to enhance sustainable investment in partner countries, including Egypt. It promotes greater private sector participation by offering innovative financial tools such as guarantees, concessional loans, and blended finance instruments to reduce investment risks and encourage engagement in key sectors like water, energy, agriculture, climate, infrastructure, and digitalization. El-Mashat stated that the mechanism represents a shared commitment between Egypt and the EU to deepen private sector involvement in development. Companies will be able to access investment guarantees through the 'Hafiz' platform, which also offers concessional financing via partner banks, EU-backed risk guarantees, technical assistance, and opportunities in infrastructure and green projects supported by the EU. The guarantee mechanism is supported by key international financial institutions, including the EIB, EBRD, KfW, IFC, and Italy's CDP. These partnerships aim to increase concessional development financing to Egypt's private sector across strategic sectors. Stefano Sannino, Director-General for the Southern Neighbourhood and Middle East at the European Commission, described the initiative as a strategic platform to unlock diverse financial solutions and catalyze investment in Egypt. Under the 'Team Europe' framework, the EU aims to position itself as a long-term economic partner in Egypt's sustainable development. The mechanism is expected to mobilize up to €5bn in public and private investments between 2024 and 2027. $4.2bn in Development Finance Mobilized in 2024 According to the Ministry's Development Financing for Private Sector Empowerment report, Egypt's private sector received over $4.2bn in development financing in 2024—surpassing, for the first time, financing directed to the public sector. This signals a growing shift among development partners toward empowering the private sector as a key driver of the SDGs. From January to May 2025, financing reached $1.14bn, reinforcing expectations of sustained momentum. In total, development financing to the private sector between 2020 and May 2025 amounted to approximately $15.6bn, supported by more than 30 development partners. The European Bank for Reconstruction and Development (EBRD) led all contributors, accounting for 22% of the total. The European Investment Bank (EIB) followed with 21%, reflecting the significant role of European development partners—both bilateral and multilateral—in financing infrastructure and supporting private sector growth in Egypt. Together, European partners have provided approximately $7.3bn, or 47% of the total. The IFC ranked third with a 19% share, underscoring its focus on supporting SMEs and fostering direct investment.
Bloomberg
10-06-2025
- Business
- Bloomberg
Trump Pick Ben Black Seeks More Risk, Private Investors for Development Agency Deals
President Donald Trump's surprise pick to lead an obscure federal agency that invests in development finance said he plans to take on more risk and attract private investors to its deals. Ben Black, 40, who is nominated to run the US International Development Finance Corp., said that taking more equity risk should be instrumental to the agency as it works more closely with the private sector.
Arab News
31-05-2025
- Business
- Arab News
Pakistan's finance chief stresses apolitical funding approach in meeting with World Bank officials
KARACHI: Pakistan's Finance Minister Muhammad Aurangzeb on Friday called for a merit-based approach to global development financing, urging international lenders to rise above political considerations during a meeting with incoming and outgoing World Bank country directors in Islamabad. The meeting followed weeks of diplomatic friction between nuclear-armed rivals India and Pakistan, which escalated into a four-day military standoff involving fighter jets, missiles, drones and artillery fire. Amid the tensions, Indian authorities lobbied the International Monetary Fund (IMF) to halt the disbursement of a $1 billion tranche to Pakistan, saying the funds could finance Islamabad's military activities. IMF officials later dismissed the concerns, emphasizing the disbursement mechanisms ensured transparency and that IMF support was intended to stabilize developing economies' balance of payments, with the funds directed to central banks rather than governments. 'The Minister ... highlighted the recent successful completion of the International Monetary Fund (IMF) review and the subsequent $1 billion disbursement under the Extended Fund Facility (EFF), along with additional resources made available through the Resilience and Sustainability Facility (RSF),' said a statement circulated by the finance ministry after the meeting. 'He noted that development finance must be guided by merit and objective assessment, rising above political considerations to ensure sustainable progress,' it added. Aurangzeb also praised the World Bank's longstanding support for Pakistan's economy, especially in times of fiscal stress, and reiterated Islamabad's commitment to deepening collaboration with the institution. He extended a warm welcome to Bolormaa Amgaabazar, the new World Bank Country Director for Pakistan, while commending her predecessor, Najy Benhassine, for his contributions during his tenure. A key point of discussion was the World Bank's 10-year Country Partnership Framework (CPF), a strategic agreement designed to guide development cooperation through targeted investments in Pakistan's critical sectors. The CPF, finalized during Benhassine's tenure, will now be overseen by Amgaabazar and aims to unlock $20 billion for the country. Aurangzeb highlighted the importance of effective implementation of the framework to fully leverage the Bank's institutional, technical and financial support. The meeting reaffirmed mutual commitment to strengthening Pakistan's economic resilience and advancing inclusive development through strategic partnerships, the finance ministry said.
