Egypt’s varied history, straddling multiple geopolitical and economic spheres, continues to shape the country’s development. However, this does not come without challenges. Food security uncertainty stemming from Russia’s invasion of Ukraine in early 2022 is a particular headwind, in combination with associated issues like inflation and foreign exchange risk. Moreover, 29.7% of Egyptians sti
Financial technology (fintech) firms are gaining market share that was formerly the preserve of established remittance service providers. Remittances have grown in importance in recent decades and now constitute the largest source of foreign income for many developing economies. They also tend to be countercyclical, increasing during economic downturns or natural disasters when other capital flows…
Egypt has invested heavily in improving transport, housing and energy infrastructure in recent years. The government has been moving to establish new railway lines, renovate seaports and airports, and improve road networks (see Transport chapter). It has built new power plants, established new urban areas and expanded the country’s strategic Suez Canal. Much of the government’s current strategy…
Even when faced with complex regional politics, currency fluctuations and the impact of global crises such as the Covid-19 pandemic, Egypt’s banking sector remained resilient amid wider economic pressures in recent years. Part of this is attributed to the sector’s size – with Egypt having the largest banking system in North Africa – and stability. The industry has played an important role in…
With reforms steadily changing the nature of Egypt’s economy, capital markets are finding new footing in an increasingly competitive region. The long-term growth prospects for the Egyptian Exchange (EGX) are closely linked to macroeconomic performance, as a host of development projects and regulatory upgrades have helped to keep GDP growth rates up. In the near team, however, inflationary pressure…
The insurance sector’s ongoing reform process has strengthened the regulatory environment and fundamentals remain relatively solid. While some regulations have placed new demands on insurers, the fact remains that the country’s low level of insurance penetration translates to significant unexplored potential – and further regulatory reforms are expected to increase the number of compulsory products.…
Interview:Hussein Abaza To what extent can banks help promote sustainable or green economic growth? HUSSEIN ABAZA: The reality brought about by climate change, the Covid-19 pandemic and rising income inequality has necessitated a new approach to tackle the challenges at hand in a collective manner. Many countries – Egypt included – have begun to feel the effects of climate change in earnest,…
Interview:Ayman Kandeel How have the Covid-19 pandemic and the roll out of universal health coverage affected demand for insurance in the local market? AYMAN KANDEEL: As is the case across the range of insurance lines, volatility or unexpected expenses raise awareness of risk and, with it, the benefits of insurance. The pandemic played an essential role in increasing awareness around the importance…
Years of careful financial regulation have helped to create a robust banking system. The sector has continued to boast low levels of non-performing loans, high capital adequacy ratios and sufficient provisioning. As a result, by 2022 it was clear that Egypt had avoided some of the worst economic consequences of the Covid-19 pandemic seen elsewhere. As of April 2022 around two-thirds of Egypt’s…
La pandémie a créé un besoin urgent de plus de capital patient en Afrique. Les gouvernements de tout le continent étant confrontés à des contraintes budgétaires tout en reconnaissant l'importance des investissements dans les infrastructures et les services essentiels, le PE et le VC offrent une voie intéressante pour le soutien financier. La pandémie a également accéléré la numérisation…