Egypt urges debt relief to boost Africa’s development

Egypt’s Finance Minister, Dr. Mohamed Maait, stressed the detrimental impact of Africa’s financing gap on development investment rates. He emphasised the need for debt alleviation to achieve developmental and climate goals across African nations, especially in light of mounting debt burdens stemming from successive global economic crises, according to an Egyptian Cabinet statement published on Thursday.

Maait called for intensified international efforts to reform debt structures to enhance support for sustainable development initiatives. He highlighted the shortcomings of the current global financial system in addressing debt challenges faced by African economies.

During a meeting with Claver Gatete, Under-Secretary-General and Executive Secretary of the United Nations Economic Commission for Africa (UNECA), on the sidelines of the IMF and World Bank Spring Meetings in Washington, Maait underscored the urgency of integrating the informal economy to curb tax revenue erosion in African countries. He also noted its negative impact on attracting foreign investment due to concerns over unfair competition.

The minister elaborated on Egypt’s collaboration with the United Nations Economic Commission for Africa (UNECA) in conducting capacity-building workshops on taxation for the Sudan and Libya. He expressed Egypt’s readiness to expand this initiative and share its expertise with all African nations.

Maait further emphasised the alignment of UNECA’s priorities with the Sustainable Development Goals (SDGs). He called upon UNECA to support the issuance of regional green and blue bonds. He also expressed Egypt’s willingness to share its experience in issuing green bonds and Panda bonds in the Chinese market to expand access to promising opportunities for development and climate financing.