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How National Vocational Training in Egypt is Empowering Youth

Vocational Training in EgyptAs the most populous nation and strongest economy in the North Africa region, Egypt presents a striking dichotomy: stable economic growth alongside a persistent national poverty crisis. To fight the structural imbalance that has allowed 30% of the population to live below the global poverty line, the Egyptian government, alongside international partners, has turned skills-based vocational learning into a beacon of opportunity. With more than 2 million students enrolled in technical education (TVET) programs, vocational training in Egypt aims to combat poverty, reduce youth unemployment, and promote inclusive growth in hopes of stimulating sustainable development.

Reforming Education to Meet Labor Market Demands

Egypt’s strategic investment in TVET reflects a commitment to building a more resilient and inclusive economy. The Technical Education Reform Strategy is reshaping how young people prepare for the job market, a group that currently sits at 20% unemployment compared to Egypt’s overall 7%, one of the highest in the MENA region. These conditions highlight the urgency of the nation’s tactical use of a competency and skills based curriculum, ensuring new workers can survive the competitive and rapidly evolving labor market each year. 

International development partners like the European Training Foundation, the German Development Corporation and the USAID-funded “Workforce Egypt” project have supported this nationwide reform. Together, these efforts have led to the creation of more than 2,900 institutions that blend academic learning with hands-on experience in fields such as agribusiness, hospitality and clean energy.

Partnerships that Power Progress

A central pillar driving reforms in the country’s education policy is the Egypt Impact Lab (EIL), a government-embedded initiative led by J-PAL Middle East and North Africa. It works alongside the Ministry of Education and Technical Education to evaluate and design policies. The EIL provides evidence and projections to ensure that vocational education policies continue to produce workers who support Egypt’s evolving economy.

In addition, the EIL acts as an interconnected space that brings together policymakers, donors and international experts to align priorities and shape reforms. These partnerships are instrumental in converting ambitious ideas into effective, scalable programs that can reach the students who need them most.

Reaching the Marginalized: Refugees and Informal Workers

While Egypt’s education reforms benefit millions of youth, they are particularly crucial for vulnerable communities. Egypt hosts more than 900,000 registered refugees, along with 1.5 million Sudanese migrants fleeing the current crisis. Refugees face high barriers to employment and education, which vocational training in Egypt aims to address. Programs like Caritas Egypt’s “For a Better Future” offer training and entrepreneurship skills to Egyptian and Syrian youth. Participants receive certifications from the Ministry of Social Affairs, gaining a foothold in Egypt’s competitive labor market. Training topics range from plumbing and tailoring to sustainable practices like plastic waste management and water conservation.

The World Food Programme (WFP) also plays a vital role, especially through its skills development program for refugees and marginalized groups. The WFP focuses on building skills in high-demand sectors, while also providing micro-loans to women entrepreneurs and promoting inclusive training opportunities. These policies directly impact participants’ economic well-being, with household incomes of women in the WFP’s She Can program increasing by up to 50%.

A Path Forward

Vocational training in Egypt has developed into a tool of long-term socio-economic growth, laying long term groundwork to equip young people and marginalized groups with the skills to not only sustain the country’s developing economy, but also transform their own lives. 

The initiatives and partnerships created by Egypt’s TVET system build futures for millions, holding the potential to reduce the inequality and deprivation that the many Egyptians below the poverty line face every day. Furthermore, as Amr Bosila of the Ministry of Education and Technical Education noted, “By aligning education with labour market needs…Egypt charts a course towards a future of inclusive growth and opportunity.”

– Tom Finighan

Tom is based in London, UK and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Egypt’s Drug Shortage

Egypt's Drug ShortageEgypt has faced increasing drug shortages in the past few years, but the issue has progressively gotten worse within the past year. According to recent reports, between 20% and 40% of drug brands are currently missing. Additionally, there is also a shortage of active ingredients ranging from 15%-20%. Overall approximately 800 registered drugs are absent in the country.

Background

The primary reason Egypt is struggling with a drug shortage is because of the limited amount of US dollars. Since 2016, Egypt has been struggling with currency devaluation. The exchange rate currently sits at 50 Egyptian pounds to $1. In January 2023, Egyptian currency was devalued by 40% reaching a value of $0.03, and only marginally improving in March 2023 to $0.02. The lack of value in Egypt’s currency makes it challenging for pharmaceutical companies to import raw materials necessary for manufacturing drugs or importing them from abroad.

Consequences of Egypt’s Drug Shortage

According to the Ministry of Health, about 25% of Egyptians suffer from mental or psychological health challenges. Anxiety and depression are the most common conditions affecting 43.7% of this group, Zawia3 reports. Egypt’s drug shortage means that people who need neurological or psychiatric medication can’t access life-saving medication.

People with chronic illnesses such as schizophrenia are also struggling to obtain their prescribed medications. Many are experiencing worsening symptoms such as depression or suicidal tendencies.

