CAIRO – 24 June 2024: Egypt has secured $2 billion in budget support from major development partners, including the World Bank (WB), the European Union (EU), the African Development Bank (AfDB), and South Korea. Minister of International Cooperation, Rania Al-Mashat, announced this achievement.
The purpose of this financial assistance is to strengthen structural reform initiatives that aim to foster the growth of Egypt’s private sector.
The World Bank Group has approved a financing package of $700 million, with $500 million from the World Bank itself and $200 million from other partners. This funding is part of the World Bank’s commitment to provide $6 billion over three years in support of Egypt’s economic and structural reforms.
Of this $6 billion, $3 billion will go to the government, while $3 billion will be allocated to empower the private sector. The loan has a repayment period of 35 years, including a 5-year grace period.
During the Egyptian-European Investment Conference, Egypt secured a €1 billion ($1.069 billion) agreement with the European Union. This initial installment is part of a larger €5 billion allocation, which will be disbursed in the latter half of 2024.
The European Union has committed to providing macroeconomic and budgetary support, with the remaining €4 billion set to be released between 2025 and 2027.
Furthermore, Egypt signed an agreement with the AfDB worth $131 million to boost the private sector. This agreement was made during Minister Al-Mashat’s visit to Kenya to attend the annual meetings of the AfDB in June.
In addition, the Korean Economic Development Cooperation Fund provided $100 million as a sideline arrangement during the Korea-Africa Summit.
Minister Al-Mashat also mentioned that negotiations are currently underway with the Asian Infrastructure Investment Bank to secure financing worth $300 million.
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