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Integrated SDG Insights

Egypt

UNDP’s Integrated SDG Insights explore how to achieve the SDGs by 2030. So that no one is left behind.

How To Read This Report

‘SDG Insights’ playbooks transcend development “as usual,” and leverages data innovation, AI and systems analysis to chart credible pathways that help countries meet the 2030 Agenda.

SDG Moment This section provides an overview of a country's economic growth trajectory, with new insights on sustainability and inclusiveness of growth pathways.

SDG Trends & Priorities This section builds from the foundation of national SDG progress and uses machine learning to analyse national development ambition with an SDG lens.

SDG Interlinkages Combined, these insights are mapped against SDG interlinkages to define policy choices the accelerate SDG progress, tailored to national context.

Finance & StimulusThese policy choices are made against fiscal constraints and opportunities for stimulus mapped in this section to ensure choices translate to development impact and leave no one behind.

1. SDG Moment

While economic growth is a key element in achieving the SDGs, many countries are intent on moving beyond growth as a yardstick for progress. In the short run, growth enables the SDGs; but in the long run, the SDGs aim to transform the pattern of growth itself.

GDP Growth Pathways

People

Poverty: Percentage of the population under each threshold (PPP$ a day).

Data not available.

Planet

Carbon Intensity: CO2 emissions intensity of GDP (tCO2 per PPP $1,000).

Egypt’s economy is in mitigation mode in 2023, but it is expected to transition into acceleration mode by 2024-2025. This pace of growth is characterized by being 60% higher, on average, than that of the world, converging to the country’s growth trajectory forecast before the pandemic. Egypt strives to maintain this pace of growth and make it inclusive through entrepreneurship programmes and through reinforced social safety nets.​

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This pace of growth is expected to have a positive impact on reducing poverty, though there are still challenges to accelerate and solidify poverty reduction from its relatively high prevailing levels of poor and near-poor.​ The economic expansion, although partially hydrocarbon-based, is expected to be less dependent on carbon emissions as the country’s carbon emissions intensity of GDP is projected to decrease at annual rates of around 2.5%.

3. SDG Interlinkages

Maps synergies and trade-offs of national priorities to the most relevant SDG targets to chart policy pathways with most potential to accelerate progress.

5.5: Ensure full participation in leadership and decision-making

Egypt faces challenges in advancing women's economic and political participation, compounded by certain social norms, lack of decent jobs, and by the declining role of public sector employment and need for key services (child care and transport in particular). The unemployment rate among women reached 15% in 2021, with female labour force participation rate in 2021 at 22.2%, according to the World Bank statistics. Its gender gap score is 0.64, ranking 134th of 146 in the Global Gender Gap Index.

However, advances in women's participation in the labour force and expanded access to leadership roles has a proven positive impact on the economy and the society. The gender gap can be reduced through equitable economic participation and opportunity, education, health, political empowerment and enhanced local and regional development to reduce the urban-rural development gap in different regions and governorates.​

​With the current efforts at localizing development, there is an opportunity to enhance women's participation in decision-making at the national and local levels. Egypt can deepen the path it has taken by adopting a national policy that addresses uneven labour force participation, by introducing policies that regulate flexible working arrangements and by providing childcare services. These policies should also address discriminatory practices that hinder hiring women, while also incentivizing a more competitive business environment, removing obstacles, lowering costs and increasing benefits for the formalization of businesses and labour. ​

​This goes alongside the opportunity to develop and strengthen policies and measures, including national cultural awareness campaigns, to combat stereotypes on the role and value of women and men.  ​

8.5: Full employment and decent work with equal pay

61% of the population is below 30 years old, with rapid population growth. Urbanization has increased socio-economic and gender disparities. High levels of informality, weak social protection, including low social insurance coverage and a low rate of decent job creation in the (formal) private sector, limit the opportunities for women and youth to participate in the labour market. ​

​Incentivized investment in high value-added labour-intensive sector together with efforts towards formalization of the informal economy through family business venture projects and supporting micro-, small and medium-sized enterprises (MSMEs) , has shown promise in creating decent work for all -and especially for vulnerable groups. Simplifying laws and procedures and reducing the cost of social security for businesses in combination with public, private and civil society organization partnerships offers a powerful pathway.  ​