Zawia3 reported that 10% of medications consumed are imported. These include treatments for cancer, hormonal therapy, and rare specialized diseases. Yet, because the country cannot afford imports, many patients with these diseases lack access to these critical drugs.

People have resorted to obtaining drugs through the black market or buying from countries abroad. However, both options are incredibly expensive for most Egyptians. Life-saving medicines such as insulin and chemotherapy drugs are a hefty price for a population in which it was found in 2022, that 21% are currently living in multidimensional poverty.

Solutions

In August 2024, Egyptian Cabinet spokesperson Mohamed al-Hosmany announced that the country would allocate 7 billion EGP to hospitals and pharmacies to address the drug shortage.

To reduce dependency on imports the government is looking to localize its drug production. In 2023, the government established GYPTO Pharma, a pharmaceutical facility that can manufacture medicine and vaccines. This would mean that the government would no longer worry about having to spend money on imports, especially with a currency that has a history of being devalued.

Overall, the government has made plans to address Egypt’s drug shortage and its high prices, but the results are yet to be seen. Hopefully, soon people will be able to go into pharmacies and find the medicine they so desperately need.

– Aya Diab

Aya is based in New York City, NY, USA and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

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Fragility and the Rule of Law in Egypt

The Rule of Law in EgyptEgypt, the most populous Arab country with more than 112 million people, ranks high in the human capital and development index. Beneath this progress, however, lies a complex reality of fragility and the erosion of the rule of law in Egypt. Since 2013, Abdel Fattah el-Sisi’s government has enacted significant changes to Egypt’s institutional and legislative framework, including constitutional amendments and new regulatory measures affecting civil society organizations, media outlets, and public assembly. Despite these issues, Egypt faces significant economic fragility, marked by poor planning, high foreign debt and vulnerability to external shocks. Together, these challenges threaten the nation’s stability and development prospects. 

Erosion of the Rule of Law

Since 2013, when the military ousted the democratically elected government of Mohammed Morsi, the state has been reasserting its authority with Fattah el-Sisi at the helm to prevent potential dissidence with the regime. Shortly after the coup, the new government passed a law that restricts peaceful assembly. Human Rights Watch has criticized El-Sisi’s government for violating international standards. This law allows security forces to arrest peaceful protesters arbitrarily. It subjects them to a fine or up to five years in prison.

According to Amnesty International, Fattah el-Sisi’s government systematically enacts undemocratic laws to disintegrate the rule of law in Egypt, which undermines Egypt’s stability. Fattah el-Sisi uses the pretense of preventing terrorism to crack down on a pluralist society, such as the Law of Organizing the Lists of Terrorist Entities and Terrorists, which enables the government to pursue its opponents legally.

Fattah el-Sisi’s government also passed a constitutional amendment in 2019, changing the constitutional two-term limit. This amendment enabled El-Sisi to be reelected for a third term in December 2023 with 89.6 % of the votes. Egypt feigns stability under Fattah el-Sisi’s rule. However, the erosion of the rule of law in Egypt and justice institutions bolsters grievances and distrust against the state, which increases the risk of political extremism. 

Egypt’s Economic Challenges

Among the erosion of the rule of law, Egypt faces fragility. The International Monetary Fund (IMF) has agreed to increase Egypt’s $3 billion by $5 billion, which will see the Egyptian Pound plummet. Egypt’s economy suffers from decades-old poor planning, weak institutions and a dominant state that deters investment. Heavy foreign debt under Fattah el-Sisi has led to reliance on costly domestic borrowing and worsening deficits. 

Amid internal economic turmoil, Egypt has proved fragile to external turmoil. Its proximity to the Gaza Strip heightens risks to the tourism industry, which accounts for 24% of the country’s gross domestic product (GDP). Moreover, revenues from the Suez Canal, a significant source of foreign currency, have decreased by 60% as Houthi attacks in the Red Sea undermine shipping. In addition, since Egypt imports 40% of its food, it is highly susceptible to external shocks, such as a rise in global food prices due to the war in Ukraine. 

The Good News

Despite Egypt’s challenges, the government aims to improve the quality of life of its most impoverished citizens. The “Decent Life” initiative tackles multidimensional poverty and unemployment by enhancing families’ economic, social and environmental conditions in underserved villages. It aims to ensure access to essential services and create job opportunities to promote citizen self-reliance. The government committed around $9 billion to realize its development goals in rural areas and has strong support from the political leadership. 

According to a report by the Ministry of Planning and Economic Development (MPED), the quality of life index has improved by 18% and the poverty rate has decreased by 14%. The MPED noted improvements in sustainable development goals, health service coverage improving by 24% and sanitation coverage by 46%. The initiative has thus far created 71,000 job opportunities in eight governorates. As of December 2024, the initiative’s first phase is 85.5% complete. Targeting approximately 18 million rural Egyptians, it is one of the world’s largest rural development projects.

