WASHINGTON, April 17, 2019 – The World Bank today announced a new $200 million investment project to support the next generation of reforms in Egypt aimed at creating more opportunities for youth and women. The project will focus on increasing the amount and access to credit for small and medium-sized businesses, which have proven to be a major source of growth and job creation.
THE ‘Catalyzing entrepreneurship for job creationThe project is designed to address key barriers young people and women face when launching new businesses. In an economy where the financial system is dominated by banks that lend primarily to mature businesses, the project will channel $145 million primarily through non-bank financial institutions offering loans to small businesses. This component of the project will have established lending targets for women- and youth-led businesses, first-time borrowers and small businesses in less developed regions of Egypt. The project will also fund coaching opportunities for new businesses throughout the entrepreneurial lifecycle to develop the skills and capabilities needed to succeed.
” Entrepreneurs – and especially women – are the cornerstone of strong and stable economies.” said Dr. Sahar Nasr, Egyptian Minister of Investment and International Cooperation and Egypt’s representative on the World Bank Board of Governors. ” Our partnership with the World Bank Group aims to empower Egyptian women and youth to become successful entrepreneurs. This is an investment that offers many opportunities to improve the livelihoods of Egyptians through job creation and providing a solid foundation for the country’s economy.”
The project also aims to increase the supply of seed, start-up and venture capital aimed at riskier and innovative start-ups and young small and medium-sized enterprises with high potential for growth and job creation. To develop the early-stage investment ecosystem in Egypt, the project will invest US$50 million in privately managed venture capital intermediaries, such as angel funds, accelerators, venture capital funds and investment companies. A call for proposals will be launched, with international players encouraged to apply, and funds will be distributed through a transparent and competitive selection process. The objective is to leverage the technical capacity and know-how of the private sector to invest these funds.
” Egypt has demonstrated a strong commitment to reforming its economy.” Said Marina Wes, World Bank Country Director for Egypt, Yemen and Djibouti. ” Even as reforms begin to bear fruit, enabling the private sector to create jobs is essential to achieving sustainable and inclusive growth. We are proud to support Egyptian entrepreneurs across the country, especially women and youth who remain Egypt’s valuable but most untapped potential.”
The new program builds on the success of the current program ”Promoting innovation for inclusive financial access» which provides small and medium-sized businesses with access to financing and promotes private sector job creation across Egypt. To date, this project has created around 300,000 jobs, benefiting around 70,000 women and 56,000 young people.
The World Bank offers a diverse program of support to Egypt, focused on expanding social protection and social inclusion to all citizens, improving competitiveness and infrastructure in less developed regions of Egypt, developing a digital development strategy for tomorrow’s jobs, mobilizing private sector investment for infrastructure and reforms in the education and health sector to help strengthen human capital . The World Bank currently has a portfolio of 16 projects in Egypt with a total commitment of $6.69 billion.
