Commits $1.5 billion loan for Egypt
THE African Development Bank (AfDB) has given a go ahead to $1.5 billion loan to Egypt. International Cooperation Minister of Egypt, Sahar Nasr revealed that the loan amount will be disbursed over next three years. The first instalment of $500 million is set to arrive imminently, earmarked for the government’s economic development initiatives and national projects, he said in an interview with Reuters on November 28 Highlighting Egypt’s ongoing competitive economic reform programme, Nasr, a former World Bank official, emphasised that the loan reflects the culmination of over a year of dedicated efforts. The infusion of funds aligns with the Government’s strategic vision for economic advancement.
“We have a competitive economic reform programme that started more than a year back and based on that we are taking the first tranche,” Nasr, a former World Bank official, told Reuters.
This financial boost comes in the wake of Egypt’s anticipation of an additional $1 billion from the World Bank by the end of the yuear, aimed at supporting the national budget. Discussions regarding potential financing from the International Monetary Fund (IMF) are on the horizon, pending parliamentary convening, according to Nasr’s earlier remarks to Reuters.
AfDB representative Leila Mokaddem conveyed the bank’s endorsement of Egypt’s economic trajectory, stating, “The bank’s approval today is a strong message affirming that the Egyptian economy is moving at a steady pace towards achieving comprehensive development and confirms that the bank is confident in the government’s reform process.”
The economic landscape in Egypt has faced challenges, with a foreign currency shortage. The injection of funds is anticipated to alleviate these pressures and support the country’s economic resilience. Despite substantial aid from Gulf Arab nations, Egypt’s foreign currency reserves stood at $16.42 billion in November-end.
Signs pact with Moroccan fund
THE Mohammed VI Investment Fund (FM6I) and the African Development Bank have signed a Letter of Intent to enhance funding sources for productive investment and bolster the role of the private sector in the Moroccan economy.
The agreement was signed during the Africa Investment Forum 2023 Market Days held in Marrakech from November 8-10.
The Letter of Intent is a commitment to fostering collaboration, combining efforts, expertise, and resources to amplify investment impact and achieve transformative development, according to a statement released by the African Development Bank.
President of the African Development Bank, Akinwumi Adesina, emphasised the importance of the Mohammed VI Investment Fund as a mechanism reflecting Morocco’s dedication to strengthening its socio-economic foundations. He stated that the partnership aims to deliver substantial development outcomes by aligning efforts.
Director General for the Fund, Mohamed Benchaaboun, lauded this partnership with the African Development Bank. He emphasised that the partnership, sealed during the Africa Investment Forum, demonstrates the fund’s commitment to Africa and will significantly boost private investment on the continent.
As part of its efforts to enhance productive investment in Morocco, the Fund has launched three major initiatives. It is also in the process of finalising the selection of management companies responsible for overseeing thematic and sectoral funds, offering Moroccan companies funding solutions to strengthen their investment capacity, create longterm employment, and expand their activities into new markets.
Additionally, the Fund has introduced a subordinated debt product to complement its equity financing, enabling Moroccan businesses to fund their investment projects while simultaneously increasing their equity
