The World Bank is gearing up for the second phase of its budget support program for Egypt, with plans to disburse funds this year following the successful completion of the first phase in mid-2024, valued at $500 million, according to Asharq.
According to Stefan Jembert, the World Bank’s Regional Director for Egypt, Yemen, and Djibouti, while the precise value of the second tranche remains undisclosed, the overall budget support program amounts to $3 billion. This initiative is a cornerstone of a much larger $6 billion financial package unveiled by the World Bank in March 2024. Of this total, half of the funds are dedicated to fortifying Egypt’s national budget, while the remaining portion will be strategically allocated to empower the private sector, stimulating economic growth and enhancing resilience across critical industries.
Jembert also revealed that in June 2024, the World Bank approved $700 million in financing for Egypt to help increase private sector participation, enhance macroeconomic resilience, and promote environmentally sustainable growth. This funding includes $200 million that is contingent on securing complementary financing from other international development partners.
World Bank’s Multi-Billion Dollar Partnership with Egypt Focuses on Green Growth and Private Sector Development
According to Jembert, the World Bank is currently managing between $6 billion and $7 billion in projects across Egypt. These initiatives form part of a broader partnership agreement signed two years ago between the World Bank and the Egyptian government. The programs focus on three main pillars: expanding private sector involvement, human development—including projects in health, education, and social protection (such as the “Takaful and Karama” program)—and advancing green transformation efforts. Key green initiatives include improving air quality in Cairo and modernizing Egypt’s transportation sector.
In March 2024, the World Bank also announced a $6 billion financing package to support Egypt over the next three years, with $3 billion directed towards economic reform and another $3 billion designated for private sector empowerment. This is part of the Bank’s long-term commitment to assisting Egypt’s broader development goals, including sustainable growth and financial stability.
Strengthening Egypt’s Private Sector and Supporting Inclusive Development
Jembert further emphasized the importance of the World Bank’s ongoing partnership with Egypt’s Small and Medium Enterprises Development Authority (SMEDA), which has been instrumental in supporting 200,000 beneficiaries with $50 million in funding. The majority of this support has gone to women and young entrepreneurs, highlighting the Bank’s commitment to fostering inclusive economic growth and empowering underserved communities.
