FOR IMMEDIATE RELEASE
April 12, 2014

World Bank and Arab Republic of Egypt Sign $300 Million Loan Agreement
New Project Will Promote Job Creation by Increasing Access to Financing for Egyptian Small Businesses

Washington, DC – Today, the Arab Republic of Egypt and World Bank signed a $300 million loan agreement that will help to create jobs and promote shared economic prosperity, with a special focus on youth, women and underserved regions. This agreement, titled “The Promoting Innovation for Inclusive Financial Access Project,” aims to encourage sustainable private sector growth through investment in Micro and Small Enterprises (MSEs), businesses that are the main source of new employment opportunities in Egypt.

“This agreement with the World Bank will help to unlock the potential of Egyptian entrepreneurs and business owners, creating new opportunities for all Egyptians,” said Dr. Ashraf El-Araby, Egypt’s Minister of Planning and International Cooperation, who signed the agreement with Inger Anderson, Vice President for the Middle East and North Africa at the World Bank.

The loan project is set to reach 130,000 MSEs, 37 percent of which are owned by women, over the course of five years. More than 98 percent of Egyptian businesses fall into this category, which in turn provide 85 percent of employment opportunities not in agriculture – or 40 percent of all Egyptian jobs.

The Project, to be implemented by Egypt’s Social Fund for Development, builds on the interim government’s work to address short-term economic challenges and strengthen long-term economic growth, including a multi-billion dollar stimulus package, increases to the minimum wage, reducing the budget deficit, and energy industry reforms. These efforts are already showing results, and the Egyptian economy is improving: the stock market is at a three year high and GDP is expected to rise from 2% in 2013 to 3.5% in 2014.

The new project is one of the World Bank’s 21 projects in Egypt, worth $4.1 billion in total, the largest of any Middle East or North African nation.