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 2019: 5.5%

Current EBRD forecast for Egypt’s Real GDP Growth in 2020: 5.9%

In Egypt, growth has continued to accelerate in the past year, reaching 5.4 per cent year-on- year in the first half of fiscal year 2018-19, the highest rate in a decade, after having recorded 5.3 per cent in fiscal year 2017-18. The strong growth was driven by tourism, natural gas production, telecommunications, construction and Suez Canal revenues. At the same time, the rebalancing of drivers of growth from the demand (expenditure) side continued, with exports and investment contributing the most to growth. Robust economic growth is expected to continue in fiscal year 2018-19 (5.5 per cent) and fiscal year 2019-20 (5.9 per cent), supported by the continued recovery in tourism and strengthening of exports, large public construction projects including the new capital, 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 persistent wait-and-see approach taken by foreign investors and the erosion of competitiveness as a result of the recent appreciation of the pound and the stubbornly-high inflation. The risks are partially mitigated by the authorities’ strong commitment to the implementation of structural reforms.

EGYPT IN THE EBRD'S 2018-19 TRANSITION REPORT