Egypt receives an additional $300 million from the World Bank’s package to confront the war - Egypt Factories

Stephane Gemper, Director of the Egypt, Yemen and Djibouti Department at the World Bank, announced to reporters on Saturday that Egypt will receive an additional $300 million as part of a development financing package from the World Bank to help it confront the repercussions of the war with Iran.

The package consists of $800 million from the World Bank and a British guarantee of $200 million, and aims to support private sector-led job creation, macroeconomic stability, and the green transition. The bank's board of directors approved this package on Friday.

وأوضح غيمبير أن حصة البنك زادت من 500 مليون دولار بسبب “حالة عدم اليقين في المنطقة والصدمة التي تواجه مصر، كغيرها من الدول، جراء الحرب مع إيران”.

He added that financing is carried out on terms not available in commercial markets, where the interest rate is about 6%, and a maturity period of 30 years, with a grace period before repayment begins.

This is the second operation within a three-stage programme. The first phase was approved in June 2024, and the third phase is scheduled to launch next year.

Other lenders, including the Asian Infrastructure Investment Bank, are expected to provide complementary parallel financing.

Gambhir said that private investment in Egypt rose to about 6% of GDP, from about 4%, but he pointed out that this percentage is still much lower than that of other economies, where private investment usually exceeds 20% of GDP. The bank also advises Egypt on how to promote foreign direct investment.

He added that Egypt has the potential to achieve medium-term annual growth of 6% if macroeconomic stability and structural reforms are maintained. At this rate, Egypt can create about two million jobs annually, compared to about 600,000 jobs currently.

وفيما يتعلق بالحماية الاجتماعية، قال غيمبير إن برنامجي “تكافل” و”كرامة” للتحويلات النقدية في مصر يوفران دعماً أكثر استهدافاً للأسر الفقيرة من برنامج دعم الخبز واسع النطاق. وأضاف: “في أوقات الأزمات، يُفضل الاعتماد بشكل كبير على برنامجي “تكافل” و”كرامة”.