Egypt secures USD 6 bn financing package World Bank with support for green transition

A USD 6 bn package from the World Bank: The World Bank will provide Egypt with a USD 6 bn financing package over the next three years with a portion earmarked for the country’s green transition, the International Cooperation Ministry and the World Bank said in separate statements. The package is subject to the group's board approval, which is anticipated before the end of June.

The breakdown of the funding:

• USD 3 bn for the gov’t: Half of the funding will go to the government to support its economic and structural reforms, social protection programs, and its green economy transition.
• USD 3 bn for the private sector: The other half will be distributed through the group’s private sector arm, the International Finance Corporation (IFC), and will go to the private sector. The funding will be delivered in the form of equity and loans made up partly by investor funds.

That’s double what was expected: Egyptian Finance Minister Mohamed Maait had previously said that the World Bank will be extending some USD 3 bn in financing to Egypt.

Funds by summer: The World Bank is expected to disburse the first USD 1 bn by the end of June after the board approved the package, Egypt country director Stephane Guimbert told Reuters. “Some significant part of that will go to budget support. and then we have a range of programs on climate, on SMEs, etc,” he added.

Part of a wider framework: The financing falls under the World Bank’s 2023-2027 Country Partnership Framework with Egypt, under which the bank’s International Bank for Reconstruction and Development (IBRD) will be lending us USD 1 bn a year through to 2027 to support private-sector job growth, health and education services, and climate measures.

The World Bank’s current operational portfolio in Egypt is valued at over USD 8 bn — of which USD 6 bn was allocated from the IBRD and USD 2 bn from the IFC and the Multilateral Investment Guarantee Agency.