Foreign Minister Warns Rising Borrowing Costs Threaten Africa’s Development Path

اجتماع مجلس محافظي البنك الأوروبي.

Dr. Badr Abdel-Aty, Egypt’s Minister of Foreign Affairs and International Cooperation, participated in the 35th Annual Meeting of the Board of Governors of the European Bank for Reconstruction and Development (EBRD) held in Latvia on Saturday, representing Egypt as its governor at the bank.

During his address, Minister Abdel-Aty discussed the growing economic and developmental repercussions of conflicts and geopolitical tensions worldwide, particularly affecting developing countries. He highlighted how these crises disrupt trade flows, supply chains, energy markets, and commodities while tightening international financing conditions.

The minister outlined the challenges faced by many African and developing nations due to rising borrowing costs and increasing debt burdens alongside limited access to concessional financing. He stressed the need for enhanced international cooperation and increased capacity of multilateral development finance institutions to respond to emerging challenges. He emphasized the importance of fostering regional economic cooperation and integration to support sustainable growth across Africa and create new investment and development opportunities.

Minister Abdel-Aty praised the role of the EBRD in supporting the private sector, sustainable infrastructure, energy security, and essential services, which contribute to resilience-building and advancing development efforts. He welcomed the bank’s initiative to respond to conflicts aimed at supporting economies affected by conflict in the Middle East, noting that this initiative reflects the significance of multilateral action in addressing regional and global challenges.