The World Bank is to offer Egypt more than $6 billion in financial support over the next three years to help it fulfil its development goals, the Washington-based institution announced Monday.
“Over the next three years, the World Bank Group intends to provide more than US$6 billion in assistance to Egypt,” the development lender said in a statement.
It pertains to “US$3 billion for financial support to Government’s programmes and US$3 billion for the private sector (including mobilisation) – subject to Board approval,” according to the statement.
Egypt, the Arab world’s most populous country, is in desperate need of financial assistance as it navigates a catastrophic economic crisis typified by high inflation.
Its economy, which is controlled by military-linked firms, has been severely harmed by a series of economic shocks, including the recent Huthi attacks on shipping in the Red Sea, which have reduced Suez Canal revenues and robbed Egypt of a crucial source of foreign money.
The World Bank Group is made up of five independent institutions that deal with a variety of topics, including concessional financing, investment, and insurance. Its current portfolio in Egypt is worth more than $8 billion.
Its declaration on Monday comes after a flurry of recent pledges of support from friends such as the United Arab Emirates, as well as the International Monetary Fund, the World Bank’s sister organisation in Washington.
Earlier this month, the IMF agreed to an enhanced $8 billion loan package after Cairo undertook measures such as a more flexible exchange rate and higher interest rates.
The World Bank’s new programmes will focus on “increasing opportunities for private sector participation in the economy,” enhancing the governance of state-owned firms, and “improving the efficiency and effectiveness of public resource management,” according to a statement.