The World Bank Group announced on Monday its plan to extend over $6 billion in support to Egypt over the next three years. This assistance comes as Egypt grapples with a foreign currency shortage that has hampered economic activity and caused shortages of imported goods.
Of this financial aid, $3 billion is earmarked for government programs, while an equal amount will be allocated to bolster the private sector, pending approval from the World Bank Group’s board.
This commitment follows Egypt’s recent currency devaluation in March, aimed at mitigating skyrocketing inflation, subsequent to a $35 billion agreement with the Emirati sovereign wealth fund ADQ in late February.
Furthermore, Egypt secured an enhanced $8 billion arrangement with the International Monetary Fund in March, alongside the European Union’s announcement of an $8.1 billion funding package for Egypt on Sunday.
“In support of the government’s development priorities, programs will focus on increasing opportunities for private sector participation in the economy, including through the government’s Asset Monetization Program,” stated the World Bank Group in its release.
Egypt has initiated asset sales to stimulate private sector growth and bolster foreign currency reserves, with a target set in 2022 to generate $10 billion annually over four years through private investment in state assets.
The World Bank Group disclosed that its current operational portfolio in Egypt exceeds $8 billion, comprising $6 billion from the International Bank for Reconstruction and Development, $1.9 billion from the International Finance Corporation, and $0.5 billion from the Multilateral Investment
