The World Bank revealed today plans to provide more than $6 billion of support to Egypt over the next three years. The World Bank restated its commitment to the long-term strategic partnership with Egypt. It also aims to support the measures the country is taking for its economic recovery and sustainable growth.
Supporting development priorities
The World Bank’s partnership with the Government of Egypt seeks to improve the lives of Egyptians and provide them with more opportunities. The program supports Egypt’s priority areas, which include:
- Private sector growth and job creation
- Enhancing human capital outcomes through inclusive social protection, health and education systems
- Fostering resilience through climate-smart solutions and strengthened economic management
This also includes a focus on protecting and investing in the most marginalized and vulnerable groups who are most impacted by the economic situation. Therefore, in the next three years, the World Bank will provide $3 billion for financial support to Egypt’s government programs. It also intends to provide another $3 billion for the private sector, subject to Board approval.
Empowering the private sector
In support of the government’s development priorities, the World Bank programs will focus on increasing opportunities for private sector participation in the economy. This includes the government’s asset monetization program. Moreover, it aims to bolster the governance of state-owned enterprises and improve the efficiency and effectiveness of public resource management. Therefore, the World Bank will keep exploring opportunities to support impactful private-sector investments.
Climate action and social protection
In alignment with Egypt’s climate goals, the World Bank aims to build on the 2022 Country Climate and Development Report and the government’s Nexus for Water, Food, and Energy platform to support climate action in Egypt. Moreover, it will continue to support the most vulnerable groups, in particular through the government’s Takaful and Karama programs.
Structural reforms
When it comes to structural reforms, the World Bank introduced a Development Policy Financing (DPF) program that is anchored on three main pillars:
- Enhancing economic competitiveness and improving the business environment
- Building macroeconomic resilience
- Supporting the green transition
Moreover, the DPF will support Egypt’s government in implementing the State Ownership Policy and reforms that level the playing field and support private sector growth. Anchored within the Country Partnership Framework (2023-2027), endorsed in March 2023, these initiatives aim to chart a path towards sustainable and inclusive growth.
Read: EU commits $8 billion aid package to Egypt for migration management, trade expansion
Operational portfolio
The World Bank’s current operational portfolio in Egypt surpasses $8 billion. It comprises contributions from various arms including the International Bank for Reconstruction and Development ($6 billion), the International Finance Corporation ($1.9 billion), and the Multilateral Investment Guarantee Agency ($0.5 billion). This substantial investment underscores the Group’s confidence in Egypt’s potential and its enduring commitment to the nation’s development journey.
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