Progress in the fight against corruption

Compared to neighbouring countries, Egypt has a diversified industry and a well-developed infrastructure with new railway lines and ports. Important sectors include gas exploration, chemicals, mining, tourism and agriculture.

In addition, there is wind and solar energy, where Egypt wants to intensify its cooperation with Germany and the EU. For example, one of the largest wind farms in the world is planned in Upper Egypt (capacity: 10 gigawatts).

Thanks to its infrastructure and interesting location, Egypt is successfully positioning itself as a “Gateway to Africa” in order to benefit from economic and trade growth on the continent. The country has also recently made great progress in the fight against corruption (see below). Barriers to investment are high inflation, bureaucracy and low purchasing power.

Economy. According to the IMF, the economy in Egypt grew by 4.2 percent in 2023. For the current year, economists predict a growth rate of 3.6 percent. The gross domestic product per capita rose from the equivalent of 1057 to 4295 dollars in the last 20 years.

Economic development has been particularly strong since 2018. But inflation has risen significantly of late and recently stood at a worrying 23.5 per cent. According to forecasts, this year the rate could even exceed the 30 per cent mark. Public debt is also at a high level of 92,7 percent of GDP.

Population. Egypt has around 112 million inhabitants. Annual population growth has declined from 2.3 to 1.6 percent in the last ten years. In the same period, the fertility rate has fallen from 3.4 to 2.9 children per woman. Life expectancy was at 70 years recently. 100 percent of the population has access to electricity (twenty years ago, it was 97,4 percent).

Governance. On Transparency International’s latest Corruption Perceptions Index, Egypt ranks 108th out of 180. The score of 35 points brings the country to the same level as countries like Bosnia, Panama and Thailand. In the last year in particular, Egypt has made great progress: the country gained 5 points, compared to a TI score of 30 points in 2022.

Sources and further information:

World Bank: https://data.worldbank.org/country/egypt-arab-rep

Africa Business Guide https://www.africa-business-guide.de/de/maerkte/aegypten

Germany Trade & Invest: https://www.gtai.de/resource/blob/584870/9be3fec08b18727cc17eeff4adc35cc9/GTAI-Wirtschaftsdaten_Dezember2023_%C3%84gypten.pdf

Transparency International: https://www.transparency.org/en/cpi/2023/index/nga