New World Bank Financing Will Expand and Strengthen Egypt’s Flagship Social Protection Program

New World Bank Financing Will Expand and Strengthen Egypt’s Flagship Social Protection Program

The World Bank announced yesterday US$500 million in financing to expand and strengthen Egypt’s flagship Social Safety Net Program, also known as Takaful and Karama. The new financing marks a third phase of collaboration between the World Bank and the Government of Egypt to support the establishment of an efficient and effective cash transfer program and to introduce beneficiaries to interventions that generate sustainable incomes and help people to graduate out of poverty.

Investing in human capital is integral to national development and Egypt has made notable progress towards building a more integrated and inclusive social protection system. A cornerstone of Egypt’s social protection system is the Takaful and Karama program (TKP), which as of June 2022, covers 3.69 million households (approximately 12.84 million individuals). Women represent 74 percent of card holders/direct beneficiaries, and 67 percent of the cash goes to Upper Egypt.

The adverse economic impact of recent global events such as COVID-19 and the war in Ukraine added urgency to strengthen and expand the flagship program and to boost the resilience of vulnerable households in the face of future shocks.

“The new financing agreement builds on the success of the first and second phases of Egypt’s Takaful and Karama program and