Egypt signs $1 billion World Bank financing to back reforms
Egypt signed a $1 billion World Bank financing for phase two of its development policy program, with $800 million from the bank and a $200 million UK guarantee.
Egyptian Prime Minister Mostafa Madbouly on Sunday attended the signing of a $1 billion financing agreement with the World Bank, within the second phase of the development policy financing program, aimed at strengthening economic resilience, driving private sector investment and accelerating the green transition.
The financing comes under the second phase of the World Bank program to boost resilience, opportunities and welfare for Egypt, and includes structural reforms to improve governance of state-owned companies, remove barriers to private investment, promote fair competition, strengthen domestic revenue collection and lower government financing costs. The second phase also includes social, economic and environmental reforms, including expanding coverage of the Takaful and Karama programs, improving monitoring of greenhouse gas emissions, developing carbon credit markets and enhancing the financial sustainability of the electricity and water sectors.
The agreement was signed at the Foreign Ministry headquarters in the New Administrative Capital by Foreign Minister Badr Abdelatty in his capacity as Egypt's governor at the World Bank, and Walid Al-Attabani, the bank's director for Egypt, Yemen and Djibouti, in the presence of Planning and Economic Development Minister Ahmed Rostom and Deputy Finance Minister for Fiscal Policies Yasser Sobhi.
The World Bank had approved the $1 billion package on 8 May 2026, as the second operation in a three-phase program, comprising $800 million in financing from the bank backed by a British credit guarantee worth $200 million, in line with Egypt's country partnership framework for fiscal years 2023-2027.
What do these terms mean?
Development policy financing: A loan the World Bank provides to support agreed economic and structural reforms, rather than financing a specific project.
Credit guarantee: A third party's pledge to repay part of a debt if the borrower defaults, which lowers borrowing costs.
Structural reforms: Changes to the rules and foundations of the economy to improve the efficiency of production, investment and public money management.
Carbon credit: Tradable permits that allow companies to offset their emissions by buying credits from emission-reduction projects.
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