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World Bank lends Egypt $500 million

Staff writer |
The World Bank is granting a $500 million loan for the development of two industrial zones in Egypt, according to Egypt's minister of Industry and Foreign Trade, Tarek Kabil.

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The amount will be provided by the International Financial Corporation (IFC), the World Bank’s arm for private sector projects in developing countries, and it will be spent in Upper Egypt’s Qena and Sohag provinces.

The Daily News Egypt website reported that the loan will be allocated to implementing infrastructure for operations of industrial areas in Qena and Sohag, enhancing competitiveness of businesses operating there, building managerial efficiency and improving technology and communication systems.

The loan is the outcome of a partnership between the World Bank and the Upper Egypt Local Development project, whereby incentives are offered to lure various industries to the area. The primary goal is jobs creation.

Egypt has other active financing lines with the World Bank and its various branches. In late 2015, the bank granted $1 billion in loans to Egypt, in a bid to increase liquidity. The loan is part of a bigger $8 billion arrangement ending in 2019.

Apart from the World Bank, the African Development Bank (AFBD) supplied Egypt with a $500 million loan towards the end of 2015.

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