The Egyptian government signed, on Sunday, November 1, 2026, an agreement with the World Bank Group to finance the second phase of the Development Policy Financing program, worth EGP 48.3 billion ($1 billion), in the presence of Prime Minister Mostafa Madbouly. Foreign Minister Badr Abdelatty signed the agreement for Egypt, and the Bank’s regional director signed for the Bank.
The World Bank Group board approved the financing in May 2026. It is the second tranche in a series of three concessional development policy financing operations. This type of financing goes to supporting the general budget in exchange for policy reforms, not to funding specific projects.
The financing is tied to a reform package, most notably expanding the beneficiary base of the Takaful and Karama cash support programs, improving the monitoring of greenhouse gas emissions and developing carbon markets, and strengthening the financial sustainability of the electricity and water sectors. According to the World Bank’s statement, the program also includes improving the governance of state-owned companies and increasing competition, and making local debt markets more efficient and reducing the government’s financing costs, and it includes a guarantee from the United Kingdom worth EGP 9.66 billion ($200 million).
The signing comes days after the Central Bank of Egypt raised interest rates by 100 basis points, the first increase since March 2024, bringing the overnight deposit rate to 20%, while Egypt negotiates with the International Monetary Fund on the eighth and final review of its Extended Fund Facility program.
Photo: Shiny Things via Wikimedia Commons (CC BY 2.0)
