Egypt’s Ministry of Investment and International Cooperation inked on Wednesday an agreement with the World Bank worth $500 million to fund the second phase of the Takafol and Karama socials safety programmes.
Prime Minister Mostafa Madbouly and Minister of Social Solidarity Ghada Wali attended the signing ceremony.
Minister of Investment Sahar Nasr said that the agreement is part of a portfolio worth $8 billion between Egypt and the World Bank.
“Takafol and Karama is a vital project and one of the important indicators that the World Bank is following as part of its human capital investment indicator,” Nasr said.
The minister said that the first phase of the programme covered 1 million families and 9.5 million citizens, 88 percent of whom were women. She said that the new agreement would help boost the social safety net for an additional three years and reach 12.8 million citizens.
Meanwhile, Minister of Social Solidarity Wali said that the ministry is working on channelling the Takafol and Karama with the conditional subsidies.
“That agreement aims to expand the programme’s activities and transform it from a cash subsidy to a productive subsidy,” Wali said, adding that the programme's first phase achieved all its objectives.
The government is seeking to offer a simplified long-term fund that exceeds 35 years with a five-year grace period.
The agreement is in line with the discussions between President Abdel-Fattah El-Sisi and the new chairman of the World Bank, and is part of of a series of measures that should boost Egypt’s rank on the World Bank’s indicator, Nasr said.
Regional director of the World Bank Marina Wes said that the bank continues its commitment to support Egypt’s human capital development efforts and job opportunities offering which are essential for the economic reform programme to succeed.