Production Transformation Policy Review of Egypt
Embracing Change, Achieving Prosperity
Egypt is one of Africa’s industrial heavyweights. Transforming the country's economy to sustain job-rich and sustainable growth are pivotal steps in its march towards prosperity. Today’s search for new development models, accelerated by the unfolding of the COVID-19 pandemic, calls for shifting up a gear in raising Egypt’s industrial capabilities to compete in an industry 4.0 and agro 4.0 landscape. The Production Transformation Policy Review (PTPR) of Egypt uses a forward-looking framework to assess the country's readiness to embrace change. This includes an analysis of the game-changing potential of the African Continental Free Trade Area (AfCFTA) and perspectives on agro-food and electronics (i.e. what in Egypt is referred to as part of the engineering sector), as well as identifying priorities for future reforms. This review is the result of government-business dialogue, and benefited from peer learning from Italy and Malaysia. It also resulted from international and multi-stakeholder knowledge sharing through a dedicated Peer Learning Group (PLG) and the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development.
Assessment and recommendations
Egypt is among Africa’s heavyweights, and a fast-growing economy. While the country reacted quickly to the COVID-19 pandemic, the global outlook remains uncertain. To advance on its path to prosperity, Egypt needs to continue implementing effective reforms, relying on a continental agenda that prioritises trade integration and industrialisation, a government capable of implementing reforms and a private sector ready to leverage new drivers of competitiveness. The country needs to address some persistent structural challenges, which are hampering future progress, notably continuing upgrading infrastructure, transforming its economic specialisation, innovating more and benefiting more from trade. Despite progress, the reforms agenda for Egypt remains vast. Among several areas, three issues appear as game changers for future reforms: i) investing in making the African Continental Free Trade Area (AfCFTA) a real development driver; ii) engaging the private sector in innovation and; iii) getting the policy-making process ready for the future.