World Bank Group has announced a plan to provide $6 billion in support of Egypt over the next three years.
Gatekeepers News reports that the African nation has been struggling with a shortage of foreign currency, a wide budget, and a deficit in its balance of payments.
Out of the total amount, $3 billion will be allocated to government programs while the remaining $3 billion will be designated for the private sector, pending approval from the group’s board.
This announcement from the World Bank comes after Egypt signed a loan agreement with the International Monetary Fund (IMF) that increased IMF support by $5 billion, as well as an $8.1 billion financing agreement with the European Union.
The first $1 billion from the World Bank is expected to arrive by June, as per the statement made by Egypt country director Stephane Guimbert to Reuters.
“Some significant part of that will go to budget support. and then we have a range of programmes on climate, on SMEs (small and medium-sized enterprises), etc.,” Guimbert said.
The remaining $3bn would be facilitated through the World Bank Group’s private sector arm, the International Finance Corporation (IFC).
This $3bn would be raised through equity and loans and would be made up partly by funds mobilized from other investors.
Guimbert explained the type of companies that would benefit from the World Bank Program.
The World Bank programme will focus in part on helping state-owned enterprises “that are not sold, that remain within government control, and the way they are managed, including leveling the playing field with the private sector” Guimbert said.
Additionally, The World Bank funds will also help finance Egypt’s Social protection project as well as water and agricultural programme.
The World Bank Group said its current operational portfolio in Egypt is more than $8 billion, comprising $6 billion from the International Bank for Reconstruction and Development, $1.9 billion from the IFC, and $0.5 billion from the Multilateral Investment Guarantee Agency.
