Egypt is slated to receive a $7 billion grant from the World Bank to develop its private sector, enhance healthcare and education services, and bolster its ability to adapt to climate change.
The Country Partnership Agreement (CPF) will span from 2023 to 2027 and include $2 billion from the International Finance Corporation (IFC) over five years and $1 billion per year from the International Bank for Reconstruction and Development (IBRD) for the CPF.
The program aims to level the playing field for the private sector, encourage investment, and improve macroeconomic management. Egypt’s economy has been under stress in the past year, partly due to Russia’s invasion of Ukraine, revealing underlying issues.
The loan will also support Egypt in becoming more resilient to economic shocks and mitigating climate change impacts.
The IFC also announced a public-private partnership to construct desalination plants in Egypt, as part of its efforts to increase the amount of desalinated water available by 8.8 million cubic meters per day by 2050.
The loan from the World Bank comes after the International Monetary Fund granted Egypt a $3 billion bailout loan in December, contingent on economic reforms such as devaluing the Egyptian Pound and reducing the state’s control over the economy.