The Egyptian Ministry of International Cooperation recently announced that the World Bank has approved soft financing for Egypt totaling $700 million. This funding aims to enhance macroeconomic stability, promote sustainable growth aligned with green transformation goals, support competitiveness, and improve the business environment in the country.
The development policy financing program is designed to assist the government in addressing short-term economic challenges, implementing structural reforms, achieving economic stability, and creating a favorable business environment conducive to private sector growth. Dr. Rania Al-Mashat, the Minister of International Cooperation and Egypt’s Governor at the World Bank Group, emphasized the government’s commitment to implementing ambitious economic and structural reforms to make the economy more competitive, supportive of private sector-led growth, and environmentally sustainable.
She highlighted that the program supports crucial reforms such as strengthening governance for state-owned institutions, enhancing domestic revenue mobilization, improving climate resilience, and promoting sustainable development. The partnership between Egypt and the World Bank aims to advance development and reform efforts in the country over the long term. The program aligns with Egypt’s national strategies and priorities, including the National Climate Change Strategy 2050, the state ownership policy document, and Egypt’s Development Vision 2030.
Stephane Gimpert, the Regional Director for Egypt, Yemen, and Djibouti at the Bank, emphasized the importance of creating sustainable jobs and building climate resilience for achieving prosperity in Egypt, particularly for vulnerable populations. The supported reforms under the financing program are seen as crucial steps towards developing a more sustainable and inclusive economy in Egypt. The program is in line with Egypt’s country partnership framework with the Bank for the fiscal period 2023-2027, which prioritizes private sector development and aligns with diagnostic studies conducted by the Bank Group on Egypt.