The World Bank Group has approved a $1 billion financing package to support Egypt‘s transition to a greener economy, as well as efforts to boost job creation and strengthen macroeconomic and fiscal resilience.
The Generating Resilience, Opportunities, and Welfare for a Thriving Egypt II (GROWTH II) Development Policy Financing (DPF) includes a $200 million credit guarantee from the UK, and follows on from a series of reforms implemented by the country’s government aimed at stabilising its economy.
Over the past two years, the government has introduced reforms including exchange-rate unification, fiscal measures and changes to tax administration, however economic uncertainty persists due to the ongoing conflict in the Middle East.
Reform agenda
“Egypt is advancing an ambitious reform agenda to unlock private investment, create jobs, and protect households in a very challenging context,” commented Stéphane Guimbert, World Bank division director for Egypt, Yemen and Djibouti.
“This operation supports critical steps in that journey – helping Egypt build a more competitive, resilient and sustainable economy that can better withstand current and future shocks.”
Sustainable investment
From a sustainability point of view, the financial package seeks to improve how Egypt monitors and manages its greenhouse gas emissions, encourages the development of carbon credit markets, seeks to foster demand for clean energy, and strengthens the financial sustainability of the electricity and water sectors.
Elsewhere, in terms of social protection, beneficiaries of the Takaful and Karama social support schemes will be automatically enrolled in Egypt’s Universal Health Insurance System, improving access to healthcare for households under economic pressure.
“This financing reflects the strong partnership between Egypt, the World Bank Group and the United Kingdom,” added H.E. Samar Al Ahdal, Deputy Minister of Foreign Affairs for International Cooperation. “The reforms supported under this project will generate more and better jobs for Egyptians, protect our citizens in vulnerable situations, and ensure that growth is both sustainable and inclusive.” Read more here.
