Egypt overview

Egypt cityscape at night

In Egypt we focus on:

  • Supporting the competitiveness of Egypt’s private sector through stronger value chains, improved access to access to finance for small and medium-sized enterprises (SMEs), better economic integration and increased opportunities for women and young people.
     
  • Improving the quality and sustainability of Egypt’s public utilities through private sector participation. Egypt suffers from a low quality of service provision and ageing infrastructure. The EBRD will help develop a more efficient power sector and promote gas market reforms contributing to the country’s energy security. The EBRD will also finance the modernisation of municipal infrastructure and promote the participation of the private sector within it.
     
  • Egypt’s Green Economy Transition. The EBRD will support Egypt’s efforts in diversifying its energy mix by financing renewable energy projects and energy efficiency investments across sectors, including energy efficiency credit lines for SMEs. The Bank will also seek to improve water efficiency through modernising water supply and waste water management. These investments will be complemented by policy dialogue.
     
  • Strengthening governance. In close cooperation with international financial institutions, the EBRD will contribute to improving governance in the public and private sector. The Bank will also provide capacity building for relevant institutions to improve competition, promote investment and policy delivery

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 2018: 5.3%

Current EBRD forecast for Egypt’s Real GDP Growth in 2019: 5.5%

In Egypt, growth continued to accelerate for the fifth consecutive quarter and reached 5.3 per cent year-on-year in the second quarter of the country’s 2017-18 fiscal year (FY) (which runs from July-June). The acceleration was driven by manufacturing, trade, tourism and construction, as well as the recovery in mining.

Exports and investment picked up and became more prominent drivers of growth thanks to the liberalisation of the exchange rate in November 2016, the resolution of foreign exchange shortages and the strong performance under the IMF-supported programme. Meanwhile, private consumption slowed down and its contribution to growth declined, the result of the record levels of inflation which reached its peak in July 2017 and averaged 29.6 per cent in 2017, thus eroding purchasing power.

Economic activity is expected to grow at 5.3 and 5.5 per cent in FY2017-18 and FY2018-19, supported by the continued boost in confidence, recovery in tourism, increase in foreign direct investment, improved competitiveness, continued strengthening of exports, the start of natural gas production from the Zohr field, the implementation of business environment reforms and prudent macroeconomic policies. The main risks to the outlook arise from a slowdown in reforms, resurgence of inflation resulting from the next round of subsidy reforms expected in July 2018, and increases in global oil prices which would delay fiscal consolidation. These risks are mitigated by the authorities’ strong commitment and ownership of the economic reform programme.

EGYPT IN THE EBRD'S 2017-18 TRANSITION REPORT