Egypt

Arab Watch Coalition (AWC) has four members in Egypt and works also with other non-member organizations.

AWC is currently collaborating with its members in Egypt to monitor the Climate Resilient Agri-Food Transformation (CRAFT) Project, which is set to receive funding from the World Bank.

To view the project brief in English, please visit this page. For the Arabic version, please visit this page.  

To access a brief presentation about the project in English, click here; for the Arabic version, click here.

IFIs Working in Egypt

IMF

Egypt joined the IMF in 1945 as one of its founding members. Since then, the country has engaged with the IMF through multiple lending programs and policy consultations. 

Recent Engagements

In recent years, Egypt has received several loans from the IMF to support its economic reforms and stabilize its economy. In 2016, Egypt entered into a $12 billion Extended Fund Facility (EFF) agreement to support its comprehensive economic reform program. In 2020, Egypt received a $2.8 billion Rapid Financing Instrument (RFI) to address the urgent balance of payments needs stemming from the COVID-19 pandemic. In 2021, Egypt received a further $5.2 billion under a Stand-By Arrangement (SBA) to maintain macroeconomic stability during the pandemic. In December 2022, the IMF approved a new 46-month Extended Fund Facility (EFF) arrangement for Egypt, amounting to $3 billion. However, this agreement was put on hold after Egypt did not adhere to commitments to unpeg its currency, expedite the sale of state assets, and implement other reforms. However, in 2024, the IMF increased Egypt’s bailout loan from $3 billion to $8 billion.

Article IV Consultations

The IMF conducts annual Article IV consultations with Egypt, assessing its economic health and providing policy recommendations. These consultations focus on fiscal policies, monetary policies, and structural reforms to enhance growth and stability.

World Bank

Egypt joined the World Bank Group in 1945. Since then, the World Bank has supported Egypt through various development projects and programs.  The World Bank currently has 16 active projects in Egypt and 3 projects in the pipeline.

The World Bank Group’s new Country Partnership Framework (CPF) for Egypt lays out the World Bank’s strategy in the country for FY2023–2027.

IFC Engagement

Since starting its operations in Egypt in 1975, the International Finance Corporation (IFC) has invested and mobilized around $9 billion in the private sector and provided $34 million for advisory services across various sectors. IFC’s support for the private sector in Egypt concentrates on fintech, climate finance, manufacturing, infrastructure, renewable energy, healthcare, gender equality, and other sectors. Currently, IFC has 97 active projects and 9 pending projects in Egypt.

African Development Bank (AfDB)

Egypt became a member of the African Development Bank Group in 1964. Since then, the AfDB has supported numerous development initiatives across various sectors in the country, investing in a total of 115 projects. Currently, the AfDB has 11 ongoing projects in Egypt.

The AfDB’s Country Strategy Paper (CSP) for Egypt spans the period from 2022 to 2026. The main objective of the CSP 2022-2026 is to build a competitive and resilient economy through private sector development and addressing the country’s vulnerability to climate change.

European Investment Bank (EIB)

The EIB started its operations in Egypt in 1979. Since then, the EIB has financed numerous projects across various sectors. The EIB has invested over € 15.16 bn in 126 projects in Egypt, supporting the country’s transition to a modern economy.

European Bank for Reconstruction and Development (EBRD)

The EBRD began its operations in Egypt in 2012. Since then, the EBRD has invested in a total of 178 projects. In 2023, Egypt topped the EBRD’s investment list in the southern and eastern Mediterranean (SEMED) region, securing new commitments for 16 projects totaling nearly €1.3 billion. Of these investments, 69% were directed towards Egypt’s financial sector, and 63% focused on gender and inclusion. Additionally, 96% of the EBRD’s investments in Egypt were made in the private sector.

The EBRD’s latest Country Strategy for Egypt covers the period from 2022 to 2027. This strategy focuses on enhancing private sector competitiveness, promoting green growth, and fostering economic inclusion.

Main Issues in Egypt

Egypt is suffering from a severe economic crisis due to the accumulation of debt, which has reduced spending on many public services, reduced subsidies for basic commodities, and increased inflation, especially with the floating of the local currency. Most economic reports predict further impoverishment of vulnerable groups and an increase in poverty, with the middle class shrinking.

Egypt is one of the most indebted countries in the region that receives loans from International Financial Institutions. The International Monetary Fund has provided Egypt with several loans in recent years, and due to the increase in the debt ratio, the Fund is imposing additional fees/surcharges on these loans in addition to the usual debt service.

Many International Development Banks have large investment portfolios in Egypt through the public or private sector. The most important of these banks are the World Bank Group, the African Development Bank, the European Bank for Reconstruction and Development, the European Investment Bank, the Asian Infrastructure Investment and Development Bank, the Islamic Development Bank, and the Arab Development Bank. These banks invest in various areas, including energy, agriculture, irrigation, financial and banking, investment, medium-sized and small projects, and policy-making sectors.

Despite the experience in Egyptian civil society in dealing with International Financial Institutions, Egypt suffers from a complete closure of the civic space and a crackdown on civil society organizations, freedom of expression, and association. The arrest campaigns that many civil society activists have been subjected to have led many of them to adopt self-censorship and the necessary security precautions to avoid security attacks as much as possible.

Several members of the Coalition in Egypt were among their founders. During the past years, members of the Coalition in Egypt have been involved in the Coalition’s activities, especially about the economic policies of the International Monetary Fund and health programs to address the COVID-19 pandemic.

AWC continues to work closely with civil society organizations in Egypt to enhance their capacity to monitor and influence IFI activities.

This page was last updated in July 2024.