In 2020, the World Bank launched a $200 million project in Egypt entitled ‘Catalyzing Entrepreneurship for Job Creation‘. As of December 2023, the project has created and maintained 408,829 jobs. Moreover, it has benefitted about 200,000 Egyptians, 43 percent of whom are women. According to the World Bank, Egypt’s population surpassed the 104 million mark in 2023 with 76 percent under the age of 40. The labor force in Egypt currently stands at about 30 million. Hence, job creation is becoming an increasingly vital factor in maintaining economic prosperity and stability.
Therefore, the World Bank aims to promote entrepreneurship and increase access to finance for small and medium enterprises through its project to support job creation in Egypt. Its project aims to address the major challenges that young people and women face when launching new businesses.
Supporting entrepreneurs
The implementing agency for the World Bank’s project in Egypt is the Micro, Small, and Medium Enterprise Development Agency. The project aims to finance 85,200 micro, small and medium enterprises (MSMEs) through 30 financial intermediaries, both bank and non-bank institutions. Moreover, it aims to invest in 190 startups through 10 risk capital intermediaries and create over 100,000 jobs.
As of 2023, the project has allocated financing to enterprises in different sectors. The World Bank’s project in Egypt allocated 72 percent of the financing to the trade sector, 15 percent to services, 7 percent to animal production, 5 percent to industry, and 1 percent to other sectors.
Read: Disparity between nations grows in post-pandemic recovery: UNDP
Debt financing
The World Bank’s project in Egypt supports MSMEs with debt financing through financial intermediaries that on-lend sub-loans from the original World Bank loan to eligible MSMEs. The project prioritizes lending for enterprises that are able to generate jobs and women-led and youth-led businesses.
Moreover, the development agency indirectly provides financial support for startups and high-growth firms in Egypt through a fund of funds for eligible risk capital intermediaries. Hence, it aims to increase the seed, early-stage and venture capital available to start-ups that have a potential for growth and job creation.
For more news on economy, click here.