Final Remark

The erosion of the rule of law in Egypt and its fragility highlight the intricate balance between governance and development. While the state grapples with weakening institutions and economic instability, the “Decent Life” initiative demonstrates a commitment to improving living standards and addressing poverty in rural areas. These development strides in health, education and essential services show potential for positive change amid broader adversity. However, sustainable progress requires bolstering the rule of law and addressing the root causes of economic fragility to foster long-term stability.

– Salome von Stolzmann

Salome is based in London, UK and focuses on Politics for The Borgen Project.

Photo: Pexels

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Egypt’s Food System: A Possible Shift in Subsidies for 2025

Egypt’s Food SystemAccording to the World Food Programme (WFP), 14.4% of Egypt’s 106.7 million population face food insecurity. Egypt’s 21% stunting rate, which indicates the percentage of children too short for their age, indicates that malnutrition continues to be a national health concern. Between 2022 and 2024, a unique set of circumstances aggravated the issues in Egypt’s food system, which have been long present in the country. However, new plans that the Egyptian government presented indicate a possible way forward in 2025.

The Roots of Egypt’s Food Insecurity

Egypt’s agronomic issues are a major cause of its food insecurity. This food insecurity aggravates and is aggravated by its economic issues. Due to the growing threat of changing weather patterns, Egypt is experiencing chronic desertification and land degeneration. According to a United Nations report from November 2024, “around 100 million hectares…of healthy and productive land is being degraded each year due to drought and desertification.” This scale of land degeneration is especially critical in Egypt considering the already limited nature of its farmland. Only around 4% of Egypt’s land is fit for agriculture, with the rest of the country being deserted and secluded from its main irrigation method, the Nile.

The drought brought on by the changing climate, coupled with a growing population, also means that Egypt experiences severe water scarcity. Not only does this water scarcity impact its irrigation, and thus Egypt’s food system, but its poor irrigation methods also impact its water scarcity. The country already uses approximately 90% of the Nile water for its agricultural system, meaning only 10% is available as drinking water for its population. The low efficiency of these agricultural systems and the increasing demand for water means that since the 1970s, Egypt has had to import water and food to make up for its scarcity. This reliance on importing water and food presents a huge financial burden on the country and also makes it more vulnerable to external shifts. 

Bread and Egypt’s Food Subsidies

Egypt’s reliance on imports has everything to do with its food subsidies. More than 60 of the 105 million citizens depend on Egypt’s subsidized food system for sugar, pasta, and most importantly, bread. Bread is the main source of subsidized nutrition for the large majority of Egypt’s population, which consumes double as much as the country can produce. With wheat being one of the most water-intensive crops and Egypt’s lack of water, the country has become the largest importer of wheat in the world.

This presented a problem for Egypt in February of 2022, when the world’s largest exporter of wheat, Russia, declared war on Ukraine, the world’s fifth largest exporter of wheat. This sent Egypt into a crisis because historically, concretely, and symbolically access to bread represents the population’s stability. From the 1977 bread riots to the 2011 slogan “bread, freedom, social justice,” bread has long represented the struggle of the average Egyptian. 

As the World Bank Group puts it, “Egyptians seem to perceive food subsidies as the most concrete benefit they receive from government spending. Seen as an entitlement, food subsidies are politically sensitive.” This history of bread in the country puts further pressure on Egypt when making changes to its agriculture, imports or subsidies. 

Criticism and a Possible Way Forward

Many have criticized Egypt’s methods of tackling its food scarcity, suggesting that the country misplaces its budget and efforts. President el-Sisi’s government has long prioritized large-scale construction projects aimed at improving the economy such as the new mega-capital located 30 miles outside of Cairo. This new capital, however, does little to accommodate or feed its most vulnerable citizens. 

Moreover, though Egypt managed to maintain its subsidized system through the first few months of the 2022 Russia-Ukraine war, it increased pressure on local farmers in October 2022. During this time, the government cornered domestic farmers into selling them wheat. Though seemingly necessary in maintaining Egypt’s subsidized food system, these restrictions cut into the wheat that farmers use to feed their families. This period shed light on the possibly exploitative measures that the Egyptian government uses on local farmers. Egypt, however, does not apply this same strictness to laws that protect its agriculture. An important Egyptian regulation prohibits infrastructure on agricultural land, enforcement of which Aljazeera has described as “lax.”

The World Bank and the International Monetary Fund (IMF) have long criticized Egypt’s subsidized food system, arguing that it causes waste, pollution and does not appropriately target the poor. When Egypt borrowed $8 billion from the International Monetary Fund in 2024, there was “a zero-growth policy in the total number of subsidy beneficiaries.” However, a new move might change things in 2025. In August 2024, Egypt announced that it might shift from food subsidies to cash payments in 2025. If the World Bank is correct in its estimation, this transition to cash payments may allow Egypt to more efficiently support its population, and invest in important sectors such as health and education. 