​Resilient infrastructure and enhancing the quality of services in education and the health sectors, including reproductive health services is a key element of advancing decent work that is inclusive and sustainable. Investments in inclusive social protection is critical to unlock progress in decent work, especially for people in vulnerable circumstances.​

​Policies and tele-communication infrastructure that provide for a higher ratio of teleworking/physical presence not only creates more work potential, but can cut down emissions.​

9.5: Enhance research and upgrade industrial technologies

Egypt ranks 95th of 132 in the Global Knowledge Index, slightly below the global average. Despite the growth of Egypt's innovative companies in 2022, it ranks 99 in its research, development, and innovation component, driven in part by weak intellectual property (IP) rights and ranks 114 on the Ease of Doing Business Index. Moving towards a knowledge-based economy, which is inclusive and sustainable, implies creating the conditions, and providing the necessary incentives for MSMEs in this area to flourish through improving national R&D performance and IP compliance and increase the returns of and incentives for applied research. ​

​Egypt faces the imperative of transitioning into a knowledge-based economy, and this transformation necessitates several vital actions. Firstly, there is a need to invest in developing clean technology and promote sustainable industries, thus promoting investment in R&D in all sectors including industries. The country can foster a culture of progress and adaptability by supporting industrial innovation through incentives and financing mechanisms. Additionally, digitizing industrial services can enhance efficiency and productivity. Moreover, creating partnerships with international research institutions will facilitate knowledge exchange and elevate Egypt's innovation and productivity. ​

​Increasing the share of GDP expenditure on scientific research will have a major impact on growth. Higher education remains a strong basis for enhancing scientific research, together with engaging private sector support for university research through policies and incentives.

16.6: Develop effective, accountable and transparent institutions

Complexity in the administrative system, data unavailability for fact-based policies and lack of efficiency of institutions at the national and local levels underscores the need for administrative reform.  ​

​Establishment of centres of excellence for risk management at different levels can help to monitor and  improve the efficiency of governance systems and institutions. ​

​Through administrative reform, digital transformation and in combination with data integration across multiple institutions,  performance and efficiency of institutions is proven to improve, while also unlocking progress in data governance and protecting privacy. ​

​Use a participatory approach in planning strategies can improve community participation in development policies – particularly in combination with investments that empower local authorities both technically and financially. ​

15.1: By 2020, ensure the conservation, restoration and sustainableuse of terrestrial and inland freshwater ecosystems and their services.

By prioritizing Target 15.1 in its 2021-2025 National Development Plan, Ecuadorreaffirmed the significance of protecting and preserving terrestrial ecosystems andtheir biodiversity. This includes recognizing that the investment projects intendedto fulfil Target 15.1 will not only contribute to achieving the SDGs 13, 14 and 15, butwill also help restore ecosystems that underpin the availability and comprehensivemanagement of water resources (SDG 6) and promote their sustainable use (Target12.2). Additionally, it will also foster the generation of new energy from renewablesources (Target 7.2).

To this end, Ecuador seeks to strengthen the management of the National Systemof Protected Areas through its 2022-2032 Strategic Plan and the implementationof the National Forest Restoration Plan 2019-2030. These instruments serve as thetechnical, legal and financial foundation for executing local forest restorationprocesses with a landscape vision, with an overall goal of covering 30,000hectares through its projects. Considering that the proportion of national territoryunder conservation or environmental management, as of 2022, stands at 22.1%, itis necessary to mobilize additional financial resources from various sources andestablish robust governance (Target 17.3) to intensify the care of protected areas.This ensures the conservation of natural and cultural resources, genetic flows, theprovision of environmental services for the benefit of the population and thealignment of policies on the ground.

Futures Scenarios

SDG Push is a futures scenario based on 48 integrated accelerators in the areas of Governance, Social Protection, Green Economy and Digital Disruption. It uses national data to explore the impact on human development by 2030 and 2050 across key SDG indicators. It does this by using ‘International Futures,’ a systems model designed to explore interactions across development systems.

Poverty <$1.90 Per Day (Number of People)

Malnourished Children Under 5 (Number Of Children)

Malnourished Children Under 5 (Number Of Children)

4. Finance and Stimulus

Many countries are facing reduced fiscal space, high debt levels, rising interest rates and downgrades on credit ratings. Fiscal and financial constraints tend to slow or even reverse SDG progress.

