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  • Monday, 18 March 2024

In Continuation of Egypt’s Efforts to Implement Economic and Structural Reform Measures and Empower the Private Sector | The World Bank Group Announces a Financing Package for the Egyptian Economy worth $6 billion for the Next Three Years

● Dr. Rania Al-Mashat, Minister of International Cooperation, holds a meeting with the Bank’s MD for Operations to discuss future steps for cooperation within the framework of the new package.

● $3 billion in financing to support the government’s efforts to promote economic and structural reforms, social protection, and support the transition to a green economy.

● $3 billion to support empowering the private sector, increasing its participation in development efforts, enhancing the competitiveness of the economy, and improving the business environment.

● Joint efforts with the World Bank Group to strengthen the governance of state-owned companies, implement the government offering program, and improve the efficiency and effectiveness of public resource management.

H.E. Dr. Rania Al-Mashat, Minister of International Cooperation and Governor of Egypt at the World Bank Group, announced that within the framework of the Bank’s commitment to the long-term strategic partnership with Egypt, and in implementation of efforts to support economic reform measures taken by the country to achieve economic recovery and comprehensive and sustainable growth, the World Bank Group intends to provide $6 billion in financing over the next three years, $3 billion to support the economic reform program implemented by the government, and $3 billion to empower the private sector.

Today, March 18, the Minister of International Cooperation held a meeting with Anna Bjerde, the bank’s Managing Director for Operations, where the two sides discussed 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.

The financing package provided by the World Bank Group focuses on increasing opportunities for private sector participation in the economy, and enhancing its role in development efforts, through several pillars, including implementing the government proposal program, strengthening the governance of state-owned companies, and improving the efficiency and effectiveness of public resource management.

H.E. Dr. Rania A. Al-Mashat, Minister of International Cooperation, stressed the importance of the longstanding partnership with the World Bank Group, and the implementation of the Country Partnership Framework from 2023-2027. This is focused 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, explaining that the current financing package enhances economic and structural reform efforts, empowering the private sector, and social protection for the most vulnerable groups.

The World Bank Group, in coordination with the government, intends to explore opportunities to support the private sector in Egypt, in addition to strengthening climate action efforts based on the results of the Country Climate Development Report issued in 2022, and the country platform of the “NWFE” program, the nexus of water, food, and energy projects. Joint efforts with the World Bank also aim to continue supporting the lowest-income groups through the Takaful and Karama programme.

In addition, the World Bank Group is strengthening the government’s efforts to implement structural reforms through the Development Policy Financing Program (under discussion), which is based on three axes. The first is enhancing economic competitiveness and improving the business environment, while the second axis is about enhancing the resilience of the economy. Lastly, the third axis is on stimulating the transition to a green economy. The development policy financing aims to implement the state ownership policy document and reforms that enhance equal opportunities for private sector growth, under the umbrella of the strategic partnership framework between Egypt and the World Bank Group 2023-2027.

It is worth noting that the World Bank Group’s ongoing development cooperation portfolio in Egypt amounts to more than $8 billion, including $6 billion from the International Bank for Reconstruction and Development (IBRD), $1.9 billion from the International Finance Corporation (IFC), and $500 million in guarantees to the private sector from the Multilateral Investment Guarantee Agency (MIGA).

World Bank Group Statement of Support to Egypt’s Development and Reform Efforts is available here.