The World Bank has approved $500 million in new development financing to expand and strengthen Egypt’s social safety net and protection programme as the North African country’s economy grapples with global economic pressures amid a war in Ukraine.
The Washington-based lender, said in a statement Thursday, that the new financing will support the Egyptian government’s Takaful and Karama programme that was first launched in 2015 and is targeted at low-income citizens.
The financial support marks the third phase of collaboration between the World Bank and Egypt to support the establishment of an efficient and effective cash transfer programme and the network has received $900 million since its launch in 2015.
“The timing of the program is particularly important as the Government is expanding social safety nets to mitigate the repercussions of exogenous price shocks by enhancing cash transfers, strengthening institutional capacities and providing technical support,” Dr. Rania A. Al-Mashat, Egypt’s Minister of International Cooperation said in the statement.
Last week, the International Monetary Fund approved a $3 billion loan for Egypt and the agreement is expected to draw in an additional $14 billion in financing for the Arab World’s populous nation. The support package will introduce wide-sweeping economic reforms including a “durable shift to a flexible exchange rate regime” and a “monetary policy aimed at gradually reducing inflation.”
