World Bank Approves $1 Billion Financing Package for Egypt to Support Jobs and Economic Resilience
The World Bank Group has approved a new $1 billion financing package for Egypt aimed at supporting private sector-led job creation, strengthening macroeconomic stability, and advancing the country’s transition toward a greener economy. The financing package also includes a $200 million credit guarantee provided by the United Kingdom.
The funding comes as Egypt continues implementing a broad economic reform agenda that has helped stabilize the economy following two years of consecutive external shocks. Measures including exchange rate unification, tighter fiscal discipline, and structural reforms in tax and administrative policies have contributed to rebuilding foreign reserves, easing inflationary pressures, improving market confidence, and supporting a gradual recovery in economic growth.
According to the World Bank, ongoing geopolitical tensions in the Middle East continue to create additional economic pressures and uncertainty, making the continuation of reforms increasingly critical.
The financing, known as the “Building Resilience, Unlocking Opportunities, and Fostering Prosperity in Egypt” program, represents the second phase of the World Bank’s Development Policy Financing framework for Egypt. It is designed to support policies focused on creating more employment opportunities, improving fiscal sustainability, and accelerating the country’s green transformation.
Stefan Gimbert, Regional Director for Egypt, Yemen, and Djibouti at the World Bank, said Egypt is moving forward with an ambitious reform agenda aimed at encouraging private investment, creating jobs, and strengthening social protection despite a challenging global environment. He noted that the financing supports key reforms intended to build a more competitive, resilient, and sustainable economy capable of withstanding current and future shocks.
Sahar El Ahdal, Egypt’s Deputy Foreign Minister for International Cooperation, described the financing as a reflection of the strong strategic partnership between Egypt, the World Bank Group, and the United Kingdom. She stated that the reforms supported under the program are expected to create better job opportunities, strengthen protection for vulnerable groups, and promote inclusive and sustainable growth.
Mark Bryson-Richardson, the UK Ambassador to Egypt, said the United Kingdom is proud to support Egypt’s reform program through the credit guarantee mechanism in partnership with the World Bank, adding that the initiative would help unlock investments, reinforce economic stability, and support sustainable growth.
The financing package supports measures aimed at improving governance of state-owned enterprises and removing barriers to private investment and growth, including enhancing fair competition policies. It also backs reforms to strengthen domestic revenue mobilization, improve the performance of local debt markets, and reduce government financing costs.
In parallel, the program includes social protection measures targeting vulnerable groups by ensuring that beneficiaries of the Takaful and Karama social support programs are automatically enrolled in Egypt’s comprehensive health insurance system, improving access to essential services amid rising prices and economic volatility.
The initiative also supports Egypt’s green economy transition through enhanced greenhouse gas emissions monitoring systems, development of carbon credit markets, expansion of clean energy markets, and measures to improve the financial sustainability of the electricity and water sectors.
The financing aligns with the World Bank Group’s Country Partnership Framework for Egypt covering fiscal years 2023–2027, which focuses on promoting green, resilient, and inclusive development through stronger private sector job creation, improved human capital outcomes, and enhanced resilience against economic shocks. It also supports Egypt’s Vision 2030, the State Ownership Policy, and the National Climate Change Strategy 2050.