World Bank approves $400 mn for two Egyptian social schemes

The World Bank approved Thursday support for Egypt's government with $400 million for a project that is set to benefit 1.5 million poor Egyptian families.

Earlier this year, Egypt's government established conditional cash transfer projects called "Takaful and Karama" (Solidarity and Dignity).

Takaful targets poor families with children younger than 18 to send them to schools, while Karama targets the elderly and the disabled, so long as they can't earn their living, according to the state TV online website.

Impoverished Upper Egypt is expected to benefit from the project that will insure children get access to education and healthcare, said Afrah Alawi Al-Ahmadi, World Bank senior social protection specialist and project team leader.

With staggering poverty rates reaching 26 percent of the population, Egypt remains one of the top 20 countries suffering from the prevalence of chronic malnutrition with a third of its children under the age of five stunted. In addition, at least quarter of children don't enroll in basic education and up to half of them do not access secondary schools.

Takaful pays each family LE325 in addition to LE60-LE100 per child on a monthly basis, while Karama pays each elderly or disabled person LE350 per month.