World Bank Group announces $6 bln in financing for Egypt

Doaa A.Moneim , Monday 18 Mar 2024

The World Bank Group (WBG) has announced over $6 billion of new financing to Egypt over the next three years, the WBG said on Monday.

World Bank


The World Bank Group (WBG) announced over $6 billion in support to Egypt over the next three years, the WBG said on Monday.

The WBG will provide the funding through a comprehensive programme that includes $3 billion for governmental programmes and an additional $3 billion for the private sector, pending approval.

The World Bank Group aims to bolster Egypt's economic development and increase opportunities for private sector engagement in the economy through various initiatives.

The financial support for the government aims to promote private sector participation in the economy, particularly through the government's Asset Monetization Programme. It will also be used to enhance the governance of state-owned enterprises and improve the efficiency and effectiveness of public resource management.

The WBG will explore opportunities to provide guarantees that support impactful private sector investments.

The WBG will also support initiatives that address climate change, building on the 2022 Country Climate and Development Report and the government's Nexus for Water, Food, and Energy platform.

The WBG remains committed to supporting the most vulnerable segments of society, particularly through the government's Takaful and Karama social protection programme.

Additionally, a Development Policy Financing (DPF) programme is currently being discussed, anchored on three main pillars: enhancing economic competitiveness and improving the business environment, building macroeconomic resilience, and supporting the green transition.

The DPF will assist the government in implementing the State Ownership Policy and reforms aimed at fostering private sector growth.

This comprehensive programme falls under the Country Partnership Framework with Egypt for 2023-2027, which was launched last year.

The WBG's current portfolio in Egypt exceeds $8 billion, with funds allocated from the International Bank for Reconstruction and Development, the International Finance Corporation, and the Multilateral Investment Guarantee Agency.

This substantial financial commitment underscores the WBG's dedication to supporting Egypt's development agenda and fostering sustainable economic growth in the country.

The WBG’s announcement is the latest influx of international financing for Egypt as it is dealing with a hard currency crunch.

Recently, the IMF expanded its Extended Fund Facility (EFF) loan programme for Egypt from $3 billion to $8 billion over four years.

Moreover, the EU has pledged more than $8 billion in loans and financing to support the country’s economy amid the repercussions of the wars in Gaza and Sudan

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