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World Bank to support Egypt with $6bn for economic recovery

World Bank to support Egypt with $6bn for economic recovery
March 18
20:44 2024

The World Bank Group says it will provide more than $6 billion of support to Egypt over the next three years for economic recovery.

In a statement on Monday, World Bank said the support includes $3 billion for financial backing of government programs and $3 billion for the private sector (including mobilisation) – subject to board approval.

According to the statement, World Bank is committed to its long-term strategic partnership with Egypt and supports the measures the country is taking for its economic recovery and restoring a sustainable path for inclusive growth.

The Bretton Woods institution said its partnership with the government of Egypt aims at building better lives and opportunities for people.

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“Our programs support Egypt in the priority areas of private sector growth and job creation,” World Bank said.

“Enhancing human capital outcomes through inclusive social protection, health, and education systems; and fostering resilience through climate-smart solutions and strengthened economic management.

“This includes a focus on protecting and investing in the poorest and most vulnerable, who are hardest hit by economic shocks.

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“Over the coming three years, the World Bank Group intends to provide more than US$6 billion of support to Egypt, including US$3 billion for financial support to Government’s programs and US$3 billion for the private sector (including mobilisation) – subject to Board approval.

“In support of the government’s development priorities, programs will focus on increasing opportunities for private sector participation in the economy, including through the government’s asset monetisation program, strengthening the governance of state-owned enterprises, and improving the efficiency and effectiveness of public resource management.

“The World Bank Group will continue to explore opportunities for guarantees to support impactful private sector investments.”

WORLD BANK SUPPORTS EGYPT’S STRUCTURAL REFORMS

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The World Bank said it will support the most vulnerable in Egypt, through the government’s Takaful and Karama program.

“With respect to structural reforms, a development policy financing (DPF) program anchored on three main pillars: (i) enhancing economic competitiveness and improving the business environment; (ii) building macroeconomic resilience; and (iii) supporting the green transition is being discussed,” World Bank said.

It said the DPF will support the government in its implementation of the state ownership policy and reforms that level the playing field to unleash private sector growth.

This program of knowledge and financing, according to World Bank, comes under the umbrella of the institution’s partnership framework with Egypt (2023-2027) which was endorsed by the board of directors in March 2023.

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The framework was launched in Cairo in May 2023.

The World Bank said it currently has an operational portfolio of over $8 billion in Egypt, which comprises $6 billion from the International Bank for Reconstruction and Development, $1.9 billion from the International Finance Corporation, and $0.5 billion from the Multilateral Investment Guarantee Agency.

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