World Bank expands Egypt affordable housing fund to $1 billion

Egypt is expanding its push to provide affordable housing, backed by deeper support from the World Bank Group.

The lender is increasing its total financing for the government’s “Housing for All Egyptians” program to $1 billion, reinforcing a project that has helped reshape the country’s mortgage market over the past decade. 

The additional funding comes as demand for low-cost housing continues to rise in a country of more than 100 million people.

Rapid urban growth and higher construction costs have put pressure on families seeking stable homes, making subsidized units and accessible mortgages a national priority. 

The expansion also signals continued international backing for Egypt’s housing and financial inclusion efforts at a time when many emerging markets are grappling with affordability gaps.

Visit to 10th of Ramadan City 

During a visit to 10th of Ramadan City, Ajay Banga toured completed housing units and met families who have moved from informal or overcrowded housing into newly built apartments.

Residents spoke about safer neighborhoods and improved living conditions for their children. 

Banga praised the quality of the units and the availability of nearby services, including schools and transportation.

He described the initiative as the largest World Bank-financed social housing program of its kind. 

“Ten years ago, there was virtually no local mortgage market in Egypt,” he said. “Today, it is a multi-billion-pound sector — and this is only the beginning.”

Financing and financial inclusion 

Mai Abdel Hamid, CEO of the Social Housing and Mortgage Finance Fund, said $850 million has already been disbursed, with a further $150 million expected this year.

Since its launch in 2015, the program has combined concessional loans with technical support aimed at strengthening Egypt’s housing finance system. 

She said about 65% of beneficiaries used banking services for the first time through the program, while the mortgage default rate remained below 1%.

The fund works with 32 financing institutions. 

Housing Minister Randa El-Menshawy said the initiative reflects the government’s commitment to providing subsidized homes with affordable payment terms for low- and middle-income families. 

For policymakers and investors, the $1 billion commitment underscores how housing finance and public-private cooperation are playing a growing role in Egypt’s economic development.