In Egypt we focus on:
- Financing and improving conditions for investment in the private sector, with particular emphasis on SMEs, to support transition and job creation;
- Enhancing the agribusiness value chain to improve food security, strengthen the distribution chain, and develop a sector that accounts for a high share of employment;
- Modernising the financial sector to contribute fully to the economic growth by strengthening its capacity and diversifying the range of financial products offered, including risk capital;
- Increasing the role of cleaner fuels and renewable energy and improving energyefficiency to support energy security and enhance economic competitiveness;
- Supporting reform and commercialisation of the transport, fuels and power sectors, focusing on the mobilisation of private sector infrastructure investment;
- Upgrading and expanding municipal infrastructure, based on decentralisation, commercialisation, and private or non-sovereign solutions to provide the population with wider access to better quality urban services;
- We continue to cooperate with other IFIs, the EU and bilateral partners to ensure that its operations take full account of their work as well.
Egypt became an EBRD recipient country on 30 October 2015
The EBRD's latest Egypt strategy was adopted on 8 February 2017
Current EBRD forecast for Egypt’s Real GDP Growth in 2016: 3.8%
Current EBRD forecast for Egypt’s Real GDP Growth in 2017: 4.0%
In Egypt, growth in FY2015/16 is estimated to have decelerated to 3.8 per cent, down from 4.2 per cent in the previous fiscal year. Whilst private consumption has remained strong and investment is recovering, net exports continue to drag on growth. Tourist arrivals have fallen by around 50 per cent year-on-year; Suez Canal receipts have declined and problems in the petroleum sector have constrained oil exports. Inflation is well above regional peers and rising, reaching 14 per cent at the end of FY2015/16.
A modest pick-up in growth to 4 per cent is expected in FY2016/17 as competitiveness improves and investment continues to gradually recover. The approval and implementation of the IMF staff-level agreement on a three-year US$ 12 billion Extended Fund Facility is expected to boost investor confidence and improve the functioning of foreign exchange markets (the parallel foreign exchange market premium has recently reached 74 per cent). General government fiscal deficit remains high at 11.7 per cent.