Ahmed Kamel – Egypt Daily News
The World Bank Group has approved a $1 billion development policy financing package for Egypt aimed at supporting job creation led by the private sector, strengthening macroeconomic stability, and accelerating the country’s shift toward a greener economy, according to an official statement released on Monday.
The package includes a $200 million credit guarantee provided by the United Kingdom, reflecting coordinated international support for Egypt’s ongoing reform agenda at a time of heightened regional and global economic uncertainty.
The financing comes as Egypt continues to implement a broad set of economic reforms introduced over the past two years, including the unification of the exchange rate, fiscal consolidation measures, and structural tax and administrative reforms. These steps have helped rebuild foreign currency reserves, ease inflationary pressures, and gradually restore investor confidence in the economy.
However, the World Bank noted that ongoing geopolitical tensions in the region, particularly the war involving Iran, are adding fresh pressure on Egypt’s economy and increasing the urgency of maintaining reform momentum.
Despite these challenges, recent government data has pointed to improving economic indicators, including a record rise in foreign reserves at the Central Bank of Egypt and stronger-than-expected GDP growth during the first quarter of 2026. The Egyptian pound, which had weakened sharply at the onset of regional tensions, has also rebounded to its strongest level in roughly a month, supported by improving market sentiment.
The financing forms part of the second phase of the World Bank’s Development Policy Financing program for Egypt, and is designed to support policies that expand employment opportunities, improve fiscal sustainability, and promote a more environmentally sustainable growth model.
A key focus of the program is strengthening governance in state-owned enterprises, reducing barriers to private sector investment, and improving domestic revenue mobilization while lowering government financing costs. It also includes measures to expand social protection, including automatic enrollment of beneficiaries from Egypt’s “Takaful and Karama” program into the universal health insurance system.
On the environmental front, the program supports the development of carbon credit markets, improved emissions monitoring systems, and reforms aimed at enhancing the sustainability of the electricity and water sectors.
The World Bank described the operation as part of a broader three-phase concessional financing program supporting Egypt’s economic reform agenda in coordination with other international partners, including the International Monetary Fund and the European Union. The Asian Infrastructure Investment Bank is also expected to provide complementary financing under the same framework.
Officials said the program aligns with Egypt’s broader strategic priorities, including its Vision 2030 sustainable development strategy, national climate strategy for 2050, and its newly articulated economic development framework focused on growth, resilience, and private sector expansion.
Stefan Jäger, World Bank Country Director for Egypt, Yemen, and Djibouti, said the country is pursuing an ambitious reform program aimed at boosting private investment and job creation under challenging regional conditions, adding that the financing supports efforts to build a more competitive and resilient economy.
Egyptian officials and international partners described the agreement as a reflection of strong strategic cooperation aimed at supporting inclusive growth, improving living standards, and ensuring long-term economic stability amid ongoing global uncertainty.
