The World Bank on Wednesday (December 5th) announced it is loaning Egypt $1 billion to support the country’s private sector and create new jobs, Ahram Online reported.
The new programme will build on a series of annual loans totaling $3.15 billion that the World Bank issued from 2015 to 2017 to support Egypt’s economic reforms.
The new financing programme is designed to encourage small businesses, Egypt’s biggest source of jobs, while improving government performance and promoting local development, the Bank said in a statement.
"Egypt has undertaken historical economic reforms over the last four years and the priority now is to create jobs for all Egyptians during this next critical phase of the reform programme," said Samia Msadek, acting World Bank country director for Egypt, Yemen and Djibouti.
"The focus on improving the availability of finance, developing entrepreneurship and transparency in tax filings and government procurement would help small and unconnected businesses thrive and create jobs," Msadek said.
Egypt has pushed ahead with a series of economic reforms tied to a $12 billion International Monetary Fund loan programme aimed at reviving the economy and plugging a budget deficit, which included value-added tax and subsidy cuts.
Egypt’s Minister of Investment Sahar Nasr said the new financing programme is especially targeting young people and women in less developed areas.