CAIRO - 8 May 2026: The World Bank Group has approved a new $1 billion financing package for Egypt aimed at supporting private sector-led growth, strengthening economic resilience, and advancing the country’s green transition.
The package includes a $200 million guarantee from the United Kingdom government and comes as Egypt presses ahead with economic reforms following successive external shocks and ongoing regional tensions.
The financing programme, known as “Generating Resilience, Opportunities, and Welfare for a Thriving Egypt II (GROWTH II),” is designed to support reforms focused on job creation, fiscal sustainability, and environmentally sustainable growth.
According to the World Bank, Egypt’s recent reform measures, including exchange-rate unification, fiscal tightening, and tax policy reforms, have contributed to rebuilding external buffers, easing inflation pressures, and improving investor sentiment.
The World Bank’s division director for Egypt, Yemen, and Djibouti, Stéphane Guimbert said Egypt is moving forward with an ambitious reform agenda aimed at boosting private investment, creating jobs, and protecting vulnerable groups despite regional and global challenges.
He added that the new financing would help Egypt build a more competitive and resilient economy capable of withstanding future shocks.
Egypt’s deputy minister of foreign affairs for international cooperation, Samar Al Ahdal described the agreement as a reflection of the strong partnership between Egypt, the World Bank Group, and the United Kingdom, saying the programme would support inclusive growth and better employment opportunities.
Meanwhile, UK Ambassador to Egypt Mark Bryson-Richardson said the UK is proud to support Egypt’s reform programme through the guarantee agreement signed in partnership with the World Bank.
The financing package supports reforms aimed at improving governance of state-owned enterprises, reducing barriers to private investment, and promoting fair competition.
It also includes measures to strengthen domestic revenue mobilisation, improve debt market efficiency, and reduce government borrowing costs.
On the social side, the programme seeks to expand social protection by automatically enrolling beneficiaries of the Takaful and Karama cash support programme into Egypt’s Universal Health Insurance System.
The operation further supports Egypt’s climate and sustainability goals through initiatives focused on greenhouse gas monitoring, carbon credit markets, clean energy investments, and improving the financial sustainability of the electricity and water sectors.
The World Bank noted that the financing represents the second phase of a three-part concessional financing programme aligned with Egypt’s broader reform agenda and supported by international partners including the International Monetary Fund and the European Union.
Comments
Leave a Comment