WB Raises Proposed Egypt Growth Support Financing to $1 Bn

The World Bank has increased its proposed financing package to support economic growth policies in Egypt to $1 bn, up from a previously planned $700 million, according to data reviewed by Al Arabiya Business.

The funding is scheduled for approval on May 7, and represents the second tranche of a three-part financing program aimed at supporting inclusive growth reforms in Egypt.

The World Bank said the Egyptian economy has begun entering a phase of cautious but tangible macroeconomic stabilization following two years of severe economic pressures. These challenges included shortages of foreign currency, import constraints, disruptions in energy supplies, and rising inflation, which weighed heavily on economic activity and investor confidence during 2023 and 2024.

According to the bank, reform measures implemented by the Egyptian government—supported by substantial external financing and improved coordination of economic policies—have started to help restore economic balance.

The institution noted that these steps have contributed to stabilizing the exchange rate, strengthening foreign reserves, easing inflationary pressures, and supporting a gradual recovery in economic growth, although some structural vulnerabilities remain.

The World Bank added that other development partners are considering parallel financing linked to the same reform framework, with approvals for their support expected within months after the World Bank disburses its funding.

The new financing package comes as Egypt continues to pursue economic reforms aimed at stabilizing its economy and strengthening investor confidence following a period of significant financial and currency volatility.