Lagos, Nigeria – Egypt, under the leadership of Abdel Fattah El-Sisi, is reaping the rewards of a comprehensive program of economic and structural reforms that have reshaped the nation over the past decade. Through multi-billion-dollar investments, robust social policies, and improved infrastructure, the government has stabilized the economy, created jobs, and enhanced Egypt’s global competitiveness.
The economic reforms initiated in 2016 marked a turning point for Egypt’s economy. With support from the International Monetary Fund (IMF), the country implemented austerity measures and fiscal modernization efforts that resulted in an average GDP growth of 5.5% annually between 2017 and 2019, despite the global challenges posed by the COVID-19 pandemic.
By 2023, Egypt’s GDP had reached $404 billion, cementing its position as Africa’s second-largest economy after Nigeria.
Since adopting the IMF-backed reforms, Egypt has attracted over $35 billion in foreign direct investment (FDI)—a significant leap from the $10 billion recorded between 2010 and 2015.
Additionally, the country’s foreign currency reserves grew from $16 billion in 2016 to more than $44 billion in 2024, reinforcing macroeconomic stability. These achievements have positioned Egypt favorably in Africa, competing with emerging powers like South Africa and Kenya.
Structural reforms and investments in large-scale infrastructure projects have transformed Egypt’s labor market. Between 2016 and 2024, more than 3.5 million direct and indirect jobs were created, with significant contributions from the construction, energy, and transportation sectors. Landmark projects such as the New Administrative Capital and the Suez Canal expansion alone generated over 500,000 direct jobs.
On the social front, the “Takaful and Karama” program has benefited more than 10 million families, providing direct financial support to mitigate the impact of austerity measures.
Extreme poverty, which affected 32.5% of the population in 2016, dropped to 28% in 2023, according to CAPMAS (Central Agency for Public Mobilization and Statistics). Additionally, $5 billion in investments in health and education significantly improved living standards, raising literacy rates from 70% to 76% and modernizing over 300 public hospitals.
Egypt is leading a transformative infrastructure revolution, enhancing its logistical and energy capabilities. The expansion of the Suez Canal, completed in 2015, boosted maritime traffic capacity and generated record annual revenues of $8 billion in 2023, compared to $5 billion in 2014. This project also directly employed 45,000 workers during its construction, providing a vital economic boost.
Another milestone is the construction of the New Administrative Capital, a $58 billion project redefining urban planning in Egypt.
By 2024, the first phase will be completed, accommodating 6.5 million residents and creating over 1 million jobs.
In the energy sector, the Benban Solar Complex—the largest in Africa—has attracted more than $2 billion in investments and now provides clean energy to 1 million homes, significantly reducing reliance on fossil fuels.
The reforms also boosted private sector participation in Egypt’s economy. Regulatory modernization and streamlined bureaucratic processes enabled Egypt to climb 22 positions in the World Bank’s Ease of Doing Business Index since 2016.
The natural gas sector, in particular, experienced a revival, with the Zohr gas field becoming one of the Mediterranean’s largest discoveries and helping Egypt achieve energy self-sufficiency in 2019.
In foreign trade, Egypt’s exports more than doubled, rising from $22 billion in 2016 to $43 billion in 2023, led by natural gas, agricultural products, and textiles. Additionally, Egypt expanded its trade network, strengthening ties with Europe, the Middle East, and Africa.
The trade deficit shrank by 20%, driven by increased exports and import substitution through higher domestic production.
While the results are notable, challenges remain. Inflation, which peaked at 30% between 2016 and 2017, impacted living costs and placed pressure on middle- and lower-income households. However, the government has sought to mitigate these effects through social protection policies and initiatives to stimulate local production. Economic diversification is also a priority, with efforts focusing on agriculture, tourism, and technology.
Looking ahead, Egypt projects sustainable economic growth, with the government forecasting a GDP of $500 billion by 2027. Advancements in infrastructure, renewable energy, and logistics solidify the country’s strategic role as an economic hub in the Middle East and Africa, ensuring the long-term benefits of these reforms.
