Senior government officials and representatives of International Financial Institutions (IFIs) discussed prospects and imperatives for accelerating cross-border connectivity infrastructure investment to meet increasing demand and promote sustainable development during a seminar co-organized by the Egyptian Ministry of Finance, Asian Infrastructure Investment Bank (AIIB), and Multilateral Cooperation Center for Development Finance (MCDF) on 26 September, held alongside the AIIB Annual Meeting 2023 in Sharm El-Sheikh, Egypt.

WATCH THE SEMINAR RECORDING (STARTS AT 20:47)

Egypt’s Finance Minister and AIIB Governor Dr. Mohamed Maait opened the event by describing the importance of infrastructure expansion that deepens linkages between countries and regions and how collaboration with IFIs and partners such as MCDF can enhance project outcomes. “Cross-border infrastructure is an area of great opportunities for economic growth and mobilization of resources,” he said. “It also allows countries to share best practices and benefits, especially in fast-growing sectors like sustainable transportation, digital infrastructure, and renewable energy.”

AIIB Vice President Urjit Patel added that financing and capacity building support are critical for the development of these connectivity sectors. He observed that the estimated need for sustainable infrastructure is about USD 1.2-1.7 trillion annually, though only about half that is invested at present. “AIIB stands ready to provide the finance needed,” he said. “But a key constraint is a lack of technical capacity in some countries to prepare bankable and sustainable projects. We are therefore delighted to be partnering with MCDF to help fund the preparation of projects and address key capacity bottlenecks.”

MCDF CEO Zhongjing Wang noted that MCDF’s work with IFIs over the past 22 months has delivered USD 22 million in grants to fund the preparation and capacity building of 14 cross-border connectivity projects in the transport, energy, information and communications technology, and water sectors, applying IFI standards and practices, and that they are expected to mobilize USD 6.6 billion for 18 countries in Asia, Africa, and Latin America. “If infrastructure projects are not developed using high standards, their development impact will be jeopardized,” he said, while adding that MCDF facilitates information-sharing by IFIs to help governments and their financiers better understand these standards.

Tatiana Rosito, Brazilian Deputy Minister of Finance and AIIB Governor, welcomed the large role MCDF can play in these regards and explained the broader implications of cross-border connectivity for South America. “Connectivity is a vehicle for peace and integration for our continent,” she explained. She also described connectivity’s significance for building sustainability in vulnerable areas such as the Amazon, stating that: “To protect, you actually need to connect.”

African Development Bank Vice President Solomon Quaynor highlighted the game-changing African Continental Free Trade Area that has heightened the need for infrastructure to connect African countries with each other. “The planning environment has really changed,” he said. “It’s no longer economic corridors to the port and out. It’s really the logistics networks internally,” he continued, adding that MCDF work is crucial for bringing more regional projects to bankability. Asian Development Bank (ADB) Vice President Chen Shixin meanwhile said “de-carbonization and energy transition will be more integral in terms of cross-border connectivity” and is one of the issues reshaping ADB’s vision and strategy.

Sanjeev Gupta, a Board Member and Executive Director at the Africa Finance Corporation, described cross-border solidarity, trade, and funding as the building blocks of cross-border infrastructure as well as how the private sector can support it. “Capital is like goldilocks,” he said. “It doesn’t like hot. It doesn’t like cold. It likes warm. So, it’s our job in Africa to make that capital feel warm.” Zhijun Cheng, a Director General at China’s Ministry of Finance and AIIB Director, echoed that “financing is critical for cross-border infrastructure” and said that is why China is working closely with other countries, IFIs, MCDF, and the private sector to build multilateral financial services systems.

Dr. Mohamed Maait, Minister of Finance and AIIB Governor, Egypt

Urjit Patel, Vice President, Investment Operations (Region 1), Asian Infrastructure Investment Bank (AIIB)

Zhongjing Wang, CEO, Multilateral Cooperation Center for Development Finance (MCDF)

(left to right) Ede Ijjasz, Senior Advisor to CEO, MCDF; Tatiana Rosito, Deputy Minister of Finance for International Relations and AIIB Governor, Brazil; Solomon Quaynor, Vice President, Private Sector, Infrastructure and Industrialization, African Development Bank; Shixin Chen, Vice President for South, Central and West Asia, Asian Development Bank; Sanjeev Gupta, Board Member and Executive Director, Financial Services, Africa Finance Corporation; Zhijun Cheng, Director General of the International Financial and Economic Cooperation Department, Ministry of Finance, China and AIIB Director