The package includes a $200 million credit guarantee from the United Kingdom (UK).
The financing follows two years of successive external shocks that pushed Egypt into a period of heightened vulnerability. A reform programme focused on exchange-rate unification, stronger fiscal discipline, and tax policy and administration changes has helped move Egypt into a stabilisation phase.
The steps are linked to rebuilding external buffers, moderating inflation, improving market sentiment, and gradually supporting a recovery in growth. The ongoing conflict in the Middle East is adding new uncertainty and pressure, increasing the need to sustain reform momentum.
The operation is delivered through the “Generating Resilience, Opportunities, and Welfare for a Thriving Egypt II” (GROWTH II) Development Policy Financing, supporting policies aimed at creating more and better jobs, improving public finance sustainability, and advancing greener growth.
World Bank Division Director for Egypt, Yemen and Djibouti Stéphane Guimbert said the operation supports critical steps in unlocking private investment and strengthening resilience in a challenging context. Guimbert said the financing is designed to help build a more competitive, resilient, and sustainable economy.
Deputy Minister of Foreign Affairs for International Cooperation Samar Al Ahdal described the financing as part of a strong partnership involving Egypt, the World Bank Group, and the UK. Al Ahdal said reforms supported under the operation are intended to generate more and better jobs, protect vulnerable households, and promote sustainable and inclusive growth.
UK Ambassador to Egypt Mark Bryson-Richardson said the UK guarantee is intended to help unlock investment, strengthen economic stability, and support sustainable growth.
Policy measures include steps to strengthen governance of state-owned enterprises, reduce barriers to private investment, and enforce fair competition rules. Reforms to increase domestic revenue mobilisation, improve domestic debt market efficiency, and reduce the cost of government funding are also included.
Social protection measures include automatic enrolment of beneficiaries of Takaful and Karama in the Universal Health Insurance System, expanding access to basic services amid rising prices. Climate-focused measures include stronger emissions monitoring, development of carbon credit markets, support for clean energy demand, and improved financial sustainability in the electricity and water sectors.
GROWTH II is the second operation in a three-part concessional financing series aligned with partner engagement, including the International Monetary Fund and the European Union, with complementary parallel financing expected from the Asian Infrastructure Investment Bank.
–WorldBank/ChannelAfrica–
