The World Bank has approved a $360 million development policy financing (DPF) loan to support Egypt’s post-pandemic recovery, Minister of International Cooperation Rania al-Mashat said on Thursday.
"To further support achievement of the operation's development objectives, the Asian Infrastructure Investment Bank is considering parallel financing for the operation of the same amount using the same package of policy reforms agreed with the World Bank," the World Bank said in a statement.
World Bank Governor for Egypt said the program strategically addresses some of the long-term structural issues affecting growth by focusing on three basic pillars: enhancing macro-fiscal sustainability, enabling private sector development and fostering women’s economic inclusion.
The first pillar supports improving the management of state-owned enterprises by enhancing transparency and reporting and promoting and empowering a greener and more sustainable economic recovery through the issuance of green bonds.
The second pillar builds on the first wave of reforms and supports digital and financial inclusion, the streamlining and automation of trade facilitation, and a modernization of bankruptcy processes that aim to improve Egypt’s competitiveness and private sector job creation. It also strengthens the regulatory framework for private sector participation in waste management, which provides a basis for greener and more inclusive development in the sector.
While the third pillar focuses on legislative and regulatory reforms that promote female participation in the labor force and supports government efforts to address gender-based violence. It includes steps to remove restrictions on women participation in sectors and limitations on working hours and supports the government adoption of a national code of conduct that promotes safe and decent transportation for women in railways.
“Structural reform policies are integral to Egypt’s efforts to accomplish a sustainable and resilient economic recovery that enables the economy to weather future shocks,” Mashat stressed.
“This operation will support our efforts to maintain the reform momentum and achieve the milestones necessary for inclusive growth,” she added.
