How NDB promotes sustainable development in Egypt, developing countries?

14 / 06 / 2024

By Marwa Nassar - -

The National Development Bank (NDB) has invested approximately $35 billion in green projects and it seeks bolstering sustainable development in Egypt as well as developing countries.

Egypt’s membership in the NDB supports the bank’s focus on cooperation among developing countries, enabling significant growth rates for these countries.

NDB President Dilma Rousseff emphasized the bank’s commitment to supporting Egypt through financing and technical assistance while expanding support to new members, primarily Egypt and Bangladesh.

The NDB aims to reach $5 billion in financings by 2025, with $1 billion allocated to new members Egypt and Bangladesh, she said during the first seminar of the New Development Bank in Egypt, held under the theme “Navigating New Horizons,” under the patronage of President Abdel Fattah El-Sisi and attended by Prime Minister Dr. Mostafa Madbouly.

For his part, Anil Kishora, NDB Vice President & Chief Risk Officer, revealed key features of the NDB’s strategy for 2022-2026, which aims to enhance cooperation among member states. This strategy focuses on mobilizing resources for infrastructure and sustainable development, with four main pillars; renewable and green energy, transport and infrastructure, digital and financial inclusion, and social infrastructure and climate issues.

He emphasized that Egypt is one of the most important member states of the NDB.

Meanwhile, Xiheng Jiang, NDB Director General for Strategy, Policies and Partnerships Department, emphasized the bank’s focus on high-value projects in six areas, including infrastructure and digital infrastructure, with a special focus on projects that reduce carbon emissions and help communities adapt to climate change.

“The bank plans to mobilize resources and financing, through providing $30 billion in total volume of approved financing from its own balance sheet over 2022-2026, and co-financing 20% of projects with partner multilateral development banks over the same period,” she added.

For his part, Bin Han, NDB Director General for Private Sector and Non-Sovereign Guaranteed Transactions Department, highlighted the bank’s aim to accelerate support for non-sovereign operations, including infrastructure and sustainable development projects, mobilizing capital from the private sector without sovereign guarantees.

He mentioned promising opportunities in Egypt, particularly in public-private partnerships and foreign investment projects.

Meanwhile, Atter Hannoura, Director of the PPP Central Unit Egypt; Alternate Director for the Constituency of Bangladesh, UAE and Egypt at the NDB, discussed Egypt’s current economic recovery and the bank’s plans to address present and future challenges, thereby enabling the bank to tackle the challenges faced by Egypt and other member states.

Vladimir Kazbekov, NDB Vice President & Chief Operating Officer, noted that the total portfolio amounts to about $45 billion across more than 100 projects, with over half of the funds already disbursed.

He pointed out that the bank aims to increase the number of signed financing deals this year to 12 agreements worth $4.7 billion, focusing on sovereign projects and increasing the number of financing approvals.

Meanwhile, Minister of International Cooperation Rania Mashat said “The size of the developmental financing obtained by Egypt over the past 4 years exceeded $38 billion, with around $10 billion directed to the private sector.”

She highlighted that the Ministry of International Cooperation publishes an annual detailed report on its implementation annually, aligning with the Sustainable Development Goals, Egypt’s plans, and the 2030 strategy.

Mashat explained that understanding the current initiatives launched by the New Development Bank and transforming them into a strategy ensures obtaining financing, technical support, guarantees, and more.

The Minister emphasized Egypt’s strong cooperation with the world and various development partners, particularly in renewable energy, water, infrastructure, and capacity building, noting that it is necessary to create an agenda to bridge the financing gap in line with the orientations of international financial institutions and sustainable development goals.

Mashat pointed out that Egypt was one of the first countries to launch integrated platforms for energy, climate, and water projects, which serve as a comprehensive platform for presenting projects in various fields and achieving interconnection between the government, financing institutions, development partners, and the private sector simultaneously. She emphasized that this platform serves as a model that can be applied in many other countries.

NDB President Dilma Rousseff stated that the bank has invested approximately $35 billion in green projects, allowing developing countries to follow global steps and face global economic challenges in a world confronting successive economic crises.

The NDB President highlighted Egypt’s efforts within the framework of South-South cooperation, highlighting the country’s comprehensive strategy under the “Egypt Vision 2030,” which relies on a deep understanding of sustainable development’s goals.

She emphasized that the NDB seminar, with the participation of many member countries of the New Development Bank, contributed to enhancing the benefit from Egypt’s integrated experience in supporting the local economy and showcasing its pioneering experience, especially in sustainable development projects.

“Egypt has a pioneering experience in its national projects to support the local economy,” Rousseff affirmed, noting that the bank’s mission visited several major national projects, demonstrating Egypt’s capability to design and implement strategic projects aligned with the sustainable development goals and the vision of the New Development Bank.

These projects include the fully smart New Administrative Capital built according to the latest global technological standards, the expansions of the Suez Canal, the Suez Canal Economic Zone (SCZone), and various energy and digital infrastructure projects that mark a significant shift in the nature of the local Egyptian economy, serving as success models for other member states.

Rousseff pointed out that Egypt, with its geographical location, acts as a gateway between Asia and Africa and is a crucial corridor for global trade, underscoring its importance in the global economic system.
She added that Egypt holds a significant share of global trade and is one of the most industrially advanced African countries, ranking seventh in population, with immense human capacities allowing it to achieve high economic growth rates.

“Through this seminar, the bank will work closely with Egypt to understand its needs and goals more deeply, aligning with sustainable development goals, particularly in digital infrastructure, transport, and water sectors,” she noted.

She stressed that one of the main goals of the bank and the BRICS group, in general, is to reduce the cost of financing available to developing countries. In some African countries, the cost of borrowing is four to eight times higher than that for developed countries like Germany.

Rousseff highlighted that one of the primary reasons for establishing the New Development Bank in 2014 was to find alternatives for financing developing countries and to reduce disparities between the North and South in terms of access to financing.

The NDB President emphasized that developing countries now have greater opportunities to rely on their human capacities and technological advancements, allowing them to participate in shaping the new global economy and providing better opportunities to combat poverty and climate change impacts through mutual cooperation.