The World Bank has sanctioned $700 million to support Egypt’s private sector, economic resilience, and green growth initiatives. This Development Policy Financing (DPF) aims to address immediate economic challenges while promoting structural reforms for private sector expansion and a green transition.
Key Objectives:
- Economic Resilience: Strengthening governance for state-owned enterprises and enhancing the business environment.
- Green Transition: Scaling up renewable energy and improving efficiency in electricity, water, and sanitation sectors.
- Competitiveness: Empowering the Egyptian Competition Authority and launching a voluntary carbon credit market framework.
Egypt’s Minister of International Cooperation, Rania Al-Mashat, emphasized the government’s commitment to creating a competitive, green, and private sector-led economy through ambitious reforms. This DPF, the first in a series of three, aligns with the World Bank’s three-year $6 billion support program for Egypt, announced in March. Stephane Guimbert, World Bank Country Director for Egypt, Yemen, and Djibouti, noted that these reforms are vital for sustainable job creation and climate resilience, crucial for Egypt’s prosperity.
The DPF aligns with Egypt’s Sustainable Development Strategy Vision 2030 and the National Climate Change Strategy 2050. The initiative integrates research from the World Bank Group’s Country Private Sector Diagnostic and the Country Climate and Development Report. The financing package includes $200 million contingent on complementary funding from development partners, reinforcing Egypt’s development priorities and national strategies.