Rania Al-Mashat, Egypt's Minister of Planning, Economic Development, and International Cooperation, argued for a restructuring of the global financial system to better aid emerging economies at the 2025 World Economic Forum (WEF) in Davos, Switzerland. The forum, held from 20-24 January, focused on "Collaboration for the Intelligent Age". Al-Mashat's participation aligned with Egypt's Vision 2030, which supports economic and social development. At a session on "Returning to Financial Stability: How to Ease the Debt Burden," alongside Pakistan's Finance Minister Muhammad Aurangzeb, PTG Batchewal Bank Chairperson André Esteves, and UNCTAD Secretary-General Rebeca Greenspan, Al-Mashat stressed the need for macroeconomic stability, financial flexibility, investment-friendly policies, and structural reforms to foster sustainable economic growth. She highlighted the importance of private sector participation and a green economy transition. Citing Egypt's tourism and manufacturing sectors as examples, Al-Mashat emphasised the importance of focusing on specific growth-driving sectors. She noted that Egypt is limiting public investments to enable private sector-led development. Al-Mashat also called for restructuring the global financial system to better support middle-income countries with innovative financial tools, particularly given ongoing global shocks and limited fiscal space. She highlighted Egypt's partnerships with development partners and its use of innovative financing mechanisms like debt-for-development swaps with countries including Germany, Italy, and China. Al-Mashat explained that Egypt has implemented financial reforms to create fiscal space for social programs while maintaining debt sustainability. She underscored the role of multilateral development banks in diversifying financial tools and highlighted the importance of green bonds and debt-for-development swaps. She noted that private sector financing has, for the first time, exceeded government financing in Egypt. Al-Mashat also delivered the opening speech at a session on "The Future of Climate Action", part of the "Swaniti" climate initiative. Attendees included representatives from Bank of America, Amazon, the Bezos Earth Fund, ING Group, and Japan International Cooperation Bank, amongst others. Al-Mashat emphasised the global risks posed by climate change and the need for accelerated international action. She called for a faster global transition to clean energy and citedInternational Renewable Energy Agency (IRENA) estimates stating that renewable energy should comprise 70% of global electricity generation, rising to 91% by 2050. Achieving this, she stated, requires tripling renewable energy capacity and mobilising $4.5 trillion in annual investments. Al-Mashat noted the uneven global transition to renewable energy and highlighted challenges such as expanding investments, energy storage, smart grids, and financing. She noted that despite reaching $1.7 trillion in 2023, global energy transition investments remain insufficient. Al-Mashat reviewed Egypt's efforts in expanding renewable energy, including implementing a national sustainable energy strategy, launching the "NWFE" country platform, and offering incentives to the private sector. During the WEF, Al-Mashat met with South African ministers Parks Franklyn Tau (Trade, Industry and Competition), Enoch Godongwana (Finance), and David Ramokgopa (Electricity and Energy). Discussions focused on strengthening bilateral cooperation, given both countries' significant roles in supporting African development, particularly in the face of ongoing economic challenges. The meeting also addressed South Africa's G20 presidency. Al-Mashat highlighted the importance of the G20 agenda in accelerating global development and promoting economic development and financing for development, particularly in Africa. Al-Mashat noted the significance of upcoming international conferences, including the Fourth International Conference on Financing for Development in Spain, and the continued discussions on reforming the international financial architecture. She highlighted declining global development gains due to ongoing global crises. Al-Mashat affirmed the importance of South-South cooperation and strengthening partnerships with South Africa, especially following Egypt's BRICS membership and New Development Bank participation. She emphasised the need for unified African efforts to restructure the global financial system and achieve development integration. Al-Mashat also met with Pakistani Finance Minister Muhammad Aurangzeb to discuss joint projects and the outcomes of the 11th D-8 Organization for Economic Cooperation Summit, hosted by Egypt in 2024. Al-Mashat highlighted the 77th anniversary of Egypt-Pakistan diplomatic relations and reaffirmed Egypt's commitment to strengthening bilateral relations within the framework of South-South cooperation. She emphasised Egypt's commitment to trilateral cooperation, based on sharing successful policies and best practices among countries with similar conditions. Al-Mashat reviewed Egypt's efforts to promote inclusive growth and ongoing economic reforms. She noted that while development gaps exist in certain areas, these present investment opportunities for enhanced private sector participation and development finance.
