The World Bank’s new Country Partnership Agreement (CPF) with Egypt is worth $7 billion over five years, from 2023 to 2027. The agreement aims to support Egypt’s economic development through several key initiatives. These include creating a more level playing field for the private sector, improving access to quality healthcare and education services, and enhancing the country’s ability to adapt to the impacts of climate change.

The CPF will involve an annual contribution of $1 billion from the International Bank for Reconstruction and Development (IBRD), as well as around $2 billion over five years from the International Finance Corporation (IFC). The IFC is part of the World Bank Group and supports private sector development in emerging markets.

One of the main goals of the programme is to boost private sector jobs and encourage investment. To achieve this, the CPF will aim to improve the business climate and support reforms that promote entrepreneurship and innovation. It will also work towards better macroeconomic management to help build resilience to economic shocks.

In addition to the CPF, the IFC has also 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 first plants will be located in the north coast region of Marsa Matrouh, with the aim of increasing desalinated water supply by 8.8 million cubic metres per day by 2050. This is a significant step for Egypt, which relies heavily on the River Nile for its fresh water supply and is considered highly vulnerable to the impacts of climate change.

Egypt has faced significant economic pressures over the past year, exacerbated by the fallout from Russia’s invasion of Ukraine. The government has announced ambitious privatisation plans to help address these challenges, but sales of state assets have been repeatedly delayed. The new partnership agreement with the World Bank is therefore seen as a critical step towards supporting Egypt’s economic recovery and promoting sustainable development.