As part of her ongoing participation in the Fourth International Conference on Financing for Development in Seville, Spain, within the Egyptian delegation headed by H.E. Prime Minister Dr. Mostafa Madbouly, on behalf of H.E. President Abdel Fattah El-Sisi, President of the Arab Republic of Egypt, H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation, participated in a number of events concerning expanding fiscal space for developing countries, national frameworks and platforms, aligning capital flows with Sustainable Development Goals (SDGs), and a new vision for debt.
Expanding Fiscal Space for Developing Countries and a New Vision for Debt
H.E. Dr. Rania Al-Mashat participated in a panel titled “Expanding Fiscal Space: A New Vision for Debt and Development Finance,” with the participation of Dr. Mahmoud Mohieldin, Chair of the UN Expert Group on Debt and the UN Special Envoy on Financing the 2030 Sustainable Development Agenda; Ms. Rola Dashti, Executive Secretary of the Economic and Social Commission for Western Asia (ESCWA); and Ms. Zuzana Brixiova, Director of Macroeconomics, Finance and Governance Division at the UN Economic Commission for Africa (UNECA).
The Minister of Planning, Economic Development and International Cooperation emphasized that the 4th International Conference on Financing for Development represents a pivotal moment for fulfilling the international community’s commitments for achieving SDGs, particularly after the successive crises the world is facing, which undermine the ability of developing and emerging countries to meet the requirements of the development path.
H.E. Minister Al-Mashat highlighted the importance of implementing the recommendations of the UN expert group’s report on solving the debt problem in Global South countries.
These included 11 key recommendations, among them: redirecting and renewing resources of existing funds in multilateral development banks and the International Monetary Fund to enhance liquidity, adopting policies to extend maturities and finance loan repurchases, reducing debt service during crises, reforming the G20 Common Framework to include all middle-income countries, and reforming the Debt Sustainability Analyses (DSA) of the IMF and World Bank to better reflect the situation of low and middle-income countries, among other recommendations.
H.E. Dr. Al-Mashat expressed her aspiration that the 4th International Conference on Financing for Development will contribute to taking concrete steps towards restructuring the global financial system, which has become inadequate for the magnitude of challenges and changes facing developing and emerging countries. She noted that rising debts and decreasing investments undermine the ability of developing and emerging countries to catch up. She also stressed the need to overcome global challenges and return to the multilateral development cooperation system.
H.E. Dr. Al-Mashat reiterated Egypt’s efforts to promote financing for development through innovative mechanisms such as debt swap programs with Germany and Italy, and the signing of a new agreement with China. She pointed to the credibility and trust between Egypt and international financing institutions, which facilitated the mobilization of more than $15.6 billion in development financing for the private sector since 2020.
Reforming the Global Financial Architecture: Aligning Capital Flows with Development and Climate Goals
In a related context, H.E. Dr. Rania Al-Mashat participated in a high-level session titled “Reforming the International Financial Architecture: Aligning Capital Flows with Development and Climate Goals,” organized by the Columbia Center on Sustainable Investment (CCSI), the Sustainable Development Solutions Network (SDSN), and the Belt and Road Green Development Council (BRIGC).
Participants included Professor Jeffrey Sachs, President of the UN Sustainable Development Solutions Network (SDSN); Mr. Claver Gatete, Executive Secretary of the UN Economic Commission for Africa (ECA); Professor Kevin Urama, Chief Economist of the African Development Bank; and Ms. Carla Louveira, Minister of Finance of Mozambique, among others.
H.E. Dr. Rania Al-Mashat reaffirmed that achieving inclusive and sustainable development in the African continent cannot be based solely on borrowing or on mobilizing domestic resources. Instead, it is essential to integrate both approaches to ensure sufficient and sustainable financing for development projects.
H.E. Minister Al-Mashat also emphasized that Egypt is working to achieve a delicate balance between domestic and international financing, guided by a clear vision that mobilizing domestic resources supports sustainability, while international partnerships provide momentum for implementing major strategic projects.
Regarding the global financial structure,H.E. Dr. Al-Mashat added that the current international financial system has led to a deepening of the disparity in capital flows between developing, emerging, and developed countries, and limits financing opportunities in southern countries. She asserted that developing countries, especially African nations, still bear unfair financial burdens due to the high cost of financing compared to developed countries, and this disparity weakens our ability to achieve the SDGs within set timelines.
H.E. Minister Al-Mashat mentioned that capital flows are moving in the opposite direction, away from the countries with the greatest needs, despite the high-return investment opportunities these countries offer. She underscored that instead of capital flowing towards high-yield development opportunities, we observe outflows due to increased risks associated with global fluctuations, which limits the ability of countries to attract long-term financing. She concluded that serious reforms are urgently needed in the international financial system.
Distributed by APO Group on behalf of Ministry of Planning, Economic Development, and International Cooperation – Egypt.
