Egypt - Private Sector and Agriculture Development

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The Private Sector and Agriculture Development Project seeks to support the Government of Egypt's continuing policies of encouraging broad-based private-sector-led growth in order to meet the need for increased employment opportunities and income. Specifically, the PSADP aims to promote rural economic development, and strengthen financial and institutional viability of the Principle Bank for Development and Agricultural Credit (PBDAC), the main institution providing financial services in rural Egypt. The project has two components. The first finances a line of credit covering all categories of agricultural and rural investment, including investment in such activities as transportation, storage, and trading of agricultural inputs or products, irrigation investments, small industry and commerce. Permanent working capital is eligible for funding when included as part of the costs of implementing the investment sub-project. The second component, institution building, improves the accounting and auditing function of PBDAC by funding preparation and implementation of a multi-year audit; assists in improving overall operations, and financial management, including building the capacity of the planning, personnel, and credit functions; and purchasing computer hardware and software to improve accounting and financial reporting and to fully computerize PBDAC and its affiliates.