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AfDB's third loan to Egypt to be decided before year-end - Daily News Egypt

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AfDB’s third loan to Egypt to be decided before year-end

AfDB is working to have the loan before the year-end and the amount is yet to be designated, says Mokaddem

The African Development Bank (AfDB) is currently finalising its 2015-2019 Country Strategy Paper for Egypt (CSP), according to Leila Mokaddem Resident Representative for Egypt at the AfDB.

The CSP is expected to be aligned with the Egyptian government’s Sustainable Development Strategy and Macroeconomic Framework, Mokaddem noted.

She said the strategy reflects the recently announced revised comprehensive reform strategy of the new Egyptian cabinet, to deliver quickly on key programmes and reforms.

Mokaddem told Daily News Egypt that the Strategy is expected to be considered by AfDB’s Board in a few weeks.

The new Prime Minister, Sherif Ismail, declared that the government would gain $4bn before the end of the year to finance the budget deficit through obtaining $1.5bn from the World Bank and the AfDB, and $2.5bn from selling lands to the Egyptians abroad.

Through the strategy, the AfDB will seek to achieve high and well-diversified growth that creates jobs and higher value-added, Mokaddem said.  In addition, it will seek to achieve social justice and inclusion, while ensuring sound macroeconomic management.

Mokaddem added that these objectives are fully aligned with the AfDB’s Ten-Year Strategy, its private sector development strategy for 2013-2017, the financial sector strategy and gender strategy.

“The strategy retains two main pillars; infrastructure for sustainable and inclusive growth and governance for enhanced transparency, efficiency and fairness,” Mokaddem said. “The Bank approach under the upcoming 2015-2019 strategy for Egypt will focus on supporting [the Egyptian government’s] initiatives that include core policy and institutional reforms as well as transformational public and private investments.”

The third loan for 2015 is currently under preparation, according to Mokaddem, with an important AfDB mission currently present in Cairo. This comes after the Sharm El-Sheikh Airport loan, which amounted to $140m, and the national drainage programme III, for of $50m.

“Four key priorities will be assessed for this loan focusing on macroeconomic and fiscal reforms, business environment (with focus on regulator aspects, legislation), energy including power and oil and gas sectors, and social inclusion,” she added.

The strategy aims at securing energy resources, with a particular focus on maximising the use of local and renewable energy sources, promoting entrepreneurship and financial inclusion, supporting macroeconomic reforms, and supporting social inclusiveness.

She said the AfDB is working in coordination with a sister institution to have this loan considered before year end. The amount is yet to be decided.

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