The World Bank announced on Wednesday that it has approved a new $7 billion collaboration agreement with Egypt for the years 2023 to 2027. The agreement would put an emphasis on increasing private-sector employment, improving health and education services, and climate change adaptation.
According to a release from the World Bank, the Country Partnership Agreement (CPF) will involve $2 billion over five years from the International Financial Corporation (IFC) and $1 billion annually from the International Bank for Reconstruction and Development (IBRD) for the CPF.
According to the statement, the program’s objectives include assisting in leveling the playing field for the private sector, promoting investment, and enhancing shock resilience through improved macroeconomic management.
Egypt’s economy has been under tremendous strain for the past year as a result of the consequences of Russia’s invasion of Ukraine, which exposed fundamental issues.
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Although the government has had lofty plans for privatization, auctions of state assets have been frequently postponed.
Also on Wednesday the International Finance Corporation (IFC), part of the World Bank Group, announced that it had partnered with the European Bank for Reconstruction and Development and Egypt’s Sovereign Fund to develop desalination plants in Egypt through a public-private partnership model.
The scheme is part of Egypt’s plan to increase desalinated water supply by 8.8 million cubic metres of water daily by 2050, with the first plants to be located in the north coast region of Marsa Matrouh, the IFC said.
Egypt depends almost entirely for fresh water supplies on the River Nile, and is considered at high risk from the impacts of climate change.
Story adapted from Reuters
