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: 5.6%

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

Real GDP growth continued to increase, reaching its highest level in 11 years (5.6 per cent) in the fiscal year 2018-19, mainly driven by higher net exports and investments. Tourism revenues recorded historically high levels thanks to the successful implementation of the tourism reform programme (see Box 4). This sector, together with the gas, trade and construction sectors were the main contributors to the strong GDP growth. Annual inflation has decreased to its lowest rate in almost seven years from a record high level of 33.0 per cent in July 2017, mainly due to currency appreciation and a slowdown in food inflation.

In the fiscal year 2019-20, GDP is expected to rise by 5.9 per cent, driven by the continued strengthening of the tourism sector and of exports, by large public construction projects such as the building of the New Administrative Capital, natural gas production from the Zohr field and other new discoveries, the re-engagement of private investors following the recent trend of interest rate cuts, and the continued 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, the erosion of competitiveness due to the recent appreciation of the Egyptian pound, and the negative outlook for the economy on account of the stagnation in the European Union, Egypt's main trading partner. The risks are partially mitigated by the authorities demonstrated commitment to the implementation of structural reforms.

EGYPT IN THE EBRD'S 2019-20 TRANSITION REPORT