To support the Egyptian government’s development programmes, the investment ministry said the country has received the third and last $500 million tranche of a $1.5 billion African Development Bank loan.
The loan was approved in 2015 to ease an acute foreign currency shortage that crippled import activity. Egypt struggled to find new sources of dollars as shipments piled up at ports and manufacturing reduced.
In a bid to attract investors who fled after its 2011 uprising, the country has implemented tough reforms under a $12 billion IMF loan programme agreed in 2016. The reforms involved deep cuts to energy subsidies, new taxes and a floated currency.
A statement released by the investment ministry said “the funds will help support development programmes, that meet the citizens’ needs, and which come as a top priority for the government in the context of the social dimension of Egypt’s economic reform programme”.
Mohamed Maait, Egypt’s Finance Minister, said Egypt’s economy has been resilient in the face of wider emerging market turbulence, but the government will seek around $5 billion in foreign currency bonds in the coming months.