What is the present situation in Egypt?
Egypt is the most populous Arab country with its seventy-two million inhabitants. Income per capita amounts to about 1300 US Dollars. Strong points are: tourism, natural gas, agriculture, the Suez Canal, attractive location nearby the European market, cheap skilled labour. Weaker points are: high population growth, unemployment, bureaucracy, lack of entrepreneurship, high dependence on Nile water.

Since 2004 the Egyptian government has taken numerous measures to reform the economy: liberalisation of international trade, reduction in income and corporate tax rates, accelerated implementation of its privatisation programme, reform of the financial sector. Egypt ranks 77 on the Transparency International corruption index, a level similar to that of other countries of North Africa and the Middle East.

Economic growth has increased to about 7% of GDP, official inflation went up to around 10%, and the official external reserve position of the central bank is improving further. Subsidies on food and energy and the budget deficit are points of concern to the government.

Since 2004 a number of political reforms have been implemented: presidential elections with more than one candidate, more opposition parties and independent candidates campaigning for parliamentary elections, more press freedom, room for dialogue on human rights. The performance of the Egyptian government on service delivery is relatively good.

Why is Egypt a partner country to the Netherlands?
In 2003 it was decided to continue the development cooperation relation with Egypt. Egypt is an important partner in the Middle East often stressing dialogue and moderation in bilateral and multilateral for a. It plays a mediating role in the Israeli – Palestinian conflict.

Dutch development cooperation efforts are appreciated in Egypt. Our expertise and strategic orientation, contribute significantly to Egypt’s policies on poverty reduction, the over-arching objective of Dutch cooperation. Development cooperation also facilitates the dialogue with Egypt in areas such as governance, gender, human rights, improving the business climate.

The economic importance of Egypt for the Netherlands is increasing. Bilateral trade volume has grown significantly over the past few years to about one billion Euros annually. The Netherlands is one of the important providers of Foreign Direct Investment in Egypt.

How much international support does Egypt receive?
The United States is a important partner of Egypt. The volume of economic cooperation amounts to about 500 million USD a year over not including military cooperation. Other important partners to Egypt are the World Bank, the European Union and Japan. The volume of Dutch support is relatively limited but is appreciated for its added value and strategic approach.

What is the level of Dutch support to Egypt?
After restructuring our development cooperation portfolio, Dutch support to Egypt will be back to its previous level of 15 to 20 million Euro annually as of next year. The Netherlands plays a prominent role in donor coordination. It aims at harmonisation of procedures and alignment with Egypt’s policies.

How is the support from the Netherlands utilised?
About 60% of Dutch support to Egypt is directed to the water sector, investing in integrated water management, drinking water and sanitation and water user organisations. 20% goes to support on governance and human rights, addressing budget reform, transparency, decentralisation and human rights training. About 10% of Dutch support aims at improving the business climate in Egypt, improving the competitive edge of export sectors and promoting business cooperation. Finally, 10% of our support is directed to improving women and children’s rights including support to fighting Female Genital Mutilation, promoting Sexual Reproductive Health and Rights and promoting women’s emancipation.  

Egypt and the Millennium Development Goals (MDG’s)
According to reports Egypt has made good progress in realising the Millennium Development Goals (MDG’s). Dutch support is mainly focused on realising MDG1 (eradicating extreme poverty), MDG3 (promote gender equality and empower women) and MDG7 (sustainable development).