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World Bank unlocks $1 billion for Egypt’s growth, jobs, green economy push
The World Bank Group has approved $1 billion in financing for Egypt aimed at accelerating private sector–led job creation, strengthening macroeconomic and fiscal resilience, and advancing the country’s shift toward a greener economy. The package includes a $200 million credit guarantee from the United Kingdom.
Reform momentum after two years of external shocks:
Following two years of repeated external shocks, Egypt has entered a stabilization phase supported by a series of macroeconomic reforms. These include exchange-rate unification, tighter fiscal discipline, and tax policy and administration reforms.
Together, the measures have helped rebuild external buffers, ease inflationary pressures, improve market sentiment, and support a gradual recovery in growth. However, rising regional tensions in the Middle East have added new uncertainty, increasing pressure to maintain reform momentum.
GROWTH II Program targets jobs, fiscal stability, green growth:
The new financing supports the “Generating Resilience, Opportunities, and Welfare for a Thriving Egypt II” (GROWTH II) Development Policy Financing (DPF), which focuses on three core pillars: job creation, fiscal sustainability, and green economic transition.
The program is designed to support policies that expand private investment, improve public financial management, and shift Egypt toward a more sustainable growth model.
“Egypt is advancing an ambitious reform agenda to unlock private investment, create jobs, and protect households in a very challenging context,” said Stéphane Guimbert.
“This operation supports critical steps in that journey – helping Egypt build a more competitive, resilient and sustainable economy that can better withstand current and future shocks.”
UK joins World Bank support through credit guarantee:
The financing structure includes a $200 million credit guarantee from the United Kingdom, underscoring coordination between international development partners.
“This financing reflects the strong partnership between Egypt, the World Bank Group and the United Kingdom,” said Samar Al Ahdal.
“The reforms supported under this project will generate more and better jobs for Egyptians, protect our citizens in vulnerable situations, and ensure that growth is both sustainable and inclusive.”
Mark Bryson-Richardson, the UK’s Ambassador to Egypt, said “The United Kingdom is proud to support Egypt’s reform programme through this guarantee, in partnership with the World Bank Group. This operation will help unlock investment, strengthen economic stability, and support sustainable growth, for the benefit of all Egyptians.”
Private sector reform, fiscal efficiency, social protection:
The financing package backs reforms aimed at improving governance of state-owned enterprises, reducing barriers to private investment, and enforcing fair competition rules.
It also supports efforts to increase domestic revenue mobilization, enhance the efficiency of domestic debt markets, and reduce government borrowing costs.
On the social protection front, the program strengthens support for vulnerable households by linking beneficiaries of the Takaful and Karama programs to the Universal Health Insurance System, expanding access to essential services amid inflationary pressures.
Accelerating Egypt’s green transition:
A key component of the program focuses on Egypt’s transition to a greener economy. Measures include improving greenhouse gas emissions monitoring, developing carbon credit markets, stimulating demand for clean energy, and strengthening the financial sustainability of the electricity and water sectors.
Part of broader international financing framework:
The DPF is the second in a three-part concessional financing series from the World Bank Group, aligned with parallel support from the International Monetary Fund and the European Union. The Asian Infrastructure Investment Bank is also expected to provide complementary financing.
The operation aligns with the World Bank Group’s Country Partnership Framework for Egypt (FY2023–2027), which focuses on expanding private sector employment, strengthening human capital, and building resilience to economic shocks, in line with Egypt’s national development strategies and Vision 2030 goals.
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