World Bank grants Egypt $700m for sustainable growth, green transition – Dailynewsegypt
The World Bank has approved a $700m Development Policy Financing (DPF) package for Egypt, aimed at fostering sustainable growth, increasing private sector involvement, and bolstering the country’s economic resilience.
The “Generating Resilience, Opportunities, And Welfare for a Thriving Egypt” DPF is designed to assist Egypt in tackling immediate economic challenges while implementing structural reforms to encourage private sector growth, enhance macroeconomic and fiscal stability, and facilitate a green transition. This includes expanding renewable energy sources and improving efficiency in the electricity, water, and sanitation sectors.
Minister of International Cooperation and Governor of Egypt at the World Bank, Dr. Rania A. Al-Mashat, said, “The Government of Egypt is undertaking ambitious economic and structural reforms aimed at creating a more competitive, green and private sector-led economy. This DPF with the World Bank helps advance policy reforms on three of its top national priorities: building macro-fiscal resilience, enhancing economic competitiveness and improving the business environment, and supporting the green transition.”
The DPF, the first in a series of three operations, will support key reforms. These include:
- Strengthening the governance framework for state-owned enterprises
- Empowering the Egyptian Competition Authority
- Enhancing domestic revenue mobilization
- Reducing electricity distribution system losses
- Improving climate adaptation capacity and the financial sustainability of the water and sanitation sectors
- Scaling up renewable energy
- Establishing a voluntary carbon credit market regulatory framework
This newly approved DPF is part of the World Bank Group’s intended 3-year $6bn program of support for Egypt announced in March 2024. The program aims to stimulate private sector growth and job creation, enhance human capital outcomes, foster climate resilience, and strengthen economic management.
World Bank Country Director for Egypt, Yemen & Djibouti, Stephane Guimbert, emphasised the importance of the reforms, stating, “Creating good, sustainable jobs and building resilience to climate change are critical for the current and future prosperity of Egypt’s citizens. Reforms supported by this operation are an important step towards a more sustainable, inclusive economy.”
The DPF aligns with the World Bank’s Egypt Country Partnership Framework for FY2023-FY2027, which prioritizes private sector development. It is also informed by recent World Bank Group analytical work on Egypt, including the Country Private Sector Diagnostic and the Country Climate and Development Report. Of the $700, $200m is contingent on complementary financing from development partners.
The initiative is consistent with Egypt’s development priorities and national strategies, including the Sustainable Development Strategy Vision 2030, the State Ownership Policy, the National Climate Change Strategy 2050, and the Nexus of Water Food and Energy.