Cairo will receive 1 billion dollars a year until 2027 to implement its economic plans

Egypt announces $7 billion deal with World Bank

photo_camera AFP/KHALED DESOUKI - The Egyptian Central Bank in downtown Cairo

Egyptian authorities today announced an agreement with the World Bank (WB) that will provide 7 billion dollars until 2027 to support its economic plans, especially the promotion of the private sector in the midst of a severe crisis. 

"The board of directors of the World Bank group (...) approved the new country strategy for the period 2023-2027 (...) 7 billion dollars will be made available (to Egypt)," said the Egyptian minister for international cooperation, Rania al Mashaat, in a statement. 

She explained that of this sum, Egypt will receive $1 billion each year from the International Bank for Reconstruction and Development (IBRD), in addition to another $2 billion from the International Finance Corporation to implement its 2023-2027 strategy. 

Egypt's strategy for that period, he explained, "is based on three pillars: stimulating the private sector, promoting investment in human capital and supporting climate action efforts". 

"The adoption of the new country strategy for the period 2023-2027 establishes a new phase of effective development cooperation and joint action to support efforts to achieve comprehensive and sustainable growth, based on national priorities in various sectors and the 2030 development vision," Al Mashaat added. 

This agreement comes at a time when the Egyptian economy is going through one of its worst moments due to the lack of funding for the country's development projects, due to the drastic shortage of foreign currency in a country that relies on imports for most of its needs, especially food. 

Egypt, with a population of more than 104 million, recorded an estimated inflation rate of more than 32 % in February, according to official data. Moreover, the Egyptian pound has lost almost 50 % of its value against the dollar since March 2022. 

The devaluation responds to a "flexible" exchange rate policy imposed by the October agreement with the International Monetary Fund (IMF) to obtain a new 3 billion dollar loan aimed at "safeguarding macroeconomic stability and the sustainability of Egypt's debt", among other objectives.

More in Economy and business