CRB Egypt 2018
Total Page:16
File Type:pdf, Size:1020Kb
COUNTRY RESULTS BRIEF 2018 EGYPT © 2018 African Development Bank Group All rights reserved. Published November 2018 African Development Bank Group Country Results Brief 2018 – Egypt The views expressed in this book are those of the authors and do not necessarily reflect the views and policies of the African Development Bank (AfDB), its Board of Governors, its Board of Directors or the governments they represent. AfDB and its Board of Directors do not guarantee the accuracy of the data included in this publication and accept no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, AfDB does not intend to make any judgments as to the legal or other status of any territory or area. AfDB encourages printing or copying information exclusively for personal and non-commercial use with proper acknowledgment of AfDB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of AfDB. Note: In this report, “$” refers to US dollars. Cover photo: © AfDB, Nour El Refai African Development Bank Group Avenue Jean-Paul II 01 BP 1387 Abidjan 01, Côte d’Ivoire www.afdb.org CONTENTS PARTNERING FOR A COMPETITIVE, INCLUSIVE AND SUSTAINABLE EGYPT 1 LIGHT UP AND POWER EGYPT 7 Becoming a regional energy hub 7 Powering the Egyptian economy 7 Executive summary 1 Partnering to reach middle-income status by 2025 3 FEED EGYPT 11 Light upTurning and agriculturepower Tanzania into a major driver of inclusive and sustainable growth 117 The Bank’s involvement in increasing agricultural productivity 12 Bringing modern energy services 7 The Bank’s contribution to enhancing access to energy 7 INDUSTRIALISE EGYPT 17 Feed TanzaniaBringing manufactures and industries to Egypt 1711 The Bank’s support for catalysing private investment 19 Delivering a food-secure Tanzania 11 The Bank’s involvement in strengthening agricultural value chains 12 Integrate EGYPT 23 IndustrialiseConnecting Tanzania Egypt to regional markets 2315 The Bank’s catalytic role in integrating Egypt 24 Progress in bringing industries to Tanzania 15 The Bank’s support for fostering industrial development 16 IMPROVE THE QUALITY OF LIFE FOR THE PEOPLE OF EGYPT 27 IntegrateDelivering Tanzania jobs and basic services 2719 The Bank’s impact on the lives of Egyptians 27 Bringing about regional economic integration 19 The Bank’s catalytic role in developing regional infrastructure 19 THE BANK’S EFFECTIVENESS IN MANAGING ITS OPERATIONS IN EGYPT 31 Improve the quality of life for the people of Tanzania 23 Portfolio performance and speed of delivery 31 Delivering jobs and essential services 23 Working with partners to catalyse development finance 32 The Bank’s impact on people’s lives 24 Knowledge management 33 Moving closer to Egypt 33 The Bank’s effectiveness in managing its operations in Tanzania 27 Portfolio performance and speed of delivery 27 Operations quality and effectiveness 28 Knowledge management 29 Moving closer to our client 29 Conclusion 31 OUR OPERATIONS IN EGYPT, 2007–2017 This map plots the geographic locations of the Bank operations in Egypt that were completed between 2007 and 2017 in each of the High 5s. North Sinai Cairo Matruh South of Sinaa Giza El Minya EGYPT The Red Sea The New Valley The High 5s Light up and power Egypt Feed Egypt Industrialise Egypt The Bank remains committed to increasing the Integrate Egypt transparency of its operations. MapAfrica, its geocoding Improve the life of Egypt’s tool, has been revamped with a focus on five critical people areas of the Ten-Year Strategy: Light up and power Africa, Feed Africa, Industrialise Africa, Integrate Africa and Improve the quality of life for the people of Africa. Explore our 9000 project locations through the High 5s by visiting mapafrica.afdb.org. Country Results BRIEF 2018 – EGYPT 1 PARTNERING FOR A COMPETITIVE, INCLUSIVE AND SUSTAINABLE EGYPT ver the past decade Egypt has sustained an average annual growth rate of 4% and addressed pressing fiscal challenges. Since the 2011 revolution, this middle- Oincome country has recovered and is now the recipient of the most foreign direct investment in Africa. It has a highly diversified economy, with agriculture accounting for 12% of GDP, services for about half of the GDP and industry for 34%. The country expects to invest more in human capital in the short and medium term as recent policy reforms start bearing fruit. At the same time, Egypt faces a number of By enabling private sector growth and investing development challenges, particularly in providing in education, Egypt is poised to achieve its quality access to basic services, especially in Vision 2030, which is focused on achieving remote governorates with high poverty rates such high, inclusive and sustainable growth, with a as Upper Egypt and the Sinai, and in creating competitive economy. To lay the groundwork enough jobs for its youth. Around 1 million youth for this transformation, in line with the will be entering the labour force every year. framework of an economic