CAIRO - 16 April 2024: The Minister of International Cooperation, Rania Al-Mashat discussed the ongoing efforts to develop the World Bank Group’s business model, stressing the importance of these efforts in expanding the scope of development financing in light of the enormous need for financing to meet the goals of the World Bank Group, including sustainable development, as well as maximizing the World Bank’s role in confronting poverty, promoting shared prosperity, and increasing resilience to shocks.
The Minister also discussed topics including the development policy financing program, cooperation in various fields such as attracting foreign investment and promoting industrial development, and support for social protection initiatives. The discussions covered climate action, women's empowerment, transportation sector involvement, and technical support in financial management.
The World Bank Group has committed a $6 billion financing package to Egypt over three years, focusing on economic reform and private sector empowerment. The ongoing development cooperation portfolio between Egypt and the World Bank Group exceeds $8 billion, including $6 billion from the International Bank for Reconstruction and Development, $1.9 billion from the International Finance Corporation, and $500 million in guarantees to the private sector from the Multilateral Investment Guarantee Agency.
Al-Mashat also discussed regional and international challenges and their impact on developing countries and emerging economies.
They discussed cooperation with the World Bank in various fields, especially its provision of technical support to the government in preparing many diagnostic reports and studies, especially the study on foreign direct investment in Egypt, as well as the national strategy for industrial development and trade promotion.
This is in addition to examining the ongoing efforts within the framework of strengthening the role of the private sector and creating a supportive and attractive economic environment for investments, through the World Bank providing technical support to the Information and Decision Support Center of the Egyptian Cabinet to implement the state ownership policy document that was launched in 2022, and the management of state-owned companies. This also includes the role of the World Bank in supporting economic and structural reforms, which encourages foreign direct investments, and discussing successful experiences of similar countries to benefit, despite regional and international challenges.
The Minister stressed the vital role of the World Bank Group in supporting social protection efforts in Egypt through the first and second phases of the Takaful and Karama program with a value of $900 million in the form of soft development financing. This is in light of the state’s keenness to support the lowest-income groups and enhance protection efforts.
During the past year, the World Bank agreed to make available a new tranche to support the program worth $500 million, and it has already entered into force following the completion of the necessary procedures last December. This tranche is scheduled to enhance investment in human capital as it is an integral part of social development efforts, supporting vulnerable communities.
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