The World Bank Group has approved $1 billion in financing for Egypt to support private sector-led job creation, strengthen macroeconomic and fiscal resilience, and advance a green economic transition. The package includes a $200 million credit guarantee from the United Kingdom.
According to the World Bank, the funds will back reforms to boost domestic revenue mobilization, improve bond market efficiency, and reduce public financing costs. They will also support governance improvements in state-owned enterprises and reduce barriers to private investment and growth.
The financing is expected to contribute to Egypt’s green transition by enhancing greenhouse gas emissions monitoring, developing a carbon credit market, encouraging clean energy demand, and reinforcing the financial sustainability of the electricity and water sectors. The initiative aligns with the World Bank’s Country Partnership Framework for Egypt (2023–2027) and is part of the “Generating Resilience, Opportunities and Welfare for a Thriving Egypt II” program, known as GROWTH II.
This package is the second in a series of three concessional financing operations offered on more favorable terms than market rates, consistent with support from other international partners including the IMF and the EU.
Egypt has been implementing reforms following successive external shocks, entering a stabilization phase amid renewed regional uncertainty from the Middle East conflict. Measures such as exchange rate unification, stronger fiscal discipline, and tax policy reforms have helped rebuild reserves, moderate inflation, and restore market confidence. However, the World Bank noted that ongoing regional instability makes the continuation of reforms even more critical.
