WB’s $6bn package to Egypt focus on backing poor people, private sector

20 / 03 / 2024

• Knowledge Bank
• The New Republic

The World Bank plans to provide more than $6 billion of support to Egypt over the coming three years, including $3 billion for financial support to Government’s programs, including those backing poor people, and $3 billion for the private sector (including mobilization).

In support of the Egyptian Government’s development priorities, programs will focus on increasing opportunities for private sector participation in the economy, including through the Government’s Asset Monetization Program, strengthening the governance of state-owned enterprises, and improving the efficiency and effectiveness of public resource management.

The World Bank Group will continue to explore opportunities for guarantees to support impactful private sector investments. Building on the 2022 Country Climate and Development Report and the Government’s Nexus for Water, Food and Energy platform, the World Bank Group also supports climate action in Egypt. It will also continue its support to the most vulnerable, in particular through the Government’s Takaful and Karama program.

With respect to structural reforms, a Development Policy Financing (DPF) program anchored on three main pillars; enhancing economic competitiveness and improving the business environment; building macroeconomic resilience; and  supporting the green transition is being discussed. The DPF will support the Government in its implementation of the State Ownership Policy and reforms that level the playing field to unleash private sector growth. 

This program of knowledge and financing comes under the umbrella of the Country Partnership Framework with Egypt (2023-2027) that was endorsed by the Board of Directors in March 2023. Built on extensive consultations, and aligned with various national strategies, the Framework was launched in Cairo in May 2023.

The World Bank Group is committed to its long-term strategic partnership with Egypt and supports the measures the country is taking for its economic recovery and restoring a sustainable path for inclusive growth. 

The World Bank Group’s partnership with the Government of Egypt aims at building better lives and opportunities for people. The bank’s programs support Egypt in the priority areas of private sector growth and job creation; enhancing human capital outcomes through inclusive social protection, health, and education systems; and fostering resilience through climate smart solutions and strengthened economic management. This includes a focus on protecting and investing in the poorest and most vulnerable, who are hardest hit by economic shocks.  

On March 18, Minister of International Cooperation Rania Mashat held a meeting with Anna Bjerde, the bank’s Managing Director for Operations, on the strategic partnership pillars between Egypt and the World Bank Group, and moving forward with joint cooperation programs to enhance the state’s efforts to enhance the competitiveness of the Egyptian economy, and implement Economic reform programs, within the framework of the new financing package.

Mashat stressed the importance of the longstanding partnership with the World Bank Group, and the implementation of the Country Partnership Framework from 2023-2027 which focus on promoting private sector growth, creating job opportunities, and enhancing investment in human capital through social protection systems, health and education, increasing resilience through innovative solutions in climate action and strengthening economic management.

She explained that the current financing package enhances economic and structural reform efforts, empowering the private sector, and social protection for the most vulnerable groups.