Egypt to receive $400m from UK to top off $57bn global aid

AFRICAN BUSINESS AND ECONOMYApril 28, 2024 at 10:39 AM UTC

TLDR

Egypt to receive $400 million UK financial aid over two years, supporting budget.
Aid compliments existing international support for Egyptian economy.
Tranches of $200 million from UK and $500 million from World Bank expected soon, subject to parliamentary approval.

Egypt is set to receive $400 million in financial aid from the UK over two years to support its budget, according to Egyptian Minister of International Cooperation Rania Al-Mashat, as reported by Bloomberg.

This aid supplements existing international support for Egypt's economy and will coincide with budget financing from the World Bank as part of a $6 billion three-year package.

The first tranches of $200 million from the UK and $500 million from the World Bank are expected by July, with equal amounts planned for the following fiscal year. The disbursement of this financing is contingent upon parliamentary approval.

Points clés à retenir

Egypt is grappling with one of its severest economic crises, marked by a currency devaluation exceeding 40% in 2024 and an alarming inflation rate of 33.7% as of March 2024. To address these challenges, the country has secured significant financial support, with the UAE contributing $35 billion. This funding is primarily directed towards the transformation of a coastal area into a global tourism hotspot. Following the UAE deal, Egypt implemented a long-awaited currency flotation, facilitating further agreements with the IMF, European Union, and World Bank. Minister Al-Mashat highlighted expectations of a $7.8 billion pledge from the EU, with $5 billion earmarked for budgetary assistance.

Egypt

UAE

Global Aid

Budget Support

World Bank

IMF