Egypt and the World Bank have signed a $200 million loan agreement for the Egypt Emergency Labor Intensive Investment Project which is designed to create a quarter million jobs.
The agreement was signed by the Dr. Ashraf Al-Araby, Minister of Planning and International Cooperation and Inger Andersen, World Bank Vice President for the Middle East and North Africa Region. Prime Minister Dr. Hisham Qandil witnessed the signing.
In response to increasing levels of poverty and unemployment as a result of slower economic growth, the US$200 million project will support employment opportunities for unemployed, unskilled and semi-skilled workers in those parts of Egypt where the need is most acute.
The project is estimated to create 250,000 employment opportunities over three years for those most affected, targeting mainly youth in poor regions and expanding opportunities for females. It will create employment in different sectors including housing, irrigation, education, health, and community development.
"Egypt has tremendous economic potential. We look forward to supporting Egypt and the new government as it creates jobs, fosters inclusion and bringing together citizens the 'freedom and dignity' that has been the rallying cry of change," Andersen said.
Following the revolution of January 25, 2011, the World Bank Group broadened its engagement with all segments of Egyptian society. Last June, the World Bank Board of Directors endorsed a new strategy that reflects the strong desire in the new Egypt to focus on job creation and reforms to increase inclusion, transparency and accountability.
The Interim Strategy Note was the product of a series of consultations with civil society, new political parties, youth organizations, and representatives from academia and the private sector.