Regional Director announcedWorld Bank In Egypt, Yemen and Djibouti, Stephane Gimbert said that Egypt will receive additional funding worth $300 million, as part of a broader development support package worth a total of $1 billion, to help deal with the repercussions of the war between… Iran and an environment of regional instability.
Gimbert explained that the package consists of $800 million provided by the World Bank, in addition to a British guarantee worth $200 million, and aims to support the creation of private sector-led job opportunities, enhance macroeconomic stability, and advance the path of green transformation in the country.
He pointed out that the World Bank’s Board of Directors approved the package on Friday, noting that the financing came on easy terms compared to commercial markets, with an interest rate of approximately 6% and a repayment period extending to 30 years, with a grace period before repayment begins.
According to the international official, this package comes within a three-phase program, where the first phase was approved in June 2024, while the third phase is expected to be implemented next year, with the participation of other international financing institutions such as the Asian Infrastructure Investment Bank.
He also pointed out that Egypt is witnessing a gradual improvement in private investment, but it is still below the levels of similar economies, stressing that enhancing foreign direct investment and structural reforms may raise the growth rate to about 6% annually in the medium term, which may allow the creation of approximately two million job opportunities annually.
Regarding social protection, Gimbert praised cash support programs such as “Solidarity and Dignity,” considering that they are more targeted at poor groups compared to general support for bread, especially in periods of crises.
