Egypt’s partnership with the World Bank (WB) has evolved over decades from a simple lender–borrower relationship into a strategic collaboration that drives economic reform, infrastructure development, social protection, and climate action.
The recent visit of WB President, Ajay Banga, to Cairo has highlighted the depth and significance of this co-operation.
Mr Banga met President Abdel Fattah El Sisi, Prime Minister Moustafa Madbouli, and Foreign Minister Badr Abdel-Aati, encounters during which he discussed sustainable development, private-sector growth, job creation, and economic resilience.
Economic reform
Egypt is one of the WB’s largest partners in the Middle East and North Africa.
Over the past decade, co-operation has expanded significantly, with the Bank supporting Egypt’s 2016 economic reform programme.
These reforms aim to restore fiscal balance, improve public finance management, and stimulate economic growth, economists said.
“The WB’s mission is reconstruction, rebuilding economies, infrastructure, and institutions,” economics professor, Rashad Abdo, told The Egyptian Gazette.
“It provides both funding and technical support to improve transparency, governance, and government efficiency,” he added.
The Bank offers long-term loans, often extending up to 30 years, at low interest rates.
This model allows Egypt to finance projects that have direct impacts on citizens’ daily lives, such as power plants, water networks, sanitation systems, roads, and bridges.
Sherine al-Shawarby, a professor of economics at Cairo University and a former senior WB economist, explained that the Bank’s financing comes in two main forms: reform-based loans tied to policy measures, and project-based investment loans for specific development initiatives.
Funds are released in stages, she said, based on verified project progress.
“Beyond funding, the WB provides technical assistance, programme design support, and evaluation mechanisms,” al-Shawarby told this newspaper.
“Governments can use these tools to monitor performance, identify weaknesses, and refine project implementation,” she added.
In infrastructure projects, the Bank also advises on public-private partnerships (PPP), helping governments implement initiatives alongside private-sector partners, following global best practices.
Al-Shawarby noted that under the leadership of James Wolfensohn, the ninth president of the WB, the institution expanded its focus beyond poverty alleviation alone to include improving overall living standards and broad-based welfare.
Investing in people
Human development is a cornerstone of Egypt-WB collaboration. Bank-supported programmes expand social protection, improve healthcare, and enhance education.
This ensures that economic reforms benefit all Egyptians, particularly the most vulnerable, professor al-Shawarby said.
“Microfinance and job creation are closely linked,” she added.
She noted that sustainable development depends on generating employment and raising incomes, while social safety nets complement growth, ensuring no one is left behind.
The WB’s Country Partnership Framework (CPF) for Egypt (2023–2027), she said, focuses on fostering green, resilient, and inclusive growth by supporting private sector job creation, enhancing human capital, and strengthening economic resilience.
The framework, aligned with Egypt’s Vision 2030, aims to reduce poverty and boost prosperity.
Climate action, green energy
Climate change has become a key focus of Egypt-WB co-operation. The Bank supports renewable energy projects, irrigation initiatives, and climate adaptation programmes that reduce emissions, create jobs, and enhance water and food security.
WB support also mobilises private-sector investment for green projects, aligning with Egypt’s goal to become a regional hub for renewable energy and sustainable finance.
Infrastructure and connectivity
Infrastructure remains a central area of collaboration. The WB helps improve transport, logistics, and urban services, reducing congestion, lowering emissions, and connecting citizens to economic opportunities.
Water and sanitation projects have increased access and improved quality in rural and peri-urban communities.
“These investments directly enhance living standards and strengthen the country’s capacity to grow sustainably,” professor al-Shawarby said.
Empowering private sector
Private-sector development is another critical pillar of Egypt-WB cooperation. The Bank helps streamline regulations, promote financial inclusion, and support SMEs, women-led businesses, and digital start-ups.
Al-Shawarby highlighted the importance of private-sector participation for sustainable growth and job creation.
“This participation complements public-sector initiatives and maximises the impact of reforms,” she said.
Knowledge transfer
One of the most valuable aspects of Egypt’s partnership with the WB is access to international expertise.
The Bank serves as a global reservoir of knowledge, offering comparative experiences, research, and case studies from countries that have successfully achieved sustained development.
Through technical support and evaluation, the WB helps Egypt design effective programmes, monitor implementation, and improve outcomes.
This extends to social programmes like Takaful and Karama, where the Bank provided technical assistance and evaluation support, ensuring that resources reach the most in need efficiently, professor Abdo said.
Egypt’s collaboration with the WB goes far beyond financial assistance. It is a strategic partnership that fosters sustainable development, social inclusion, and economic resilience.
The recent visit of Mr Banga underscores international confidence in Egypt’s reform path.
Both sides are committed to deepening co-operation in job-creation, digital transformation, climate-smart solutions, and sustainable infrastructure, economists said.
With strong political support, a diverse project portfolio, and a shared vision for inclusive growth, the Egypt-WB partnership will continue to shape the country’s development for years to come, they added.
