World Bank announces more than $6b support package for Egypt
The World Bank announced on Monday plans to provide more than $6 billion in support to Egypt throughout the coming three years. The anticipated funding is subject to the international lender’s board approval.
“Over the coming three years, the World Bank Group intends to provide more than US$6 billion of support to Egypt, including US$3 billion for financial support to Government’s programmes and US$3 billion for the private sector (including mobilisation) – subject to Board approval.” a statement by the World Bank read.
“The World Bank Group’s partnership with the Government of Egypt aims at building better lives and opportunities for people. Our programmes support Egypt in the priority areas of private sector growth and job creation; enhancing human capital outcomes through inclusive social protection, health, and education systems; and fostering resilience through climate smart solutions and strengthened economic management. This includes a focus on protecting and investing in the poorest and most vulnerable, who are hardest hit by economic shocks.”
Last week, Egyptian Finance Minister Mohamed Maait said World Bank pledged to provide his country with $3 billion in budget support, following successful negotiation of an expanded International Monetary Fund (IMF) programme.
Earlier this month, authorities in Egypt enacted a long-awaited exchange rate reforms and carried out the nation’s biggest-ever interest rate hike.
The World Bank further said that it would continue to explore opportunities for guarantees to support impactful private sector investments.
“Building on the 2022 Country Climate and Development Report and the Government’s Nexus for Water, Food and Energy platform, the World Bank Group also supports climate action in Egypt. It will also continue its support to the most vulnerable, in particular through the Government’s Takaful and Karama programme.”
“With respect to structural reforms, a Development Policy Financing (DPF) programme anchored on three main pillars: (i) enhancing economic competitiveness and improving the business environment; (ii) building macroeconomic resilience; and (iii) supporting the green transition is being discussed. The DPF will support the Government in its implementation of the State Ownership Policy and reforms that level the playing field to unleash private sector growth.”
This programme of knowledge and financing lies under the umbrella of the Country Partnership Framework with Egypt (2023-2027) that was endorsed by the World Bank’s board in March 2023.
The World Bank’s current operational portfolio of over $8 billion in Egypt comprises $6 billion from the International Bank for Reconstruction and Development, $1.9 billion from the International Finance Corporation, and $0.5 billion from the Multilateral Investment Guarantee Agency.