Cash Assistance to Sudanese Refugees in Egypt

As of January 6, 2025, a new CERF-funded project offers emergency cash assistance to Egypt’s Sudanese refugees, aiming to soothe their food insecurity. This $2 million grant, set to run until July, offers every refugee $14.8 monthly, which they can claim through an e-card. This initiative should provide a huge momentary relief for Egypt, giving the country a chance to put in place its cash subsidies and ease its food insecurity. Also, the second phase of the “Transforming the Livelihoods of Smallholder Farmers” project is set to take place in 2025. Funded by five banks, in collaboration with the Central Bank of Egypt and the WFP, the project aims to improve the lives of small farmers by optimizing land, machine and water use. With a “34% increase in crop production, a 35% increase in net profit, and a 37.5% reduction in costs” during the first phase, the project shows great promise in its continuation through 2025. The compilation of major initiatives in Egypt may mean a decrease in food insecurity in Egypt this year. 

– Sophia Ghoneim

Sophia is based in Philadelphia, PA, USA and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr

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Microfinance in Egypt: A Tool to Ease Poverty

Microfinance in EgyptMicrofinance in Egypt has been used to promote financial inclusion and empower low-income individuals, particularly women. It does so by providing them with access to small loans and financial services, allowing them to satisfy their household’s needs independently. This has been supported by both government initiatives and NGOs, helping to stimulate entrepreneurship and improve livelihoods in impoverished communities in Egypt.

The Aim of Microfinance Loans

Among other things, microfinance in Egypt aims to extend loans and other financial services to women who need more collateral to access traditional banking services. The microfinance institution covers around 82% of Egyptian poor and low-income households. It not only empowers entrepreneurs and small businesses but stimulates local economies by promoting self-sufficiency and reducing poverty.

Crucially, microfinance loans have a positive effect on the household incomes of women borrowers. While women make up nearly half of Egypt’s population, they make up less than a quarter of the country’s total labour force, many of whom work in the informal sector. As a result of working for the informal sector, women often cannot access financial services, which is an issue that the use of microfinance loans could tackle.

Prioritizing Financial Inclusion

As part of Egypt’s Vision 2030, the national Egyptian government seeks to prioritize women’s financial inclusion and economic empowerment. Already, the Central Bank has begun initiatives to allow female owners of micro, small and medium enterprises (MSMEs) to be part of the formal financial system, according to the Economist Impact. This is important as the Central Bank’s policies indirectly impact the microlending system where its initiatives to enhance digital financial services and financial inclusion can heighten access to microloans for impoverished communities.

The International Monetary Fund (IMF) calculates that increasing the female labor force participation rate to the male level and increasing employment opportunities could increase Egypt’s GDP by 34%, the Economist Impact reports.

Further Developments

Additionally, to support the government’s efforts, HSBC Bank Egypt and Reefy Microfinance Enterprise Services signed a deal earlier this year to provide 150 million Egyptian pounds to micro businesses in Egypt, with one-third of that figure going towards female-led enterprises. On top of this, HSBC has pledged it will provide between $750 billion and $1 trillion dollars by 2030, to support sustainable financing, the Economist Impact reports.

Despite the significant improvements for some, a large number of old clients who have not seen an improvement in household income following the scheme, remain.

Moreover, there are operational risks such as fraud prevention and technology dependency. The risks of fraud are high considering the digital nature of many interactions whereby the implementation of robust fraud detection systems is crucial. Moreover, technology dependency appears to be another operational risk as “the increasing reliance on technology for loan disbursement and collection processes creates risks related to cybersecurity and system reliability,” according to Andersen. Other potential issues include market saturation or funding and liquidity management. Market saturation means that many “entities are competing for the same customer base,” a current example being Valu.

Overall, microfinance in Egypt offers a promising future for financial inclusion and economic empowerment, bar the potential for certain risks. By providing access to small loans and financial services, Microfinance enables individuals to meet their household needs, stimulate entrepreneurship and enhance livelihoods in underprivileged communities. The support from both government initiatives and NGOs has been extremely helpful in facilitating this process, aligning with Egypt’s Vision 2030.

– Amani Almasri

Amani is based in Durham, UK and focuses on Good News and Technology for The Borgen Project.

Photo: Unsplash

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Foreign Aid to Egypt: Balancing Stability and Reform

Foreign Aid to EgyptSince the Arab Spring uprising in 2011, Egypt has faced significant economic and political challenges. Foreign aid to Egypt, primarily directed for economic support and military financing, is a significant element of the country’s international relations and development strategy, with the state being one of the largest recipients of foreign aid globally.

Egypt’s economic situation is deteriorating in the current geopolitical climate, marked by the ongoing Israeli war in Gaza, and its expansion into other Middle Eastern and North African countries, compounded by political instability in Libya, the civil war in Sudan and President El-Sisi’s numerous infrastructure developments. As the country contends with inflation, debt and instability in neighboring nations, foreign aid remains critical to its economic and strategic stability.

