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. This achievement was announced by Rania Al-Mashat, Egypt’s minister of International Cooperation.
The purpose of this financial assistance is to strengthen structural reform initiatives that aim to boost the growth of Egypt’s private sector.
World Bank financing package
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.
Read more: U.S. pledges $130 million to support Egypt’s development efforts
Agreements with EU, AfDB, KDCF, AIIB
During the Egyptian-European Investment Conference, Egypt secured a EUR1 billion ($1.069 billion) agreement with the EU. This initial installment is part of a larger €5 billion allocation, which will be disbursed in the latter half of 2024. The EU 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 (KDCF) 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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