The purpose of this financial assistance is to bolster structural reform initiatives aimed at fostering the growth of the private sector.
Egypt has successfully obtained $2 billion in budget support from key development partners including the World Bank (WB), the European Union (EU), the African Development Bank (AfDB), and South Korea, according to a statement by Minister of International Cooperation (MoIC), Rania Al-Mashat.
The purpose of this financial assistance is to bolster structural reform initiatives aimed at fostering the growth of the private sector.
The World Bank Group recently approved a financing package of $700 million, with $500 million from the World Bank and $200 million from other partners. This funding is part of the World Bank’s commitment to provide $6 billion over three years to support Egypt’s economic and structural reforms.
Out of the $6 billion, $3 billion will go to the government and $3 billion will be used to empower the private sector. The loan has a 35-year repayment period, including a 5-year grace period.
Al-Mashat highlighted that Egypt has secured a €1 billion ($1.069 billion) agreement with the European Union during the Egyptian-European Investment Conference.
This initial installment, part of a larger €5 billion allocation, will be disbursed in the latter half of 2024. The European Union has committed to providing macroeconomic and budgetary support, with the remaining €4 billion set to be released between 2025 and 2027.
Egypt signed an agreement with the AfDB worth $131million to boost private sector. This came during the visit of Al-Mashat to the State of Kenya to attend the annual meetings of the AfDB during this June.
Additionally, the Korean Economic Development Cooperation Fund provided $100 million, which came on the sidelines of the Korea-Africa Summit.
Al-Mashat added that Negotiations are currently underway with the Asian Infrastructure Investment Bank to provide financing worth $300 million.
