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Swiss Cooperation Strategy Egypt 2017–2020 Abbreviations AFD Agence Française de Développement KfW Kreditanstalt für Wiederaufbau AfDB African Development Bank MERV Monitoring system for development- ARIs Aggregated Report Indicators to report relevant changes on the Federal Dispatch 2017-2020 for MoIC Ministry of International Cooperation International Cooperation MoSS Ministry of Social Solidarity CBM Confidence-building measure MSMEs Micro, small and medium enterprises CS Cooperation Strategy NGOs Non-governmental organisations CSOs Civil society organisations ODA Official Development Assistance CSPM Conflict-sensitive programme OECD Organisation for Economic Cooperation management and Development DIL Directorate for International Law OIC Office for International Cooperation / DPG Development Partners Group Embassy of Switzerland in Egypt EBRD European Bank for Reconstruction and DP Directorate of Political Affairs Development SDC Swiss Agency for Development and EIB European Investment Bank Cooperation EU European Union SDGs Sustainable Development Goals EUTF EU Emergency Trust Fund for stability SDS Sustainable Development Strategy and addressing root causes of irregular SECO State Secretariat for Economic Affairs migration and displaced persons in Africa SEM State Secretariat for Migration FDFA Swiss Federal Department of Foreign SNAP Swiss North Africa Programme 2011-2016 Affairs TVET Technical Vocational Education and GoE Government of Egypt Training HSD Human Security Division UMC Unaccompanied minors and children IFC International Finance Corporation UNDP United Nations Development Programme ILO International Labour Organisation UNHCR United Nations High Commissioner for IMF International Monetary Fund Refugees IOM International Organization on Migration UNIDO United Nations Industrial Development INGOs International non-governmental Organisation organisations WoGA Whole of Government Approach JICA Japan International Cooperation Agency WB World Bank Table of Contents Editorial 5 Executive summary 6 Swiss foreign policy objectives and bilateral economic relations 10 2.1 Switzerland and North Africa 10 2.2 Egypt and Switzerland 10 2.3 Bilateral economic relations 10 2.4 Donor landscape and other actors’ contributions 11 Results and lessons learned from Swiss cooperation 2011–2016 12 Implications for the Cooperation Strategy 15 Development challenges, priorities and objectives 17 5.1 Development challenges 17 5.2 Overall goal and theory of change 17 5.3 Domain 1: Democratic processes and human rights 17 5.4 Domain 2: Inclusive sustainable economic growth and employment 18 5.5 Domain 3: Protection and migration 19 5.6 Transversal themes 20 5.7 Strategic guiding principles 21 Management and strategic steering 22 6.1 Management 22 6.2 Strategic steering 22 6.3 Financial management and human resources 22 Annex 1: Map of Egypt 24 Annex 2: Synopsis of Swiss Cooperation Strategy 25 Annex 3: Results framework 27 Annex 4: Context scenarios and programme adaptations 38 Annex 5: Financial planning 39 3 With about 20 million inhabitants, Cairo is the largest city in Africa and the Arab world. © Swiss embassy Egypt 4 Editorial Across the Mediterranean Sea, Switzerland and its overall engagement in North Africa. Under a Egypt share common interests in securing peace Whole of Government Approach, the State Secre- and development for all in the region. Given tariat for Economic Affairs (SECO), the Swiss Agen- Egypt’s importance for stability and prosperity in cy for Development and Cooperation (SDC), the North Africa and the Middle East, Switzerland sup- Directorate of Political Affairs (DP) and its Human ports Egypt’s ambitions to build accountable and Security Division (HSD), the Directorate for Interna- transparent institutions that provide services to its tional Law (DIL) and the State Secretariat for Migra- citizens guarantee human rights and encourage tion (SEM) are pooling their resources and know- participation. how to jointly implement the strategy 2017–2020. Switzerland and Egypt look back on 40 years of In the four years to come, Switzerland and Egypt successful bilateral economic cooperation. In 2011, will continue to focus their cooperation on three in response to the popular calls for reforms, Swit- domains: support to democratic processes and hu- zerland launched a comprehensive programme on man rights, inclusive sustainable economic growth democratic processes and human rights, economic and employment, and protection and migration. development, employment, migration and protec- As young women and men are playing a key role tion. Six years later, while transition processes have in shaping tomorrow’s Egypt, Switzerland will give followed different paths in North Africa, Switzer- special attention to their