Foreign Aid from the United States

Since 1946, the United States has provided around $85 billion in foreign aid to Egypt, primarily targeting military and strategic initiatives, with Egypt the second-largest recipient of military funding globally.

This aid aims to modernize Egypt’s military, strengthen regional security and ensure access to the Suez Canal. U.S. foreign aid has been conditioned based on fulfilling human rights criteria in attempts to boost regional stability and safety. However, in September 2024, the Biden administration granted Egypt the full $1.3 billion aid package, waiving democratic and human rights conditions. This decision drew criticism from activists who argued it undermined efforts to hold Egypt accountable for human rights violations, but the U.S. government emphasized Egypt’s key role in mediating the ongoing Israel-Gaza conflict.

USAID programs offer a solution by channeling funds into health, education and infrastructure, with more than $30 billion allocated to development projects since 2010. USAID has built more than 2,000 schools, improved water access for millions and eliminated polio. Expanding such initiatives can mitigate the risks of mismanagement.  With Egypt’s role in regional geopolitics becoming increasingly complex, U.S. foreign aid highlights Egypt’s importance as a regional stabilizer and a critical ally in countering conflict in the Middle East and North Africa.

Foreign Aid from the European Union

The European Union (EU) is a major provider of economic aid to Egypt, focusing on governance, economic sustainability and migration management. Earlier this year, the EU launched a new strategic partnership with Egypt, including an aid package of €7.4 billion to reinforce stability. This is one of the most expensive financial aid deals the EU has ever partaken in and emphasizes the EU-Egypt partnership based on peace and security and a commitment to human rights, democracy and improved governance.

The EU’s funding also prioritizes renewable energy, agricultural development and socio-economic programs. For example, the EU-Egypt Renewable Energy Project has installed solar and wind farms in desert regions, generating clean energy and providing electricity to millions of households.

The IMF and the World Bank

The International Monetary Fund (IMF) and the World Bank support Egypt through loans and technical assistance tied to economic reforms and structural adjustment programs. Their involvement aims to stabilize Egypt’s economy while addressing long-term development challenges. IMF investments saw a $3 billion loan in 2022 to boost growth after external shocks, including the COVID-19 pandemic and rising food prices caused by the war in Ukraine. The program prioritized reducing public debt, enhancing social protection and promoting private-sector growth.

The World Bank complements the IMF’s approach by funding projects aimed at poverty alleviation, infrastructure development and social protection. World Bank initiatives have improved access to clean water and sanitation, developed renewable energy sources and focused on vulnerable groups. By balancing reform measures with expanded social protections, the IMF and World Bank can help Egypt achieve sustainable economic growth without disproportionately impacting its vulnerable populations.

A Critical Recipient

Egypt remains a critical recipient of foreign aid, balancing its role as a stabilizing force in the region with ongoing domestic challenges. While its diplomatic and humanitarian contributions, especially in Gaza, underscore its importance, concerns over human rights and economic instability highlight the complexities of international assistance. While U.S. military aid ensures regional stability, European, Gulf and institutional support fosters long-term development. Collaborative solutions, like linking governance reform to aid and expanding social safety nets, could transform foreign assistance into a catalyst for sustainable development in Egypt.

– Isobel Hurst

Isobel is based in Graz, Austria and focuses on Good News and Politics for The Borgen Project.

Photo: Unsplash

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Reducing Poverty in Egypt: Balancing Tradition and Modernity

Reducing Poverty in EgyptEgypt, a nation steeped in millennia of history, faces contemporary challenges that test its ability to reduce poverty while maintaining its rich cultural heritage. The delicate balance between preserving tradition and embracing modernity is crucial for sustainable development and reducing poverty in Egypt.

Traditional Approaches to Poverty Alleviation

Egypt’s history of community-based support systems and charitable giving, rooted in Islamic traditions, plays a significant role in poverty reduction. Zakat, one of the Five Pillars of Islam, mandates Muslims to give a portion of their wealth to the less fortunate. This practice, deeply embedded in Egyptian society, has historically provided a safety net for many impoverished families.

Nongovernmental Organizations (NGOs) like the Misr El Kheir Foundation, driven by these traditional values, have been pivotal in offering food, clothing, education and health care to those in need. These organizations operate through local networks, ensuring aid reaches even the most remote areas. The emphasis on community and familial bonds further reinforces the support system, making it a resilient method of reducing poverty in Egypt.

