A decade after its launch, Egypt’s Takaful and Karama programme has grown from a basic cash transfer initiative into a wider social protection platform to lift vulnerable families out of poverty. Initially introduced to support low-income households, the programme now incorporates education, healthcare, and economic empowerment.
As the programme marks its tenth anniversary this month, officials and observers are assessing its long-term impact. Recent developments—such as the adoption of digital Meeza cards and a strengthened grievance system—highlight efforts to improve efficiency and accountability.
With more than three million families reportedly exiting the programme due to improved living standards, Takaful and Karama are increasingly being viewed as tools for sustainable development, not just short-term relief.
As Egypt marks this milestone, Guimbert reflects on the programme’s journey and impact.
Ahram Online: In addition to cash transfers, how does the Takaful and Karama programme aim to improve the living conditions of marginalized communities in Egypt?
Stephane Guimbert: The Takaful and Karama programme is one of the most cost-effective ways to support vulnerable families in Egypt. Introducing digital payments via Meeza cards has improved the programme's efficiency and financial inclusion, reduced leakages, and enhanced transparency.
Community outreach and grievance systems have also supported this transparency, with six million inquiries and complaints addressed and a 99.8 percent response rate. At a time of rising poverty and significant uncertainty, the programme remains essential.
Moreover, Takaful and Karama offer a broader set of interventions aimed at strengthening human capital—what are known as cash-plus interventions. Beneficiaries can access various services, including exemption from school tuition fees, ration cards, bread subsidies, and health insurance.
The Ministry of Social Solidarity also follows up with families through social workers, providing behavioural sessions on early marriage, education, hygiene, health, women’s rights, and other topics.
Over the past decade, more than three million families have exited the programme due to improved livelihoods—an encouraging signal and a reminder of the need to continually adapt to emerging vulnerabilities. To help mitigate the impact of economic shocks, the programme could expand its coverage and preserve the real value of support in the face of inflation.
AO: In what ways does Takaful and Karama serve as a platform for broader social protection and the enhancement of human capital?
SG: With a robust social registry maintained by the Ministry of Social Solidarity, covering around 12 million households, the Takaful and Karama programme actively monitors and promotes positive education and health behaviours. Currently, at least 83 percent of school-age children attend 80 percent of school days, while 65 percent of mothers regularly visit health centres for children under six.
The programme’s unified social registry also supports other government initiatives—including subsidized healthcare and emergency aid—making it a cornerstone of Egypt’s broader social protection system. Its data-driven targeting approach, which combines proxy means testing with home verification, helps ensure fairness and accuracy in identifying beneficiaries.
Takaful and Karama now reach 4.7 million active households—about 17 million individuals—representing nearly 20 percent of Egyptian families. A nationwide digital infrastructure, including over 3,000 offices and a national ID-based system, enables real-time monitoring and continuous updates to the programme’s targeting framework.
AO: How has the World Bank’s involvement supported the design, implementation, and overall effectiveness of Takaful and Karama?
SG: We are proud to have supported the Takaful and Karama programme throughout its journey.
Over the past decade, the World Bank has committed more than $1.4 billion to the initiative—$400 million in 2015, $500 million in 2019, and another $500 million in 2022. These investments have supported the programme’s scale-up, the modernization of its payment systems, and its responsiveness to shocks, such as the COVID-19 pandemic.
The World Bank’s technical assistance has included support for social registry design, digital transformation, conditionality tracking, and grievance redress mechanisms.
We also backed rigorous impact evaluations, which found that Takaful and Karama helped reduce extreme poverty, increase household consumption, improve child nutrition, and boost school enrollment. As a knowledge institution, the World Bank has facilitated cross-country learning, sharing Egypt’s experience with Jordan, Iraq, Sudan, Yemen, and Gabon.
Co-financing from development partners—most notably the United Kingdom’s Strategic Partnership for Egypt’s Inclusive Growth Trust Fund—has further strengthened the programme. The fund has contributed to designing and rolling out key innovations, including a functional disability assessment model and “Cash Plus” interventions targeted at children and youth.
AO: Could you describe the synergy between the World Bank’s lending operations and its technical assistance and policy in supporting Takaful and Karama and how these tools/instruments complement each other?
