Egypt Signs $1 Billion Financing Agreement with the World Bank

Egypt signed a $1 billion financing agreement with the World Bank as part of the second phase of the Policy Financing for Development program under the “Building Resilience, Creating Opportunities, and Enhancing Wealth for Egypt’s Prosperity and Stability” initiative.

The Egyptian Cabinet stated in a press release that the agreement was signed by Minister of Foreign Affairs and International Cooperation Dr. Badr Abdelatty and World Bank Regional Director Al-Waleed Al-Attabani, in the presence of Prime Minister Dr. Mostafa Madbouly.

The statement clarified that this agreement aims to strengthen cooperation with international and regional financing institutions and mobilize necessary development financing to support the resilience and competitiveness of the Egyptian economy, as well as to back state efforts toward green development and create a favorable investment environment that generates employment opportunities and improves citizens’ living standards.

It added that the program seeks to support state efforts to enhance the competitiveness of the Egyptian economy, improve the business environment, strengthen macroeconomic resilience against external shocks, and advance the green transition through a package of structural reforms. These reforms target strengthening corporate governance of state-owned enterprises, removing obstacles to private investment and growth, entrenching fair competition rules, improving the efficiency of domestic revenue mobilization, and reducing the cost of financing borne by the government.

According to the statement, the second phase of the program includes a set of social, economic, and environmental reforms, primarily aimed at expanding the coverage of the “Takaful and Karama” social assistance programs, improving the greenhouse gas emissions monitoring system, developing carbon credit markets, and enhancing the financial sustainability of the electricity and water sectors. These measures support the state’s transition toward a green economy and bolster its capacity to cope with the impacts of climate change.

The World Bank Group’s Board of Executive Directors approved in May 2026 the provision of financing totaling $1 billion under the program, in line with the strategic partnership framework between Egypt and the Bank Group for the period 2023–2027, reflecting the continued partnership between both sides to support development priorities and economic reform.