World Bank’s $700m push for Egypt’s private sector

Reuters

The World Bank will provide $700 million in funding to Egypt to address short-term economic challenges.

The development policy financing (DPF) will aid in supporting the Egyptian government’s focus towards more private sector participation.

The financing will further advance structural reforms to level the playing field to support private sector growth, build macroeconomic and fiscal resilience, and facilitate Egypt’s green transition.

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“Egypt is undertaking ambitious economic and structural reforms aimed at creating a more competitive, green and private sector-led economy,” said minister of international cooperation Rania Al-Mashat.

The DPF is the first in a programmatic series of three operations that will advance key reforms including enhancing domestic revenue mobilisation, scaling up renewable energy and establishment of a voluntary carbon credit market regulatory framework.

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The newly approved DPF is part of the World Bank’s proposed three-year $6 billion programme to support Egypt, which was announced in March 2024.

Of the $700 million in the current funding, $200 million is contingent on complementary financing from development partners.