Egypt's President Abdel Fattah Al-Sisi met World Bank Group President Ajay Banga on Monday, reaffirming Egypt's commitment to economic reform and warning of the economic costs from regional tensions, including an estimated $10bn loss in Suez Canal Authority revenues in recent years.
In the meeting held on Monday, President Al-Sisi praised the strategic partnership between Egypt and the World Bank in promoting sustainable development and supporting the country's economic reform program, highlighting projects implemented across multiple sectors. He reviewed the measures Egypt has taken in recent years to strengthen macroeconomic performance and mitigate the impact of successive global and regional shocks, including cooperation with the International Monetary Fund, efforts to stabilize the foreign exchange market, curb inflation and public debt, reinforce fiscal discipline, and expand private sector participation in economic activity.
Al-Sisi also emphasized Egypt's interest in deepening development cooperation with the World Bank to improve living standards, citing key social initiatives such as the Decent Life program and the Takaful and Karama scheme, which aim to advance the Sustainable Development Goals by 2030, along with housing and youth employment projects.
For his part, Banga expressed appreciation for Egypt's longstanding partnership with the World Bank and commended the ongoing coordination on projects related to social protection, healthcare, food security, education, and climate resilience. He also welcomed the steps taken to advance economic reforms, attract foreign direct investment, and support sustainable growth.
The meeting also addressed regional developments, with Al-Sisi underscoring Egypt's efforts to contain tensions through diplomatic and peaceful means, warning of broader economic repercussions from the ongoing Gaza conflict, particularly on global commodity prices, energy markets, and navigation in the Red Sea. He stated that Egypt has incurred losses of around $10bn in Suez Canal revenues due to the Gaza war and associated disruptions to Red Sea shipping. Additionally, Egypt is facing significant economic pressure from hosting approximately 10.5 million foreigners displaced by regional conflicts, who receive public services comparable to those provided to Egyptian citizens without commensurate external financial support, a burden acknowledged by the World Bank president according to the presidency statement.
