The Egyptian Ministry of International Cooperation announced in a press release published Friday, December 23, 2022 that the World Bank has granted its country $500 million in financing to support a social protection program.
The program called “Takaful & Karama” (solidarity and dignity in Arabic) aims to improve the resilience of vulnerable social strata to external shocks and global economic crises through direct financial transfers and the financing of economic inclusion projects and empowerment, said the ministry which works for the development of social security.
According to the Minister of International Cooperation who disclosed that the World Bank Board of Directors has approved $500 million in development funding for Egypt to expand its social safety net and coping program to global economic pressures filtering through the country’s economy, the funds will support the government’s conditional and unconditional cash transfer program Takaful and Karama, first launched in 2015 targeting low-income Egyptians eligible for government support in particular.
“The World Bank’s financing will be used to strengthen the capacities of vulnerable segments of society to access employment opportunities, improve their skills through training and consolidate their financial inclusion,” said the Minister of Cooperation. international, Rania Al-Mashat, noting that the “Takaful & Karama” program has covered 3.7 million vulnerable families since its launch in 2015.
The network has already received $900 million in funding since its launch in 2015 and helped around 12.8 million people in the Arab world’s most populous country.
According to him, the financing should also strengthen the institutional capacities of the government in the field of the implementation of social safety nets, by providing it with technical support and investments for the recording, monitoring and verification of financial transfers and accounting systems.
The World Bank had estimated, in a report published Monday, December 19, 2022, that the poverty rate in Egypt, which is 29.7% according to the latest statistics, should increase during the fiscal year 2022-2023 (July 1, 2022 – June 30). 2023), despite the multiple social measures announced by the government.
The institution also said in its report entitled “Egypt Economic Monitor” that inflation is expected to exceed the target range of the Egyptian Central Bank and remain in double digits during the financial year 2022-2023, under the effect of local currency depreciation, supply chain disruptions and potential changes in fuel prices.
Moctar FICOU / VivAfrik