On Monday, the World Bank announced a $700 million budget support package for Egypt, marking the initial phase of a comprehensive $6 billion program to be rolled out over the next three years.

According to a World Bank statement, this financial injection aims to boost private sector engagement, strengthen Egypt’s economic resilience, and support a greener growth trajectory.

Generating Resilience, Opportunities, and Welfare for a Thriving Egypt Development Policy Financing (DPF) program addresses immediate economic challenges while laying the groundwork for long-term reforms.

Rania Al-Mashat, Egypt’s Minister of International Cooperation, believes the program will propel Egypt towards a more competitive, green, and private sector-led economy.

The $700 million will target areas including:

State-Owned Enterprises: Improving transparency and efficiency to ensure they contribute positively to the economy.

Competition: Strengthening Egypt’s competition authority to combat monopolies and promote fair competition.

Tax Collection: Streamlining processes to increase revenue and reduce budget deficits.

Climate Change: Reducing energy waste and implementing measures to mitigate climate impacts, including establishing a framework for carbon trading.

Egypt is also poised to receive financial aid from the European Union, as the two sides prepare to sign a $1.07 billion macro-financial assistance agreement.

These announcements come amidst a wave of foreign financial support for Egypt, including an expanded $8 billion loan program with the IMF and an $8.1 billion financial and investment package with the European Union. 

The country also secured a $35 billion investment deal with the Abu Dhabi sovereign fund. These developments highlight growing international confidence in Egypt’s economic future.