Arab Finance: The World Bank Group approved a $1 billion financing, including a $200 million credit guarantee from the UK, to boost Egypt’s private sector, according to a press release.

The facility will support job creation, strengthen the country’s fiscal resilience, and advance its transition to a greener economy. This is in addition to reinforcing the governance of state-owned enterprises and reducing barriers to private investment and growth.

Egypt has experienced two years of successive external shocks that drove the government to implement a series of reforms to help the country move into a stabilization phase.

The measures included exchange-rate unification, adherence to fiscal discipline, and significant tax policy and administration reforms that contributed to rebuilding external buffers, moderating inflation, and gradually supporting a recovery in growth.

Nonetheless, the ongoing conflict in the Middle East resulted in further pressures and new uncertainty, making it even more urgent to sustain reform momentum.

Hence, the Generating Resilience, Opportunities, and Welfare for a Thriving Egypt II (GROWTH II) Development Policy Financing (DPF) will help accelerate the country’s sustainable economic growth.

Stéphane Guimbert, World Bank Division Director for Egypt, Yemen, and Djibouti, commented: “Egypt is advancing an ambitious reform agenda to unlock private investment, create jobs, and protect households in a very challenging context.”

“This operation supports critical steps in that journey—helping Egypt build a more competitive, resilient, and sustainable economy that can better withstand current and future shocks,” Guimbert added.

Meanwhile, Samar Al Ahdal, Deputy Minister of Foreign Affairs for International Cooperation, said: “The reforms supported under this project will generate more and better jobs for Egyptians, protect our citizens in vulnerable situations, and ensure that growth is both sustainable and inclusive.”

UK’s Ambassador to Egypt Mark Bryson-Richardson noted: “This operation will help unlock investment, strengthen economic stability, and support sustainable growth for the benefit of all Egyptians.”

The newly approved DPF aligns with the World Bank Group’s Country Partnership Framework (CPF) for Egypt for FY2023–2027, Vision 2030, the State Ownership Policy, and the National Climate Change Strategy 2050.

Based on the World Bank’s Macro Poverty Outlook report, Egypt’s economic growth is projected to soften to 4.3% in the fiscal year (FY) 2025/2026, then slow to 4% in FY2026/2027 before accelerating to 4.6% in FY2027/2028.

Sectoral gross domestic product (GDP) is expected to remain uneven, with agriculture expanding by 1.7% in FY2025/2026, rising to 2% in FY2026/2027, and 3.5% in FY2027/2028.

Meanwhile, the industry is projected to grow by 3.8% in FY 2025/2026, before moderating to 2.8% in FY 2026/2027 and 4.1% in FY 2027/2028.