reform program Provided with the right skills, this large working- agreed with the International Monetary Fund, age population will be a unique asset to the the Government has embarked on major country and will help sustain higher productivity economic reforms to reduce its high public debt growth. This is why the Government is now by ensuring fiscal consolidation and improving overhauling the public education system to match the business environment. This involves easing skills to demand from the labour market. the process of establishing companies and African middle-income Egypt countries Cross-cutting strategic areas Baseline Milestone Latest Baseline Latest 2008 2011 2017 2008 2017 Growth ● Real gross domestic product (GDP) 7.2 1.8 4.2 5.2 2.7 growth (%) ● GDP per capita (constant 2010 $) 2457 2594 2724 2865 3067 Governance ● Tax and non-tax fiscal revenues (% of GDP) 15.3 14 12.5 18.3 15.5 ● Strong progress ● Limited progress against the baseline ● Regression against the baseline Source: World Bank, OECD 2 PARTNERING foR A competitiVE, INCLUSIVE AND SUstaiNABLE EGYPT obtaining licenses under the new investment valued at $2.98 billion. Egypt is one of law. The country’s improved macroeconomic the Bank’s largest borrowers — the Bank stability and growing foreign reserves are has financed over 100 operations in the helping to provide a much-needed boost to country since 1974 — and its third-largest business sentiment and to attract foreign direct shareholder. Ongoing Bank-financed operations investment. particularly target the energy sector and rural development by providing access to finance The Bank is well positioned to support these in direct response to country needs. The endeavours and build on Egypt’s assets. Bank’s investments have generated significant As this report demonstrates, the Bank has development results over the years, and they already made significant achievements in will deliver more under our Country Strategy partnership with the Government of Egypt, Paper for 2015–2019, which aims at developing in particular in the Bank’s five priority areas, infrastructure and providing access to basic the High 5s: Light up and power Africa, Feed services, while strengthening governance. Africa, Industrialise Africa, Integrate Africa and Improve the quality of life for the people of Following a period of economic stagnation Africa (see Figure 1 for a snapshot of results since the uprisings of 2011, the ● economy in Egypt). Figure 2 demonstrates the share of is expected to grow at 4.2% in FY 2017/18, the Bank’s investment in these areas, along our as in the previous year, and to grow key instruments. This report reviews progress further in the coming years. This growth is on these priorities in Egypt against a series of expected to be supported by an increase in indicators from the Bank’s 2016–2025 Results natural gas production and foreign direct Measurement Framework. It also assesses the investments, tourism recovery and improved Bank’s effectiveness and efficiency in managing competitiveness, as well as by the improved its operations in Egypt. investment environment that implementing balanced macroeconomic policies has brought The Bank is a trusted partner for Egypt. Its about. While ● GDP per capita has increased ongoing portfolio consists of 31 operations only moderately in the past 10 years to $2724 FIGURE 1 FIVE KEY RESULTS SUPPORTED BY THE BANK IN EGYPT FROM 2008–2017 Light up and power 15 million Egyptians connected to new or improved electricity services, Egypt including with 3350 MW new power capacity installed 44 000 hectares of land with improved water management, and increased Feed Egypt irrigation and drainage capacity around the Nile river and delta 105 600 MSMEs provided with microcredit loans and financial services, Industrialise Egypt particularly in Upper Egypt and the Sinai governorates 100 trade attaches trained at the Egyptian Agency for Partnerships for Integrate Egypt Development to attract investment and increase intra-Africa trade Improve the life 2.5 million m3 of daily wastewater treatment capacity through the of Egypt’s people Gabel Al Asfer plant and 1.6 million m3 in the Abu Rawash plant Country Results BRIEF 2018 – EGYPT 3 FIGURE 2 OUR PORTFOLIO TARGETS THE HIGH 5 PRIORITIES Instruments High 5s Projects Programme-based operations Improve the quality of life for the people of Egypt Feed Egypt Integrate Egypt Investment lending Light up and power Egypt Industrialise Egypt Technical assistance and trust fund (constant 2010 $) — in part because of the The government is expected to continue its global financial crisis and post-uprising turmoil fiscal consolidation efforts. To encourage (see Figure 3) — the country is working at investment, the Government will leave the translating this growth into faster poverty corporate tax unchanged at 22.5% and will reduction, particularly in Upper Egypt, and rely on the value-added tax for increased improving the livelihoods of the majority.