Egypt: Egypt's Minister of Planning, Economic Development and International Cooperation Rania Al-Mashat emphasized the need for blended finance models to de-risk private investments in green projects, particularly in emerging markets. Her statement came during a high-level session on the GAEA initiative launched by the World Economic Forum, which aims to mobilize capital for climate, nature, and energy transformations.
According to State Information Service Egypt, Mashat stressed that blended finance mechanisms like concessional finance and risk-mitigation instruments could reduce investment risks and improve project bankability, thereby attracting private capital. She highlighted Egypt's 'NWFE' (Nexus of Water, Food and Energy) program as a model for integrating project design, implementation, and financing, which has been recognized globally.
Mashat noted that advancements in renewable energy, as part of the NWFE program, have boosted Egypt's potential in the sector and its ability to meet renewable energy targets. The recent Obelisk project inauguration demonstrates the progress made, contributing to the goal of generating 42% of electricity from renewable sources.
The NWFE program, launched in 2022, aims to execute Egypt's National Climate Change Strategy 2050. It combines public, private, and concessional funding with technical support to mobilize $4.5 billion for clean energy projects, developing 5.2 gigawatts of solar and wind capacity. Additionally, power purchase agreements have been signed for 8.25 gigawatts, targeting an overall 10 gigawatts.
Egypt has also shut down 1.3 gigawatts of conventional thermal power plants and strengthened its electricity grid with pound 367 million in concessional financing. Debt-for-development swap mechanisms with countries like Italy and Germany have further boosted investments, with efforts underway to expand private sector investment guarantees with the European Union and the World Bank.
The session was attended by notable figures such as Chavalit Frederick Tsao, Ray Dalio, and Justin Mundy, with moderation by Sebastian Buckup and opening remarks by Andr© Hoffmann.