Modern Initiatives and Government Programs

While traditional methods form the backbone of poverty reduction efforts, modern initiatives spearheaded by the government and international agencies are indispensable. The Egyptian government has launched several programs for economic reform and social protection. These include:

  1. Takaful and Karama Programs: Launched in 2015, these social safety nets financially assist the most impoverished families. Takaful (Solidarity) offers conditional cash transfers linked to health and education, ensuring children attend school and receive medical care. Karama (Dignity) supports older and disabled people with unconditional cash transfers.
  2. Economic Reform Program: In partnership with the International Monetary Fund (IMF), Egypt embarked on an ambitious economic reform program in 2016. Measures included floating the Egyptian pound, cutting subsidies and implementing value-added tax (VAT). Despite initial hardships, these reforms have stabilized the economy, attracted foreign investment and created jobs, reducing poverty in Egypt.
  3. Infrastructure Development: Investments in infrastructure, such as the New Administrative Capital and the expansion of the Suez Canal, aim to boost economic growth and job creation. These projects modernize the country’s infrastructure and provide employment opportunities, thereby reducing poverty.

Challenges and the Path Forward

Balancing tradition with modernity in poverty reduction efforts comes with challenges. The initial impact of economic reforms, such as inflation and subsidy cuts, strained many families. Additionally, ensuring that aid reaches those in need without getting lost in bureaucratic inefficiencies remains a concern.

To address these challenges, Egypt continues to refine its strategies. Enhancing transparency and accountability in government programs ensures more effective distribution of resources. Integrating technology, such as digital cash transfers and mobile banking, further streamlines aid delivery and widens access to financial services for people experiencing poverty.

Education and vocational training are critical for equipping the youth with skills needed for the modern job market. Investing in quality education and aligning curriculum with market needs can prepare future generations to contribute to and benefit from economic growth.

Conclusion

Egypt’s efforts to reduce poverty demonstrate a nuanced approach, respecting traditional values while embracing necessary modern reforms. The synergy of these efforts, bolstered by community spirit and innovative government programs, is essential for sustainable poverty alleviation. By continuing to adapt and evolve, Egypt can ensure a harmonious future where economic progress and cultural heritage coexist, providing a better quality of life for all its citizens.

– Rika Mokal

Rika is based in London, UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Pixabay

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Poverty in Upper Egypt 

Poverty in Upper Egypt A decade into Sisi’s reign, Egypt’s economy remains in decline. As the most populous Arab country with around 106 million people, the country continues to face significant economic challenges. In 2020, the World Bank estimated that nearly 30% of Egyptians were living in poverty, with millions more at risk of falling below the poverty line. The majority of the impoverished and vulnerable population is disproportionately concentrated in the rural governorates of Upper Egypt.

Poverty in Upper Egypt

Also known as the “Sa’id,” Upper Egypt refers to the southern part of Egypt and the Nile River valley, extending from the area south of Cairo to Aswan. Despite its rich heritage of ancient Egyptian civilization, poverty in the region is prevalent, characterized by higher rates of unemployment, illiteracy, limited access to adequate health care and underdeveloped infrastructure. Although comprising only 25% of the population, it is home to 40% of the nation’s poor, totaling 12.6 million people. UNICEF findings reveal that a child in rural Upper Egypt is only half as likely to survive to the age of five compared to a child in Lower Egypt.

Access to clean and safe water is a challenge in Egypt and negatively impacts children. In areas without a piped water network, children, especially girls, are often tasked with fetching water, compromising their education and leisure time and further perpetuating the cycle of poverty.

Barriers to Education

Educational attainment in Upper Egypt has involved challenges; it is often difficult for children, particularly girls, to access schools. Families in this region often reside in small, rural hamlets, which are frequently located far from central village primary schools. Prevailing social influences and the lack of transport facilities has hindered children, especially young girls, from reaching these public schools. In Egypt as a whole, issues such as grade repetition, absenteeism and dropout rates reduce the efficiency of the education system. Consequently, approximately 46% of the working-age poor have not completed primary education, and less than 4% possess a university degree. Upper Egypt particularly shows lower intergenerational improvements in education than the remainder of the country, in 2015, approximately only 38.9% of those aged 25 years or older attained a higher level of education than their parents did.

Agricultural Challenges

In Upper Egypt, the governorates with the highest poverty rates see more than 30% of their workforce engaged in agriculture. The local economy relies heavily on subsistence agriculture, which, with unreliable weather conditions and changing weather patterns, is becoming increasingly unsustainable. Indeed, the country’s 1,000 poorest villages, located in three of these governorates, have 74% of households facing food insecurity. More than 55% of employment in Upper Egypt is agriculture related. Small farms, which fall short of international standards and which use traditional practices dominate this sector. Consequently, the region grapples with significant and persistent challenges, including food and water insecurity and climate variability, resulting in unsustainable livelihoods and hindering economic and social development.

The Ishraq Program

The Ishraq program focuses on out-of-school girls in Upper Egypt representing the most underprivileged, disadvantaged and often overlooked group in the country. When compared to their Lower Egypt and Urban governorate counterparts, they are at a much higher risk of early marriage, poor health outcomes and inter-generational poverty. Through the Ishraq program, Save the Children, in collaboration with the Population Council, provides safe spaces for girls who have dropped out of school helping them learn, socialize and develop life skills. “For more than a decade, Ishraq has served 3,321 girls and 1,775 boys in 54 villages across five of the most disadvantaged governorates of Upper Egypt,” according to the Population Council.

