World Bank preparing for 2nd phase and tranche of $6B support program for Egypt

Cairo – February 5, 2025: The World Bank Group (WBG) is gearing up for the second phase of its budget support program for Egypt, which is expected to be completed this year. Stefan Gimbert, the World Bank’s regional director for Egypt, Yemen, and Djibouti, confirmed the details, but did not reveal the anticipated value of the second tranche.

This follows the successful disbursement of the first phase, amounting to $500 million, in mid-2024.

The program is part of a broader $6 billion support initiative, announced in March 2024. aimed at boosting Egypt’s economic stability and private sector engagement.

This package is split equally, with $3 billion allocated for governmental programs and another $3 billion set to support the private sector, pending approval.

Gimbert highlighted the World Bank’s commitment to supporting Egypt’s macroeconomic resilience, private sector involvement, and environmentally sustainable growth.

The WBG aims to strengthen Egypt’s economic development through a comprehensive set of initiatives, he explained in an interview during the third Venture Capital Summit in Cairo.

In June 2024, the World Bank also provided Egypt with an additional $700 million to support its efforts in boosting private sector participation, improving macroeconomic stability, and driving inclusive and green growth. Of the total funding, $200 million is contingent upon the availability of complementary financing from other development partners.

This $6 billion commitment is part of the World Bank Group’s broader strategy to promote economic growth and diversify Egypt’s economy by fostering private sector development and ensuring a greener and more sustainable future.

With the total value of ongoing projects in Egypt ranging between $6 and $7 billion, the World Bank remains a key partner in supporting the country’s economic transformation.

Gimbert also emphasized the importance of its partnership with the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), which has supported over 200,000 beneficiaries through the first phase of funding. The total support amounted to $50 million, with a significant portion directed toward empowering women and young entrepreneurs.

The World Bank’s collaboration with the Egyptian government focuses on three main objectives: enhancing the role of the private sector, improving human development through projects in health, education, and social protection (such as the “Takaful and Karama” program), and promoting green transformation, particularly through improvements in air quality in Cairo and the development of the transportation sector.

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