The board of directors of the African Development Bank (AfDB) has approved disbursing the third USD 500 mn tranche of the USD 1.5 bn loan to Egypt on Wednesday, the AfDB announced in a statement. “The Egyptian authorities have demonstrated sustained commitment to the implementation of reforms supported under the program, including supporting business, investment and industrial growth, improving energy sustainability and security. The reforms underpin Egypt’s economic turnaround with a clear focus on helping support the poorest via improved targeting of social spending on health, education, and job creation,” the statement read.

The AfDB also projects that Egypt’s GDP will grow 4.8% in FY2017-18 and 5.5% in FY2018-19, “boosted by restored investor confidence but partially diluted by high inflation,” according to the bank’s African Economic Outlook 2018 report. The report notes that inflation is projected to decline to 21.2% in this fiscal year and 13.7% in FY2018-19. “Currency depreciation boosted foreign direct investment, the economy is considered more competitive, and business confidence has improved. Public investment, through a series of megaprojects, boosted growth in FY2016-17. Better markets conditions have been a main factor in the return to growth, particularly benefitting exports, led by mining products, especially gold and oil (mostly crude petroleum),” read the report. You can read the full heavy 201 page report (pdf), or skip ahead to the Egypt Economic Outlook.