MICROCAPITAL BRIEF: World Bank Lending $200m to Egypt in Effort to Create Jobs by Investing in SMEs

The World Bank recently agreed to lend USD 200 million to the nation of Egypt for a project called “Catalyzing Entrepreneurship for Job Creation.” David Malpass, the President of the World Bank Group, described the project as an effort to support “…the creation of new opportunities for young people and women, along with further progress toward sustainable and inclusive growth.” The project involves channeling USD 145 million through non-bank financial institutions and USD 50 million via privately managed risk capital intermediaries to support lending to small and medium-sized enterprises (SMEs).

The World Bank Group is a multilateral organization whose goal is “to end extreme poverty and promote shared prosperity in a sustainable way.” As of 2019, it has 189 member nations. The group encompasses: (1) the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which make up the World Bank; (2) the International Finance Corporation; (3) the Multilateral Investment Guarantee Agency; and (4) the International Centre for Settlement of Investment Disputes. During the 12 months ending June 2018, the most recent complete fiscal year, the World Bank Group disbursed a total of USD 47 billion.

By Jolene Khor, Research Associate

Sources and Additional Resources

World Bank and Egypt Sign US$200 Million Agreement to Promote Small Businesses and Spur Job Creation for Women and Young People
https://www.worldbank.org/en/news/press-release/2019/05/05/world-bank-and-egypt-sign-us200-million-agreement-to-promote-small-businesses-and-spur-job-creation-for-women-and-young-people

World Bank IBRD and IDA lending data
https://financesapp.worldbank.org/en/

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