World Bank approves $1 billion for Egypt reforms to boost private sector jobs

The World Bank Group has approved US$1 billion in financing for Egypt, including a US$200 million credit guarantee from the UK, to support private sector-led job creation, macroeconomic resilience, and green transition. The GROWTH II DPF backs reforms in state-owned enterprise governance, tax policy, and social safety net integration, following exchange-rate unification and fiscal discipline measures.

The World Bank Group has approved US$1 billion in financing to support Egypt's efforts to boost private sector-led job creation, strengthen macroeconomic and fiscal resilience, and advance its transition to a greener economy, according to an official announcement. The financing includes a US$200 million credit guarantee from the United Kingdom. The Generating Resilience, Opportunities, and Welfare for a Thriving Egypt II Development Policy Financing supports policies to help Egypt's economy create more and better jobs, manage public finances more sustainably, and move toward a greener growth path.

The World Bank is a multilateral development institution. Egypt has undertaken reforms including exchange-rate unification, fiscal discipline, and tax policy reforms that have helped rebuild external buffers, moderate inflation, and improve market sentiment, though ongoing Middle East conflict has added new uncertainty. The financing backs measures to strengthen state-owned enterprise governance, reduce barriers to private investment, enforce fair competition rules, increase domestic revenue mobilisation, and improve domestic debt market efficiency.

This development matters for Egypt's economic reform programme, where the DPF protects vulnerable Egyptians by ensuring Takaful and Karama social safety net beneficiaries are automatically enrolled in the Universal Health Insurance System. The operation also supports monitoring of greenhouse gas emissions, developing carbon credit markets, encouraging demand-driven clean energy markets, and strengthening electricity and water sector financial sustainability.

For the private investment sector, the reforms aim to unlock investment and support sustainable growth. Stakeholders including private enterprises, households, and clean energy developers stand to benefit from reduced barriers and improved fiscal stability. This is the second in a series of three concessional financing operations, with parallel financing expected from the Asian Infrastructure Investment Bank, and aligns with IMF and EU support for Egypt's reform programme.