Egypt's gross government debt, projected at 92.9% of GDP in 2023, is 24.1 percentage points (pp) above the emerging market and middle-income economies (EMMIE) group of 68.8%. The country is projected to collect 18.7% of GDP in revenue this year, 7.3 pp less than the average EMMIE country at 26%.

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Egypt's external debt servicing relative to revenue is projected at 17.4% this year compared to 12.3% for the average EMMIE country. The country’s credit rating is assessed as ‘highly speculative’ and hence below the EMMIE average of ‘non-investment grade speculative’. The weak rating is also reflected in the country’s 10-year bond yield trading as high as 24.5% – 15.2 pp above the EMMIE average of 9.3%, thus suggesting lower investor confidence than in comparable economies – and 20.7 pp above a 10-Year US Treasury bond. ​ ​Egypt is engaging on an SDG financing strategy using the Integrated National Financing Framework (INFF) to undertake the following: ​ (i) Prioritize policy changes necessary to mobilize public and private investments that align with financing needs​ (ii) Put forward the necessary architecture and systems required to implement policy priorities and mainstream new business processes.​ ​The policy actions proposed fall into three categories as follows: ​ Public Finance Management: recent improvements are expected to accelerate and the efficiency gained can be used to finance the identified SDG gaps. ​ “Right financing”, the focused attention to design bespoke financing solutions and structuring for SDG programmes at the very time these are crafted to ensure their financing is guaranteed and optimized. ​ Deepening capital markets: through a general enabling environment, but also through new products and support services aligned to global SDG priorities, so that Egypt triggers and attracts more foreign/domestic private SDG investments.​

SDG Stimulus

The UN Secretary General’s SDG Stimulus Plan lays out a blueprint for action within the existing financial architecture. It includes:

  • Providing liquidity to support recovery in the near term
  • Enhance debt relief for vulnerable countries.​
  • Expanding development financing by MDBs
  • Align financial flows with the SDGs and Paris Agreement, according to country-level priorities and needs, for example through the rollout of the UN Integrated National Financing Framework (INFFs).

Given the projected fiscal and financial constraints faced by

Egypt

possible funding options for the investments derived from the identified interlinkages are as follows:

  • Reinforce constitutional objectives and performance-based systems to set, track and meet SDG expenditures targets, including support to “leaving no one behind” and gender equality​
  • Increasingly use overseas development assistance and international financial institutions’ financing to blend with and leverage foreign and domestic private investment, including PPPs where applicable​
  • Promote thematic bonds and debt for SDG swaps to obtain better conditions from international markets for Egypt SDG investments ​
  • Build SDG impact management practice of private companies and environmental, social and corporate governance (ESG) ratings systems to trigger and attract to Egypt foreign capital seeking SDG impact investments and ESG investments​
  • Develop domestic credit products that incentivize private investments aligned with Egypt SDG priorities​

Methodology & Data Sources

Click here to view the Methodological Note for the Integrated SDG Insights.

This report is the result of a global exercise carried out using artificial intelligence to identify SDG priorities based on 10 national government documents, together with SDG progress and SDG interlinkage analysis. The implementation and monitoring of the 2030 Agenda in Argentina should be consulted in the Country Reports and National Voluntary Reports.

SDG Moment

Methodology
Assesses challenges and opportunities in national growth trajectories with insights on environmental sustainability and inclusiveness.

Data Sources
Future trajectories to 2025 are based on IMF-WEO GDP projections, distributions of per capita income or consumption from the World Bank, and CO2 emissions from the Global Carbon Budget 2022 and EDGAR (JRC and IEA).​

Trends & Priorities

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Interlinkages

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
The exercise globally considered a total of 454 documents published from 2015 to August 2022. (Miola et al., 2019 updated in 2021-2022)​

Finance & Stimulus

Methodology
Provides insight into indicators of fiscal and financial stress with options (INFF) for stimulus and other means to accelerate progress.

Data Sources
Most recent resource data from UNU-WIDER GRD (between 2018 and 2021), debt and revenue from IMF WEO (between 2020 and forecasts for 2023), external debt from IDS (2023), yields from Haver Analytics (8 June 2023), credit ratings from S&P, Moodys and FITCH (2023), and DSA ratings from World Bank/IMF (31 May 2023).