Egypt’s FinMin calls for debt reduction to boost African economies

Egypt’s Minister of Finance Ahmed Kouchouck emphasised the need to improve debt indicators and restore international investors’ confidence in African economies by reducing debt levels, as per Cabinet statement.

He highlighted the importance of exploring diverse and innovative financing options to boost private sector involvement in development while tackling economic and financial challenges in middle-income African nations.

Kouchouk emphasised that African countries encounter financial limitations, high borrowing costs, external disruptions, and poor credit ratings. To tackle these issues, it is essential to consider creative solutions such as guarantees, debt-for-investment exchanges, and sustainable development initiatives.

These strategies can enhance revenue streams, ease debt pressures, and encourage private sector engagement in alignment with the region’s development objectives, according to the statement.

Kouchouk stressed the need for a more impactful role by multilateral development banks in maximising investment flows through low-cost financing and leveraging private capital, the statement added.

He called for a global financial system that ensures Africa’s fair access to affordable capital, noting that South Africa’s presidency of the G20 presents an opportunity to amplify Africa’s voice in shaping international financial policies.

The minister also underscored the importance of promoting sustainable financing, accelerating reforms of the global financial architecture, and enhancing African representation on the boards of multilateral development banks.

He advocated for blended financing models to reduce investment risks in Africa, while reaffirming Egypt’s commitment to working effectively with international partners to advance Africa’s development financing priorities.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama