COUNTRY FOCUS – EGYPT ARAB NATIONS
don’t create large numbers of jobs or other economic benefit to the general population.
Education reform equally important A fast-growing youth population now sees over 500,000 entering the labour market each year, which would require GDP growth of over 4 per cent to be absorbed. The government’s past successes, however, offer reason for hope. With approximately 40 per cent of Egypt’s population
USAID-funded agricultural programs have assisted farmers to increase their crop production. Photo by: Ben Barber, USAID
PPP projects in the pipeline include the building and maintenance of public schools, hospitals, potable and wastewater stations and freeways. The budget deficit, weighed down by high food and fuel
subsidies, consumes about 8 per cent of gross domestic product. Unemployment officially stands at 9 per cent, but many economists say the figure is much higher and doesn’t reflect rampant underemployment. Egypt’s trade is characterised by huge trade deficits – in
2009, Egypt’s exports surged up 22 per cent on the previous year, but imports also rose by 24 per cent, creating a US$27.2 billion deficit. Although Egypt relies heavily on crude oil and petroleum exports, the country also exports metal products, cotton, textiles and chemicals, while key imports are heavy machinery, chemicals, foodstuffs and wood products.
FDI encouraged through reforms In its 2008 annual report, the IMF acclaimed Egypt as one of the top countries undertaking serious economic reforms to foreign investment rules, subsidies, customs and fiscal policy. It has also begun the restructure and privatisation of state enterprises. The prime beneficiaries of foreign
direct investment were real estate, petroleum, telecommunications, banking and tourism, and the Minister of Investment recently said Egypt is setting a US$10 billion target for FDI in 2010. Few observers expect an easy
path to growth. A recent report by the Government’s General Authority of Investment says that much of the foreign direct investment coming into the country targets the petroleum and financial sectors, which
under the age of 25, the Egyptian Government is giving special emphasis to upgrading the quality of education at all levels. Egyptian university staff are sent overseas every year on scholarship to obtain advanced degrees. The emphasis on education in recent times has been shifting towards vocational education and training due to the current high unemployment rate. This has been a World Bank led reform. Austrade regards vocational education and training (VET) in Egypt – partnering with Egyptian technical colleges − and in Australia as an area for growth. Egyptian students seeking to study overseas are primarily
focused on graduate and undergraduate programs in engineering, computer science, business administration and education. Egyptian students numbers in Australia have grown from 391 in 2005 to 2256 in December 2009.
Australia looking west Australian exports to Egypt totalled A$452 million in 2008–09, consisting largely of ‘confidential items’, copper, wheat, coal and vegetables. Imports from Egypt were only A$33 million, mainly fertilisers, floor coverings, clothing and mineral oil additives. Austrade sees particular export opportunities in
foodstuffs (meat, dairy, food service), health and medical (pharmaceuticals, healthcare services and medical equipment), ICT and education. Two Australian mining
ABOVE: The Sphinx next to the Pyramids at Giza in Egypt.
LEFT: Kom Ombo Temple.
Photos by: Ijanderson977
companies are bringing their expertise to Egypt. Centamin Egypt expects to commence commercial production of gold at its Sukari mine in the Western Desert by the end of 2010, while Gippsland Ltd already has two tantalum- tin projects in the Central
Eastern Desert and is also exploring for gold. These examples are proof that Egypt’s economic reform
program is enticing more Australian investment into Egypt (A$248 million in 2008), mainly in the mining and resource processing sectors. p
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