The program was met with high demand at the community level and resulted in improved literacy skills, financial management and health education. The program was launched in 2001 and a 2013 report by Population Council detailed plans to continue expanding the program, for which community demand remains high, and to encourage the development of further programs which support graduate girls as they become young women, who require greater life and livelihood opportunities.

Copts In Need

As a U.K. based charity dedicated to reducing extreme poverty in Upper Egypt, Copts In Need (CIN) undertakes various projects to help the poor communities of Upper Egypt, focusing on housing, child development and microfinance projects. In 2023, CIN constructed 200 houses in Upper Egypt and supported 800 members in starting their own businesses.

Another of their notable projects is ‘Eyes of Assiut’  which aims to address the high prevalence of visual impairment and blindness in the region, particularly among women. CIN has established an eye specialist hospital in the Abnoub district, providing treatment and training to local ophthalmologists and nurses, with support from highly qualified U.K. consultants. In the past year, the hospital has continued to be an effective referral and treating center for all Egyptians within Assiut and its peripheries.

Despite Upper Egypt’s rich cultural heritage, it remains one of the poorest and most underdeveloped regions in the country, exacerbated by ineffective government policies. However, initiatives by organizations like Save the Children and Copts In Need offer hope by focusing on education, health and sustainable development. For real progress, stronger government action and support are crucial to transform this region and improve the lives of its vulnerable populations.

– Asma Issa

Asma is based in London, UK and focuses on Politics and World News for The Borgen Project.

Photo: Flickr

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Poverty in Egypt: Everything You Need to Know

Poverty in EgyptEgypt is a lower-middle-income country in northeastern Africa and as of 2019, 1.5% of the population lives on less than $2.15 a day (the international poverty line) while 17.6% are below the lower-middle income poverty line of $3.65. Here is everything you need to know about poverty in Egypt.

Food

Egypt is one of the most food-import-dependent countries in the world. It imports approximately 40% of its food in terms of total value, meaning that the country is highly vulnerable to shocks in global food prices. These food price shocks can have an outsized impact on the poor, who need to spend a much larger proportion of their income on food than the wealthy.

Understanding this, the Egyptian government has long implemented a comprehensive system of ration cards to combat food insecurity. As of June 2024, 71 million Egyptians, or 64% of the total population, participate in the country’s subsidized bread program. This program allows beneficiaries to buy up to 150 loaves of bread a month at the price of 20 piasters a loaf, or about $0.004 each. This price amounts to only 16% of production costs, while the government compensates bakeries for the remaining 84%, according to a 2024 report.

While this program is expensive for the government, it represents a buffer against swings in global food prices and a crucial lifeline for millions of low-income Egyptians.

Water

Water, the basic necessity for all life, is getting scarcer in Egypt. Egypt’s population has grown rapidly as its economy has expanded, exploding from just 27 million people in 1960 to about more than 100 million today. According to the Atlantic Council, this population growth has caused the per capita water supply to quarter over the same period.

The agricultural sector, which relies on traditional flood-based irrigation, is responsible for 86% of the country’s freshwater withdrawals while generating only between 11% and 14% of Egypt’s GDP, making it an ideal target for reform, the Atlantic Council reports.

The Egyptian government is addressing this by giving soft loans to farmers who switch to sprinklers or drip irrigation, which could reduce water usage by as much as 30% to 70% while increasing crop yields by 20% to 90%. At the 2023 Sustainable Development Goals (SDGs) Summit, Egypt launched the Decent Life Initiative and committed to ending both hunger and poverty by 2027.

Income, Education and Health

Egypt is an admirably equal country when measured by its Gini score, a metric that proxies household income distribution. Boasting a score of 0.36 (where 0 equals perfect equality and 1 means perfect inequality), Egypt is the second most equal country in the Middle East by this metric, and among the most equal in the world.

Aiding this image of equality is that 100% of Egyptians have had access to electricity since 2017, while 99.9% have had access to clean fuel for cooking since 2016.

Health and education gaps between rich and poor Egyptians have historically been large, but are closing. For example, 93% of Egypt’s population had access to skilled birth attendants as of 2014, a marked increase from just 65% in 2000. Over the same period, infant mortality was cut in half in the country.

More than 95% of Egyptians have access to safe drinking water, and more than 90% have access to improved sanitation, according to the Economic and Social Commission for Western Asia (ESCWA) report. On the education front, the total proportion of Egyptians completing secondary education has more than doubled over the past decade, reaching 55% of the population.

The poorest quintile of Egyptians reached a secondary education completion rate of 41% in 2014, a huge improvement from the 8% completion rate in 2000, according to the ESCWA report. Despite this progress, the richest quintile has reached a secondary completion rate of 80%, which is almost double that of the poorest.

