World Bank headquarters in Washington, D.C., United States. Offical website.
The package includes a $200 million credit guarantee from the United Kingdom government.
The financing comes as Egypt continues implementing economic reforms following two years of successive external shocks and amid renewed regional uncertainty linked to the ongoing conflict in the Middle East.
According to the World Bank, reforms including exchange-rate unification, tighter fiscal discipline, and tax policy and administration measures have helped rebuild external buffers, ease inflationary pressures, improve investor sentiment, and gradually support economic recovery.
The new operation, titled Generating Resilience, Opportunities, and Welfare for a Thriving Egypt II (GROWTH II), is designed to support policies that encourage job creation, improve the sustainability of public finance, and advance environmentally sustainable growth.
Stéphane Guimbert, the World Bank’s division director for Egypt, Yemen, and Djibouti, said Egypt is pursuing an “ambitious reform agenda” to unlock private investment, create jobs, and protect vulnerable households despite challenging regional and global conditions.
He added that the financing would support efforts to build a “more competitive, resilient and sustainable economy” capable of withstanding future shocks.
Deputy Minister of Foreign Affairs for International Cooperation Samar Al Ahdal described the financing as reflecting the strong partnership between Egypt, the World Bank Group, and the United Kingdom, saying the reforms supported under the programme would help create better jobs, protect vulnerable groups, and promote inclusive growth.
UK Ambassador to Egypt Mark Bryson-Richardson said London was proud to support Egypt’s reform programme through the guarantee agreement in partnership with the World Bank Group.
The financing package supports reforms aimed at strengthening the governance of state-owned enterprises, reducing barriers to private investment, and enforcing fair competition rules.
It also backs measures to improve domestic revenue mobilization, enhance the efficiency of domestic debt markets, and lower government borrowing costs.
On the social front, the programme seeks to expand protection for vulnerable households by automatically enrolling beneficiaries of the Takaful and Karama cash support programmes into Egypt’s Universal Health Insurance System.
The operation also supports Egypt’s green transition through measures to improve monitoring of greenhouse gas emissions, develop carbon credit markets, encourage demand-driven clean energy investments, and strengthen the financial sustainability of the electricity and water sectors.
The World Bank said the financing represents the second operation in a series of three-part concessional financing offered on terms more favourable than market rates.
The programme is also aligned with broader international support for Egypt’s reform agenda, including cooperation with the International Monetary Fund and the European Union, with the Asian Infrastructure Investment Bank expected to provide parallel financing.
The financing is consistent with the World Bank Group’s Country Partnership Framework for Egypt for 2023–2027, which focuses on supporting green, resilient, and inclusive development through stronger private sector participation, improved human capital outcomes, and greater resilience to economic shocks.
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