Egypt’s Minister of Planning, Economic Development, and International Cooperation, Rania Al-Mashat, called for increased investment in infrastructure to address the development gaps faced by emerging economies, during the 9th Annual Meeting of the New Development Bank (NDB) in South Africa.
“Investment in infrastructure to provide essential services to citizens is a cornerstone of economic development and achieving the Sustainable Development Goals,” Al-Mashat said during a panel discussion titled “Development Finance Institutions at the Forefront of Infrastructure Investments.”
The minister noted that the infrastructure financing gap in Africa alone is estimated at around $100bn, with public resources no longer sufficient to meet the growing demand. She emphasized the need for innovative financing tools, including blended finance and increased private sector participation, to bridge this gap.
Al-Mashat also highlighted the importance of collaboration among multilateral development banks, such as the NDB, the Asian Infrastructure Investment Bank (AIIB), and the African Development Bank (AfDB), in developing and implementing effective financing solutions.
The President of the AIIB, Jin Liqun, echoed Al-Mashat’s call for increased investment in infrastructure, noting that development finance institutions need to rethink their approaches to rapidly expand financing in developing economies. He also stressed the importance of reducing transaction costs and improving efficiency in project implementation.
Swazi Tshabalala, Senior Vice President of the AfDB, emphasized the need to simplify approval processes and timeframes for financing to enhance benefits for government and private sector clients.
Al-Mashat concluded by underscoring the importance of leveraging the BRICS group and its NDB to enhance investment flows among member countries and meet the aspirations of various nations.