News

World Bank to Triple Funding to Egypt to $US 1 Billion, Focus on Renewable Energy

mm
World Bank to Triple Funding to Egypt to $US 1 Billion, Focus on Renewable Energy

The World Bank’s private sector lending branch of the International Finance Cooperation (IFC) has announced plans to triple its funding to Egypt from approximately $US 300 million, in the past year, to $US 1 billion during the current financial year, the National reports.

The boost in lending is part of a funding scheme comprising the wider Middle East region and totals $US 2 billion, representing a 20 percent increase from last financial year.

IFC’s decision to expand funding to Egypt comes against the background of the country implementing a large-scale IMF economic reform program that has helped the Arab world’s most populous nation secure a $US 12 billion loan from the IMF. The reforms include a currency float in November last year and the slashing of subsidies on energy products.

“What helped is the reform of the Egyptian government and the very strong IMF programme that was adopted and agreed to with the IMF,” Mouayed Makhlouf, IFC’s Mena director, said.

“The very strong reforms [in Egypt] we haven’t seen in any other government in the region and we hope others follow, especially in North Africa.”

The IFC is focusing on lending for infrastructure development projects with a particular interest in renewable energy in the Middle East region. Last year, the lender earmarked around half of its released funds in the Middle East to activities related to renewable energy and climate.

Of the $US 1 billion that IFC plans to invest in the Egyptian market, around $US 700 million will be dedicated to renewable energy initiatives.

The lender hopes to secure similar bonds to develop renewable energy projects in Lebanon and Jordan, where wind power and clean energy initiatives are being explored.

“Mena is a group of non-homogenous countries, but the one homogenous factor is the public sector dominance,” added Makhlouf.

“When you do make that switch from public to private, you are going to generate a lot of investment opportunities and that’s where we come in,” Makhlouf said.

The boost in funding comes as Egypt has become the target of several investment sources lately.

In September, the Asian Infrastructure Investment Bank declared its intention to invest $US 210 million in order to “tap” the renewable energy market potential of the country by the Nile.

“We are supporting this project because it contributes to Egypt’s renewable energy capacity, and it will help position the country as a regional energy hub, which will have economic benefits for the entire region,” D.J. Pandian, the AIIB’s vice president and chief investment officer, said in a statement to CNBC.

The Green Climate Fund members also announced in September that it will finance three Egyptian climate projects totaling $US 350 million, according to Al-Mal newspaper, including an initiative on renewable energy, climate change adaptation and private sector participation in climate-focused projects.

Egyptian Population Reaches 104.2 Million: CAPMAS
All Forms of Support to the LGBT Community to be Banned on Media Outlets: SCMR


Subscribe to our newsletter


News
mm
@SamirShalabi_

Samir Shalabi is an urban researcher based in Alexandria. He previously worked as senior writer for Egyptian Streets and editor at al-Masry al-Youm's English-language edition Egypt Independent.

More in News

Egypt Defeats Malawi 2-0 in Qualifiers for Africa Cup of Nations

Farah Rafik25 March 2023

World Bank and Egypt Agree on a New $7 Billion Five-Year Plan to Support Egypt’s Development

Egyptian Streets23 March 2023

Egyptian Court Denies Adoptive Family Custody of ‘Baby Shenouda’, Citing Lack of Jurisdiction

Egyptian Streets19 March 2023

Khaled El-Balshy Elected as Head of Egypt’s Journalists Syndicate

Farah Rafik18 March 2023

Egypt’s Giza and Saqqara Among 2023 World’s Greatest Places: TIME

Egyptian Streets17 March 2023

Minister of Tourism and Antiquities: Egypt Recorded 11.7 Million Tourists in 2022

Dina Khadr16 March 2023

By 2024, Egyptians May Be Required to Speak French by Law

Dina Khadr15 March 2023

Egypt to Provide EGP 1,000 Annually for Egyptian Women to Curb Population Growth

Egyptian Streets15 March 2023