Mubasher: The World Bank (WB) announced a new $1 billion programme to boost the second generation of Egypt’s reform programme.
Egypt’s reform programme is expected to focus on developing the private sector while enabling inclusive growth, according to a recent statement by the WB.
Small businesses being Egypt’s largest source of jobs will be promoted while improving the capacities of local governments to deliver services to their citizens and guide local development.
“The Private Sector Development for Inclusive Growth development policy financing (DPF) will help finance the government’s own economic development program, ‘Egypt Takes Off.’ The program is designed to support three of the government’s key objectives of job creation, improving government performance and raising living standards. The DPF is focused on reforms to improve the business environment, with an emphasis on ensuring small businesses have access to finance and new financial technology such as digital payments, along with opportunities to bid for government contracts; while empowering local governorates and districts for local investment planning,” the WB said.
Egypt’s economic growth has jumped to 5.3% in 2018 from 4.2% in 2017, with expectations to reach 6% in 2019.
“Reforms in the energy sector have made the supply of electricity to businesses and people more reliable, attracted over $15 billion in foreign direct investment, and freed up public funds for the quadrupling of budget for social safety nets. New industrial licensing and investment laws have created a more hospitable environment for private investment, establishing a momentum that the new project aims to maintain and expand on,” the WB added.
