The World Bank has approved a USD 360 mn facility to support the Egyptian economy as it recovers from the covid pandemic, the global lender said in a statement.
The development policy financing (DPF) loan will be used to support the private sector, increase transparency at state-owned enterprises and promote female participation in the workforce.
The project is geared towards bolstering the second phase of Egypt’s economic reform program, which focuses on structural changes, the lender said. The government said earlier this year that it would embark on a three-year reform program that would prioritize private sector-led growth and target specific sectors for development.
The funding announcement comes on the heels of the World Bank upgrading its post-covid growth outlook for Egypt. Egypt’s economy is expected to grow 5.0% in FY2021-2022, up from the 3.3% in FY2020-2021, the bank’s October 2021 MENA economic update reads. The forecast is an upward revision from its April economic update, when it said Egypt’s GDP would grow at a 4.5% clip during the current fiscal year.
