The World Bank has approved a new five-year strategy for Egypt, with a focus on improving the nation’s business environment and promoting green development. The plan, which falls under the country partnership framework, outlines lending plans and operations for the bank in Egypt. It aims to create more private-sector jobs, enhance healthcare and education services, and bolster Egypt’s resilience to economic shocks through better macroeconomic management and climate change adaptation. Marina Wes, country director for Egypt, Yemen, and Djibouti, emphasized the program’s emphasis on job creation and leveling the playing field for the Egyptian people.
The World Bank and International Monetary Fund have long advocated for reducing the government’s role in Egypt’s economy to support private enterprise, a position that was reflected in an IMF loan package negotiated last year. The framework will be backed by $7 billion in lending, including $1 billion annually from the International Bank for Reconstruction and Development and approximately $2 billion from the International Finance Corp over the entire period. In other news, the World Bank’s Global Economic Prospects report indicates that global growth is expected to slow sharply in 2023, with the global economy projected to grow by 1.7% in 2023 and 2.7% in 2024 due to elevated inflation, higher interest rates, reduced investment, and disruptions caused by the Russia-Ukraine crisis.