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 2017: 3.8%
Current EBRD forecast for Egypt’s Real GDP Growth in 2018: 4.5%
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.