World Bank approves $7bn partnership deal to support Egypt

Cairo, March 23

The World Bank said it has agreed to provide Egypt a partnership agreement worth $7 billion to support the country's reforms and sustainable growth.

The World Bank's board of executive directors approved Tuesday the Country Partnership Framework with Egypt for the financial years 2023-2027, the international lender said in a statement on Wednesday.

The package will help Egypt create "more and better private sector jobs", build equitable health and education services, and improve resilience to economic shocks and climate change, Xinhua news agency reported citing the statement as saying.

It also seeks to enhance Egypt's role in regional trade, and its connectivity in infrastructure, transport, energy and labour, it added.

This adds to $3 billion loan that the International Monetary Fund approved for Egypt last December, which required the country to make a permanent shift to a flexible exchange rate regime, reduce the state footprint in economy and facilitate private-sector-led growth.

Egypt's economy has been struggling to contain high inflation and shortage of foreign currency as repercussions of the lingering Covid-19 pandemic and the ongoing Russia-Ukraine conflict prompted capital flight from emerging markets.

The support packages of the World Bank and the IMF are vital to Egypt whose pound has recently lost about half of its value following a series of local currency devaluations by the Central Bank of Egypt that started in March last year.