Final Thoughts

This overview of everything you need to know about poverty in Egypt shows that despite challenging circumstances, Egypt has made laudable progress in reducing domestic poverty in recent years. The country has significantly reduced health, education, and income gaps while supporting small farmers and low-income households through loans and targeted subsidies. While much is still to be done, the future looks hopeful for Egypt’s poor.

– Kipling Newman

Kipling based in Denver CO, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Pixabay

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The $10 Billion Plan to Combat Rural Poverty in Egypt

Rural Poverty in EgyptIn response to the persistent challenge of rural poverty in Egypt, the government has unveiled an ambitious initiative known as the “$10 Billion Plan.” This comprehensive strategy aims to tackle the multifaceted issues underlying rural impoverishment by targeting key sectors and implementing various initiatives. With a substantial budget allocation of $10 billion, the plan focuses on revitalizing the agricultural sector, improving infrastructure, implementing social welfare programs and fostering entrepreneurship in rural communities. By addressing systemic barriers and investing in sustainable development, the plan seeks to uplift rural populations, enhance livelihoods and promote inclusive economic growth across Egypt’s rural landscape.

Since its inception, the Decent Life Initiative has garnered high expectations. In 2021, the Egyptian prime minister hailed it as Egypt’s mega project of the 21st Century, drawing parallels to iconic national endeavors like the Suez Canal and the Aswan High Dam.

Over the years, the initiative has begun to fulfill the promises made by Egyptian leadership. Branded as “Haya Kareema,” the Decent Life Initiative represents a comprehensive strategy to eradicate rural poverty in Egypt, encompassing many projects to foster sustainable growth in rural areas. Praised by the United Nations (U.N.) for its meticulous planning, Decent Life targets various facets of rural life, benefiting from broad support beyond governmental realms, with private sector entities and humanitarian organizations actively participating. With a combined funding of 500 billion Egyptian Pounds ($10.5 billion), Decent Life demonstrates a concerted effort to uplift rural communities and foster enduring socio-economic progress.

Rural Poverty in Egypt

A stark contrast exists between the quality of life in rural and urban Egypt. In 2011, 30% of the rural population struggled to afford necessities, compared to 10.6% in urban areas. Similarly, poverty rates mirrored this discrepancy, with 9.6% of rural Egyptians unable to access adequate food, while only 2.6% faced such challenges in urban locales. The Decent Life initiative represents a concerted effort to ease the impoverished conditions experienced by many rural Egyptians.

The Logistics of Decent Life

Decent Life commenced its official launch in 2019, marking the beginning of a transformative initiative. Initially, the government undertook a comprehensive survey of every rural village, employing an algorithm to identify the disadvantaged communities. These villages were ranked based on various criteria, including access to water and sanitation, education rates, health care accessibility, transportation infrastructure and poverty levels. The inaugural phase of Decent Life, from 2022 to 2024, concentrated on addressing the needs of identified communities. During this phase, a remarkable 23,000 projects were implemented across 1,477 villages, resulting in approximately 18 million Egyptians benefiting from the initiative.

The First Phase

Decent Life integrates vital life-saving interventions with projects aimed at fostering growth. Here are some notable achievements of the initiative thus far: access to water and sanitation: The government constructed 169 water stations, resulting in a significant increase of 24,000 households gaining access to clean water. Additionally, nine sewage treatment plants and 739 sanitation projects under Decent Life were inaugurated. These efforts led to a notable rise in household access to the sewage system, benefiting 287,000 individuals.

The Impact of the Decent Life Initiative

Decent Life, an initiative in Egypt, has made substantial contributions across various sectors. In education, it has constructed more than 14,000 classrooms across 1,242 schools, reducing classroom density in 35% of schools and eliminating the need for shifts due to overcrowding. Health care access has also seen significant improvements with the opening of 382 health units, a new hospital in the Aswan Governance and more than 300 new ambulance services.

Further, transportation infrastructure has been upgraded by paving 45 roads, including 15 main thoroughfares, refurbishing 60 railway stations and enhancing public transport services. Addressing rural poverty is another focus of Decent Life, achieved through initiatives like enhancing financial access. This includes establishing 12 new bank branches, renovating 112 existing branches and installing 563 ATMs, leading to more than 200,000 new bank accounts opening. Efforts to improve internet connectivity have connected more than 180 villages to a fiber optic network and installed more than 1,000 network towers, expanding internet access and economic opportunities for rural communities.

The Future of Decent Life

The completion of the first phase is slated for 2024, with the second phase poised to commence shortly after that. Encompassing more than 1,600 villages and impacting the lives of 20 million Egyptians, the Decent Life Initiative represents a monumental endeavor to eradicate rural poverty in Egypt. The ongoing efforts of the initiative have already yielded substantial benefits for millions of Egyptians, underscoring the imperative of its continuation. With a steadfast focus on sustainable growth, there is optimism that the initiative will provide a lasting solution to rural poverty in Egypt rather than a temporary fix.

– Richard Sartor
Photo: Flickr