World Bank has approved $1.15bln in a development policy financing loan to support Egypt’s economic reform programme.
The World Bank has approved $1.15 billion in a development policy financing loan to support Egypt’s economic reform programme.
This loan is the last in the series of three annual loans—called the Fiscal Consolidation, Sustainable Energy, and Competitiveness Development Policy Financing loans – worth a total of $3.15 billion. These loans were provided over 2015 to 2017.
“We welcome the World Bank’s continuous support to the transformational economic reform agenda of the government. This program supports Egypt’s program to help improve its attractiveness for private investment, creating jobs especially for youth and women,” said Dr Sahar Nasr, Egypt’s Minister of International Cooperation who also represents Egypt on the World Bank’s Board of Governors.
This loan support’s Egypt’s home-grown inclusive reforms aimed to power job creation, ensure energy security, strengthen public finances, and enhance business competitiveness, especially for micro, small and medium-sized businesses.
“Egypt has shown sustained commitment to implementing inclusive reforms. We are privileged to support the country on its path to achieving its full potential and improving living standards for all Egyptians,”’ said Dr Asad Alam, World Bank country director for Egypt, Yemen and Djibouti.
In providing this financing, the World Bank has collaborated closely with development partners. The African Development Bank is preparing its parallel financing of $500 million while the UK has provided an additional $150 million guarantee to expand the loan amount to $1.15 billion.
“The United Kingdom is proud to join the World Bank in this strategic support to the Egyptian Government in building an economy that works for all Egyptian men and women,’’ said John Casson, UK Ambassador to Egypt.
The World Bank Task Team leaders, Ashish Khanna and Ibrahim Chowdhury, emphasised that Egypt now provides an international benchmark for comprehensive reforms in its policies to maximize finance for development, notably through mobilizing $17 billion of private investment in the energy sector.
The World Bank finances programmes and projects to help Egypt reduce poverty and boost shared prosperity. The focus of Bank support includes social safety nets, energy, transport, rural water and sanitation, agriculture and irrigation, housing, health care, job creation, and financing for micro and small enterprises.