- The World Bank Group Board of Directors approved $700 million in financing to the Egyptian government, under the Development Policy Financing (DPF), to enhance macroeconomic stability, achieve a growth path consistent with the green transformation, support competitiveness, and improve the business environment to empower the private sector.
- The Development Policy Financing (DPF) program is designed to support the government’s efforts to address short-term economic challenges, advance structural reforms to create a business environment conducive to private sector growth, enhance macroeconomic stability, and facilitate the green transition, through a number of measures including expanding renewable energy, increasing efficiency in the electricity sectors, and strengthening governance of state-owned enterprises.
- “The Government of Egypt is committed to implementing ambitious economic and structural reforms aimed at creating a more competitive economy, led by the private sector and supporting the green transformation,” said Dr. Rania Al-Mashat, Minister of International Cooperation and Governor of Egypt at the World Bank Group. “The Development Policy Financing Program is one of the World Bank’s mechanisms to support the budget and contributes to advancing policy implementation across three main pillars: building resilience and enhancing macroeconomic stability, enhancing economic competitiveness and improving the business environment, and supporting the green transformation. Our long-standing partnership with the World Bank supports Egypt’s development and reform efforts.”
- The program is pushing for key reforms, including: strengthening the governance framework for state-owned enterprises and companies by establishing a legal basis for state ownership policy; empowering the Competition Authority to combat anti-competitive mergers and acquisitions; enhancing domestic revenue mobilization by ensuring accurate assessment of payroll taxes; reducing electricity distribution network losses; improving climate resilience and sustainable finance for the water and sanitation sectors; scaling up renewable energy; and establishing a regulatory framework for a voluntary carbon credit trading market.
- The DPF is part of a three-year, $6 billion package that the World Bank Group plans to provide to the government, announced in March 2024, to help spur private sector growth and job creation, boost investment in human capital, support climate resilience, and strengthen economic governance. It is the first of three DPFs in the package, with two programs scheduled to be implemented over the next two years.
