The World Bank Group has approved US$1 billion in financing to support Egypt’s efforts to boost private sector–led job creation, strengthen fiscal resilience, and advance its transition to a greener economy. The package includes a US$200 million credit guarantee from the United Kingdom, reflecting strong international support for Egypt’s reform agenda.
Egypt has faced successive external shocks over the past two years but has moved into a stabilization phase through reforms such as exchange‑rate unification, fiscal discipline, and tax policy improvements. These measures have helped rebuild external buffers, moderate inflation, and improve market sentiment, though ongoing regional conflict continues to pose risks.
The new Development Policy Financing (DPF), titled “Generating Resilience, Opportunities, and Welfare for a Thriving Egypt II” (GROWTH II), supports policies to create more and better jobs, manage public finances sustainably, and promote greener growth. It builds on earlier reforms and is part of a series of three concessional financing operations offered on favorable terms.
The financing will strengthen governance of state‑owned enterprises, enforce fair competition, and reduce barriers to private investment. It also supports reforms to increase domestic revenue mobilization, improve debt market efficiency, and lower government funding costs. At the same time, it protects vulnerable Egyptians by ensuring that beneficiaries of the Takaful and Karama social safety net programs are automatically enrolled in the Universal Health Insurance System.
On the environmental front, the operation will help Egypt monitor greenhouse gas emissions, develop carbon credit markets, encourage clean energy demand, and improve the financial sustainability of the electricity and water sectors.
Aligned with the World Bank’s Country Partnership Framework for Egypt (FY2023–2027), the DPF supports Egypt’s national strategies, including Vision 2030 and the National Climate Change Strategy 2050. It also complements efforts by other international partners such as the IMF, EU, and Asian Infrastructure Investment Bank, underscoring a broad commitment to Egypt’s reform program and inclusive, sustainable development.
