Egypt is set to receive a $400 million in budget support from the United Kingdom this is according to a report from Bloomberg.
This is following a significant influx of about $57 billion in finances from various allies and development partners.
This was disclosed in an interview with the Egyptian International Cooperation Minister, Rania Al-Mashat. It was noted that the amount will be provided alongside a previously announced $6 billion budgetary financing from the World Bank.
Al-Mashat noted that Egypt aims to receive the initial instalments of $200 million from the UK and $500 million from the World Bank by July 2024, with the same amounts expected in 2025.
- Al-Mashat who was attending the spring meetings of the International Monetary Fund and World Bank noted, “Once Egypt’s parliament approves this financing, Egypt can get it,”
What you should know
The new $400 million commitment to Egypt indicates continued foreign engagement with the country, even after securing over $57 billion in funding from global institutions and regional allies.
Egypt is currently facing one of its worst economic crises in history, as the country has devalued its currency by over 40% in 2024, as well as staggering inflation rate of 33.7% as of March 2024.
Out of the $57 billion, $35 billion is being contributed by the UAE, with a focus on transforming a coastal area of Egypt into a global tourism destination.
After signing the UAE deal, the Egyptian government was able to implement a long-awaited currency flotation subsequently paving the way for extensive new agreements with the IMF, European Union, and the World Bank.
Al-Mashat also noted that Egypt was expecting a $7.8 billion pledge from the EU, stating that $5 billion of this amount was for budget support.
Recall that in March, the European Commission President, Ursula von der Leyen led a delegation to Egypt announcing a funding package featuring about €7.4 billion in loans and grants.
The World Bank has additionally announced a three-year, $6 billion financial aid package for Egypt, with $3 billion allocated to private sector projects through the International Finance Corporation.