SG: The World Bank’s financial support enabled the expansion and scale-up of the Takaful and Karama programme. Still, sustained technical and policy engagement ensured its responsiveness and adaptability to evolving needs.
Technical assistance focused on building the capacity of frontline workers, automating service delivery, and enhancing data analytics to support evidence-based decision-making—guiding the programme’s ongoing evolution.
At the policy level, the World Bank published a Human Development Public Expenditure Review to highlight cost-effective, high-impact reforms in social protection. We are also preparing a Human Capital Review and a Country Economic Report, which stress the importance of creating private-sector jobs while investing in human capital, particularly for Egypt’s most vulnerable populations.
In partnership with the Ministry of Social Solidarity, the World Bank helped institutionalize strong governance practices, including biometric verification, targeting audits, and establishing community accountability committees. This collaboration has remained flexible and responsive—supporting emergency cash top-ups during the COVID-19 pandemic and expanding the FORSA livelihoods programme to meet rising demand.
The combination of financing and technical expertise ensured that resources were translated into scalable, evidence-based, and high-impact interventions.
AO: Considering the evolving economic and social landscape in Egypt, what are some of the key challenges and opportunities for Takaful and Karama in fostering livelihoods and economic inclusion opportunities for the vulnerable?
SG: Key challenges facing the Takaful and Karama programme include rising inflation, limited formal-sector job opportunities, and persistent regional disparities—particularly in Upper Egypt, which receives 67 percent of the programme’s benefits.
Inflation continues to erode the real value of cash transfers, underscoring the need for regular benefit adjustments to maintain their effectiveness. Additionally, gender barriers and caregiving responsibilities hinder women's participation in the workforce, despite women accounting for 74 percent of programme cardholders.
To address these challenges, the government has increased Takaful and Karama’s budget by 35 percent for the upcoming fiscal year, allocating EGP 54 billion—a critical and timely boost. As Egypt creates more fiscal space, the programme remains one of the most impactful investments for supporting vulnerable families.
There are strong opportunities to leverage Takaful and Karama’s extensive data systems and local infrastructure to link households with targeted livelihood programmes. One example is the FORSA initiative, launched in 2020, which reached over 26,000 individuals by 2023 through employment pathways, microenterprise support, and vocational training.
Expanding economic empowerment efforts is essential. This will require deeper collaboration with the private sector, NGOs, and microfinance institutions to deliver scalable livelihood solutions and unlock job and entrepreneurship opportunities for beneficiary households.
Digital platforms and financial tools—such as the Meeza card and potential mobile banking integration—also offer promising channels for enabling inclusive, scalable economic growth.
AO: Looking ahead, how is Takaful and Karama evolving to address the critical need for economic inclusion and job creation among its beneficiaries? What new strategies/components are being considered?
SG: Takaful and Karama is shifting toward a graduation-based approach, offering beneficiaries cash assistance and productive assets, training, and mentorship to foster long-term self-reliance.
A key pillar of this transition is the Rural Industries Support Fund, restructured in 2024 to serve as a financing arm for rural and agricultural micro-enterprises led by programme beneficiaries—especially women and youth. The fund provides financial and non-financial support, including entrepreneurship training, feasibility studies, and market access.
The new Social Protection Law, passed in 2025, further secures the programme’s financial sustainability and expands its mandate to include temporary and emergency assistance.
Takaful and Karama should be seen as a safety net and a strategic investment in resilience. Its success depends on integration with broader labour market policies and a bold agenda focused on jobs, growth, and long-term economic security. Ultimately, decent jobs remain the most sustainable path to income, dignity, and family resilience.
Complementary programmes—such as vocational training, job placement services, and entrepreneurship support—can build skills, increase employability, and generate lasting opportunities. This holistic approach ensures that vulnerable families are protected and empowered to participate in and benefit from inclusive economic growth.
As Egypt moves from a “safety net” model to one of empowerment, we are working alongside the Government and development partners to ensure that Takaful and Karama evolves into a platform that enables sustained income generation.
We are also supporting efforts to shape a national narrative and policy framework centred on private sector-led growth that is inclusive, dynamic, and sustainable.
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