Dr. Rania Al-Mashat:

The World Bank Presents the "Takaful and Karama" Program as a Model for National Social Protection Programs and Seeks to Apply it in Other Countries.

• $1.4 Billion in Funding from the World Bank for the Program Over 10 Years... and More Than 4.7 Million Beneficiary Families

• The Program Goes Beyond the Concept of Cash Support to Achieving Social Inclusion, Financial Inclusion, and Improving the Living Standards of Families

H.E. Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation and Egypt's Governor at the World Bank, reviewed the Egyptian experience in implementing the pioneering social protection program "Takaful and Karama" over 10 years.  

This took place in a special event on social protection during the Spring Meetings of the World Bank (WB) Group and the International Monetary Fund (IMF) held in Washington, under the title "Social Protection in the Middle East and North Africa Region: Lessons and Innovations to Protect Individuals."

This comes in light of the close partnership between the Arab Republic of Egypt and the World Bank Group, and the Bank's active role in financing many vital projects in various sectors, including social protection and infrastructure. The "Takaful and Karama" program was launched in 2015, and the World Bank has funded it with approximately $1.4 billion over 10 years.

During the meeting, H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation, highlighted the efforts of the Egyptian state in the field of social protection, and the pioneering experience of implementing the "Takaful and Karama" program since 2015 to protect the lowest-income groups and promote financial and social inclusion.

H.E. Minister Al-Mashat added that in light of the increasing economic challenges at the regional and international levels, and the successive negative impacts on the Egyptian economy, the urgent need arose to develop social safety nets capable of protecting the lowest-income groups in society, especially in times of crisis.

H.E. Dr. Rania Al-Mashat affirmed the Egyptian government's belief that providing social protection is not only a humanitarian necessity but also a cornerstone in maintaining social cohesion and economic stability. She also highlighted the development of the legislative structure for the system through the Social Security and Cash Support Fund Law, which is a significant step in the history of social protection in the country.

H.E. Minister Al-Mashat reiterated that the law transforms the "Takaful and Karama" program from a mere national initiative into a legal right guaranteed to all eligible citizens, especially the most needy groups such as the elderly, orphans, people with disabilities, and the unemployed. The law stipulates that the state is committed to providing a just and comprehensive social protection umbrella that guarantees the dignity of citizens and equal opportunities, in line with Article 8 of the Egyptian Constitution, which emphasizes that "society is based on social solidarity, and the state is committed to achieving social justice and providing means of social solidarity to ensure a decent life for citizens."

H.E. Dr. Al-Mashat touched on the strategic partnership with the World Bank in designing, implementing, and developing the "Takaful and Karama" program, where the Bank has provided development financing worth $1.4 billion over ten years, in addition to technical support from the Bank's experts. 

These experts contributed to building the capacities of government employees involved in implementing the program and digitizing cash disbursement processes through the provision of "Meeza" cards. 

They also contributed to developing monitoring and evaluation mechanisms and promoting the concept of "human development" as a priority within the program. This technical and financial support has enabled the Egyptian state to reach more than 4.6 million beneficiary families nationwide, reflecting the program's significant societal impact.

H.E. Minister Al-Mashat outlined that the World Bank presents the "Takaful and Karama" program, which is coordinated in cooperation with the Ministry of Social Solidarity, as a model for national social protection programs and seeks to apply it in other countries.

H.E. Dr. Al-Mashat mentioned that the program is divided into two main tracks: the "Takaful" track for groups capable of working but temporarily unemployed, and the "Karama" track for groups unable to work, such as people with disabilities, the elderly, and orphans. 

H.E. Dr. Al-Mashat noted that to ensure investment in the future of children, the "Takaful" program requires beneficiary families to commit to enrolling children in schools and achieving an attendance rate of no less than 80%, and for women and children to undergo periodic health check-ups three times a year. These conditions aim to break the cycle of poverty between generations by empowering children through education and health, and empowering women to support their families physically and economically.

H.E. Minister Al-Mashat emphasized that women's empowerment is a fundamental pillar of the program, as women constitute 75% of the support cardholders. The program has helped enhance women's ability to make economic decisions within their families and improve their social status, which positively reflects on the living standards of entire families. 

H.E. Dr. Al-Mashat explained that the state is moving towards making economic empowerment the ultimate goal of social protection. Work is currently underway to place "Takaful" beneficiaries who are able to work on a specific time-bound track that qualifies them to "graduate" from the program and transition to self-reliance through job opportunities or small projects.

The Takaful and Karama program has benefited 4.67 million registered families; about 17 million direct and indirect beneficiaries; 51% of families covered by the Takaful program comply with the health conditions of conducting three visits to the health unit annually; 63% of families covered by the program adhere to the education conditions of maintaining an 80% attendance rate; and 100% of beneficiaries receive cash amounts through electronic means.

In October 2023, the House of Representatives, in its plenary session, announced its approval of the President of the Arab Republic of Egypt's Decree No. 220 of 2023 regarding the approval of the draft agreement for the expansion of the Takaful and Karama cash transfer program and system building, between the Arab Republic of Egypt and the World Bank, with funding amounting to $500 million. This enhances the state's direction towards increasing efforts to protect the lowest-income groups through various programs.

It is worth noting that the Takaful and Karama program was launched in 2015 to mitigate the effects of economic reforms on the vulnerable, including the elimination of energy subsidies. The program was designed to provide cash support to those eligible with a robust system for delivering this service. Furthermore, it aims to achieve long-term development goals by promoting human capital through access to healthcare and education services.