IMPROVING EGYPT'S ECONOMY

Collaboration on promoting trade and investment to generate more and better jobs for Egypt's population has long been central to the relationship between Egypt and the United States.  Since 1975, the United States Agency for International Development (USAID) has provided more than $27 billion to promote economic prosperity in Egypt and to support Egypt's efforts to become a fully integrated and competitive participant in the global economy.  The new assistance strategy through 2009 provides support of these efforts with $500 million annually.

To assist the Government of Egypt strengthen the business environment to promote trade and investment, USAID/Egypt programs provide:

A special focus is to ensure that Egypt's industries develop as sustainable long-term sources of jobs and income generation.

USAID’s Private Sector Commodity Import Program (CIP) expands availability of foreign exchange that Egyptian private businesses can use to import U.S.-made goods.  The program brings $200 million of foreign exchange through 31 Egyptian banks annually. Transactions as low as $10,000 help small and medium enterprises expand their economic opportunities.  Preferential access encourages participation by businesses in Upper Egypt, supports exporters, and promotes environment protection. 

In addition to allowing more imports, the foreign exchange sales contribute to the government’s development budget.

CREATING A REAL ESTATE FINANCE INDUSTRY 

Real estate financing is limited in Egypt.  USAID supports the efforts to make the dream of home ownership a reality for millions of Egyptians. USAID assists:

• Development of the real estate finance industry;
• Modernization of property registration; and
• Establishing a credit information system to help more families qualify as good borrowers.

MAKING TRADE AND INVESTMENT EASIER

Attracting more trade and investment requires supportive trade regimes, legal and regulatory frameworks, and timely market information. USAID helps Egypt in:

• Improving customs and port administration relating to clearance procedures, inspection of goods, trade services, and efficient transportation;
• Attracting technology-based investment by protecting intellectual property rights, through increased public awareness, world-class laws and regulations; and

DEVELOPING EGYPT'S SMALL AND MICRO ENTERPRISE (SME) SECTOR 

Since 1991, USAID has played a key role in the development of Egypt's small and micro enterprises through financial and technical support to over 70% of activities in the sector. By 2007, the programs USAID helped create will bring LE 1 billion a year to serve 700,000 borrowers, more than 75% of them women. USAID-assisted Egyptian entities provide:

• Credit facilities and financial services, especially for female-headed households in Egypt’s economically disadvantaged areas to help them start or expand their businesses. USAID assists foundations and banks in developing their financial services to SMEs, and has supported the establishment of the Credit Guarantee Corporation for small enterprises that lack the collateral needed to get bank loans.
• Technical assistance to upgrade microfinance institutions’ management, marketing and entrepreneurial skills.

BROADENING THE BASE OF INFORMATION AND COMMUNICATIONS TECHNOLOGY  

To assist government agencies, businesses and consumers adopt Information and Communications Technology (ICT), USAID helps to:

• Develop Egypt’s technical capacity in ICT;
• Improve the legal and regulatory environment for ICT; and
• Encourage usage of ICT throughout Egypt, including e-Government and e-Commerce.

IMPROVING RURAL INCOME AND EMPLOYMENT OPPORTUNITIES

To raise productivity and incomes in Egypt’s agricultural sector, USAID helps expand access of Egypt’s farmers and agribusiness firms to technology, markets, and institutions. USAID works to:

• Expand the base of private sector agribusiness firms that can compete globally;
• Improve linkages between firms and suppliers of high value exportable horticultural commodities;
• Increase the value of exports of fresh and processed horticultural products; and
• Increase the production and availability of high quality livestock and dairy products in the domestic market. 

Also: see how USAID provides assistance to the World Food Program that helps once-barren hills bear fruit in Egypt.                                        World Food Program - hills bear fruit

This page was last updated on: February 8, 2007