Egypt Secured $2 billion in budget support to boost the private sector at the Egyptian-European Investment Conference.

Egypt has successfully secured $2 billion in budget support from significant development partners, including the World Bank (WB), the European Union (EU), the African Development Bank (AfDB), and South Korea. Rania Al-Mashat, Egypt’s Minister of International Cooperation, announced this milestone.

This financial assistance aims to bolster structural reform initiatives designed to enhance the growth of Egypt’s private sector. The World Bank Group has approved a financing package of $700 million, consisting of $500 million from the World Bank and $200 million from other partners. This funding is part of the World Bank’s broader commitment to provide $6 billion over three years to support Egypt’s economic and structural reforms, with $3 billion allocated to the government and another $3 billion dedicated to empowering the private sector. The loan has a repayment period of 35 years, including a 5-year grace period.

During the Egyptian-European Investment Conference, Egypt secured a €1 billion ($1.069 billion) agreement with the EU. This initial instalment is part of a more significant €5 billion allocation, set to be disbursed in the latter half of 2024. The EU has committed to providing macroeconomic and budgetary support, with the remaining €4 billion scheduled for release between 2025 and 2027.

Additionally, Egypt signed a $131 million agreement with the AfDB to boost the private sector during Minister Al-Mashat’s visit to Kenya for the AfDB’s annual meetings in June.

Furthermore, the Korean Economic Development Cooperation Fund (KDCF) has provided $100 million as part of a sideline arrangement during the Korea-Africa Summit. Minister Al-Mashat also mentioned ongoing negotiations with the Asian Infrastructure Investment Bank to secure $300 million in financing. Read More

News Credit: Middle East Economy

Picture Credit: Unknown

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