World Bank to provide over $6B in support to Egypt over next 3 years

CAIRO - 18 March 2024: The World Bank Group intends to provide more than $6 billion of support to Egypt over the coming three years.

 

The bank announced that this support includes $3 billion for financial backing to Government’s programs and $3 billion for the private sector (including mobilization) – subject to Board approval.

 

This program of knowledge and financing comes under the umbrella of the Country Partnership Framework with Egypt (2023-2027) that was endorsed by the Board of Directors in March 2023. Built on extensive consultations, and aligned with various national strategies, the Framework was launched in Cairo in May 2023.

 

Moreover, it reveals the bank’s commitment to its long-term strategic partnership with Egypt and supports the measures the country is taking for its economic recovery and restoring a sustainable path for inclusive growth. 

 

“In support of the Government’s development priorities, programs will focus on increasing opportunities for private sector participation in the economy, including through the Government’s Asset Monetization Program, strengthening the governance of state-owned enterprises, and improving the efficiency and effectiveness of public resource management,” it added.

 

According to its announcement, the World Bank Group will continue to explore opportunities for guarantees to support impactful private sector investments. 

 

It also supports climate action in Egypt building on the 2022 Country Climate and Development Report and the Government’s Nexus for Water, Food and Energy platform,and continues its support to the most vulnerable, in particular through the Government’s Takaful and Karama program. 

 

“With respect to structural reforms, a Development Policy Financing (DPF) program 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,” it stated.

 

The Bank clarified that 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. 

 

The World Bank Group’s partnership with the Government of Egypt aims at building better lives and opportunities for people. According to the banks, its programs 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.”

 

The World Bank Group’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.