Egypt Secures Over $2 Billion in Financial Support to Bolster Private Sector Growth
CAIRO – In a significant economic development, Egypt has successfully secured a robust financial package of $2 billion from prominent international development partners, including the World Bank (WB), the European Union (EU), the African Development Bank (AfDB), and South Korea. The announcement, made by Egypt’s Minister of International Cooperation, Rania Al-Mashat, highlights a concerted effort to strengthen structural reforms designed to invigorate the nation’s private sector.
World Bank’s Significant Contribution
The World Bank Group has committed to a substantial financing package amounting to $700 million. This initiative includes $500 million directly from the World Bank and an additional $200 million from affiliated partners. This funding forms part of a broader pledge by the World Bank to deliver $6 billion over a three-year period to support Egypt’s economic and structural reform agenda. Notably, $3 billion of this tranche will be allocated to the Egyptian government, while the remaining $3 billion will focus on empowering the private sector. The loan agreement stipulates a 35-year repayment term, including a five-year grace period.
European Union and Additional Agreements
During the Egyptian-European Investment Conference, Egypt finalized a pivotal €1 billion ($1.069 billion) agreement with the EU, marking the initial allocation from a more extensive €5 billion support plan scheduled for disbursement starting in the latter half of 2024. The EU’s financial engagement is aimed at providing crucial macroeconomic and budgetary support, with the remaining €4 billion expected to be released between 2025 and 2027.
In another development, the AfDB has approved a $131 million agreement aimed at bolstering Egypt’s private sector. This accord was finalized following Minister Al-Mashat’s visit to Kenya for the AfDB’s annual meetings in June.
Furthermore, an additional $100 million has been secured from the Korean Economic Development Cooperation Fund (KDCF), established during the Korea-Africa Summit. Minister Al-Mashat also disclosed that negotiations are advancing with the Asian Infrastructure Investment Bank to secure an additional $300 million in financing.
These significant financial commitments underscore a robust international endorsement of Egypt’s economic reform initiatives and its ongoing efforts to stimulate private sector growth.
For further details on the evolving financial landscape, visit Economy Middle East.
Source: Economy Middle East
