Egypt to receive 700 million dollars to support economic reforms aimed at strengthening the role of the private sector in its economy 

In a press release published on 24 June 2024, the World Bank announced a $700 million loan to Egypt to support economic reforms aimed at strengthening the role of the private sector in the economy, improving macroeconomic resilience and promoting a greener growth trajectory.

This financing, which is part of a Development Policy Support (DPF) operation, will help the government to implement key reforms, including strengthening the governance framework for state-owned enterprises by creating a legal basis for state ownership policy, empowering the Egyptian Competition Authority to combat non-competitive mergers and acquisitions, and improving tax revenue mobilisation through an accurate assessment of social charges, said the same source.

The reforms also include reducing electricity grid losses, improving the climate resilience and financial viability of the water and sanitation sectors, scaling up the deployment of renewable energy and establishing a regulatory framework for the voluntary carbon credit market.

“Development policy support is designed to help Egypt address short-term economic challenges while advancing the next generation of structural reforms to level the playing field to unlock private sector growth potential, strengthen macroeconomic and fiscal resilience, and facilitate the green transition, including by expanding renewable energy and increasing efficiency in the power, water and sanitation sectors,” the World Bank said in its statement.

The financing is part of the three-year, $6 billion support programme for Egypt announced by the multilateral financial institution last March.