needs and aspirations. land remains committed to accompanying all Egyp- Switzerland also aims to contribute to enhanced tians in their efforts to build the future of their cooperation at the regional level and promote ex- country. In this regard, we endorse the vision that changes among North African countries with se- a vibrant civil society, innovative entrepreneurs and lected regional programmes in the areas of culture, sound state institutions contribute to stability and civil society support, economic cooperation and prosperity. migration. With the new 2017–2020 Cooperation Strategy, We firmly believe that with the goals and activities Switzerland continues to support Egypt’s compre- outlined in the 2017–2020 strategy, Switzerland hensive reform agenda as set out in the 2030 Egypt contributes to the sustainable and inclusive devel- Vision. This renewed engagement is in line with opment of Egypt and makes a difference in the Switzerland’s foreign policy objectives and part of lives of its people. Marie-Gabrielle Manuel Sager Pascale Baeriswyl Mario Gattiker Ineichen-Fleisch Ambassador, State Secretary, Federal State Secretary, State State Secretary SDC Director-General Department of Foreign Affairs Secretariat for Migration SEM State Secretariat for Economic Affairs SECO 5 ©SDC Executive summary Egypt, the most populous country in the Arab Monetary Fund (IMF) linked to a three-year plan to world, is a cornerstone for peace and stability, eco- kick-start economic and public sector reforms. nomic development and migration management in the region. The country is committed to combating In addition to shared political, economic, security violent extremism and its diplomatic efforts actively and migration interests, Egypt is the most impor- promote political solutions to end conflicts. tant export market and third biggest trade partner for Switzerland in Africa. An open and conducive Since 2011, Egypt has seen a volatile political envi- trade regime is very important in this regard. Swit- ronment. Since the ouster of President Morsi from zerland values its 40-year cooperation with Egypt power in 2013, a political road map with election which has contributed to enhancing the inclu- has brought former Minister of Defence, Abdel Fat- siveness of economic growth and improving the tah al-Sisi to the presidency. A new constitution has living conditions of Egyptians. As a long-standing also set important benchmarks for the country and dialogue partner with a strong relationship, Swit- a new Parliament has been elected. GDP growth zerland remains committed to bilateral cooperation has been sluggish and economic transformation relations with Egypt. slow. A structural trade deficit, a growing budget deficit, and falling income from tourism, the Suez Sharing the 2030 Egypt Vision, Switzerland is Canal and remittances, have led to severe currency convinced that transparent, efficient and inclusive devaluation and a spike in inflation. Spatial dispar- government institutions are essential for laying ities in poverty continue, unemployment among new and durable foundations for economic devel- youth and women is high, and Egypt is increasingly opment and political stability, and contributing to a country of transit for migrants and refugees. In confidence building between the state and its citi- this difficult context, to meet its Sustainable Devel- zens. Switzerland is thus committed to supporting opment Goals commitments, Egypt developed the Egypt’s comprehensive reform agenda. 2030 Egypt Vision: a roadmap for inclusive develop- ment, the strengthening of Egypt’s regional leader- The 2017–2020 strategy follows the Swiss North ship and the achievement of a dignified and decent Africa Programme (SNAP) 2011-2016, which was Aswan is one of life for all Egyptians. In 2016, Egypt also agreed to a formulated in response to the rapid changes in the Switzerland’s key USD 12 billion loan package with the International region and implemented by the Office for Interna- areas of cooperation. © Swiss embassy in Egypt 6 View of Aswan’s tional Cooperation (OIC) at the embassy of Swit- ing the Whole of Government Approach (WoGA), informal settlements. zerland in Cairo. It builds on earlier achievements a combination of focused strategic activities and © Michelangelo Pignani relating to the overall goal to support the transition flexibility in implementation, diversified partner- in its political, economic and social dimensions to- ships with like-minded actors, and a geographic wards an inclusive, resilient and accountable state focus on Upper Egypt. Application of conflict-sensi- and society. This goal will be achieved through ac- tive programme management will be critical to re- tivities in three domains: 1. Democratic processes main effective
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