The World Bank (WB) Group has approved 1 billion dollars in financing to support Egypt’s efforts to boost private sector-led job creation, strengthen macroeconomic and fiscal stability, and advance the transition toward a green economy.
The financing package includes a 200-million-dollar credit guarantee provided in advance by the United Kingdom.
The WB said Egypt has implemented a series of reforms that have helped the country move toward greater stability following two years of successive external shocks.
Measures such as exchange rate unification, fiscal discipline, and key tax and administrative reforms have contributed to rebuilding external reserves, easing inflationary pressures, improving market confidence, and supporting a gradual economic recovery.
However, it noted that ongoing conflict in the Middle East continues to generate additional pressures and uncertainty, making the continuation of reforms increasingly important.
The World Bank’s Generating Resilience, Opportunities, and Welfare for a Thriving Egypt (GROWTH) Development Policy Financing (DPF) programme forms part of the second phase of development policy financing programmes.
It aims to support policies that expand job opportunities, enhance sustainable public financial management, and accelerate the transition to a green economy.
WB Regional Director for Egypt, Yemen and Djibouti Stephane Guimbert said Egypt is pursuing an ambitious reform agenda aimed at encouraging private investment, creating jobs, and strengthening social protection in a challenging global environment.
He added that the financing supports key measures to build a more competitive, resilient, and sustainable economy capable of withstanding current and future shocks.
Egypt’s Deputy Foreign Minister for International Co-operation Samar El-Adel said the financing reflects the strength of the strategic partnership between Egypt, the World Bank Group, and the United Kingdom.
She noted that the reforms under the program will help create better job opportunities, protect vulnerable groups, and ensure more inclusive and sustainable growth.
UK Ambassador to Egypt Mark Bryson-Richardson said the United Kingdom is proud to support Egypt’s reform program through the credit guarantee in partnership with the World Bank, adding that the operation will help unlock investment, strengthen economic stability, and support sustainable growth for the benefit of the Egyptian people.
The financing package supports measures aimed at improving the governance of state-owned enterprises, removing barriers to private investment and growth, and strengthening fair competition.
It also promotes reforms to enhance domestic revenue mobilisation, improve debt market efficiency, and reduce government borrowing costs.
In parallel, the programme aims to strengthen social protection by ensuring that beneficiaries of the Takaful and Karama programmes are automatically enrolled in the universal health insurance system, improving access to essential services and enhancing resilience to price shocks.
It further supports Egypt’s green transition through improved greenhouse gas monitoring systems, development of carbon credit markets, promotion of clean energy demand-driven markets, and enhanced financial sustainability in the electricity and water sectors.
The financing is the second in a series of three development policy financing operations provided by the World Bank Group on concessional terms.
It aligns with efforts by other international partners, including the International Monetary Fund and the European Union, in support of Egypt’s reform program.
The Asian Infrastructure Investment Bank is also expected to provide complementary financing.
The operation is consistent with the World Bank Group–Egypt Country Partnership Framework for FY2023–2027, which aims to support inclusive, resilient, and green development through private sector growth, improved human capital outcomes, and greater resilience to shocks.
It also aligns with Egypt’s national development priorities, including the National Narrative for Economic Development, Egypt Vision 2030, the State Ownership Policy, and the National Climate Change Strategy 2050.
