EGYPT'S VOLUNTARY NATIONAL REVIEW 2018

EGYPT′S VOLUNTARY NATIONAL REVIEW 2018

EGYPT′S VOLUNTARY NATIONAL REVIEW 2018

Copyright @ 2018 By the Ministry of Planning, Monitoring and Administrative Reform 9 St. Salah Salem Street, Nasr City, Cairo, Egypt All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by means, electronic, mechanical, photocopying, recording or otherwise, without prior permission. Acknowledgments: The publication of the Egypt’s National Voluntary Report 2018 was made possible through the support of the United Nations Resident Coordinator Office and the United Nations Development Programme. ii Acknowledgments

Contents Acronyms 4 1. Opening Statement 6 2. Policy-Enabling Environment 8 2.1. Governing Framework 8 2.2. Leaving No One Behind as an Overarching Principle 10 2.3. Monitoring and Evaluation Mechanisms 15 3. Review Methodology 17 4. Bold Reforms in the Face of Challenges 18 4.1. Egypt's Economic Reform Program 18 4.2 Mega-Projects to Foster Growth 22 5. Progress Towards Goals and Targets 24 SDG 1: No Poverty 25 SDG 2: Zero Hunger 27 SDG 3: Good Health and Well-Being 28 SDG 4: Quality Education 30 SDG 5: Gender Equality 32 SDG 6: Clean Water and Sanitation 34 SDG 7: Affordable and Clean Energy 37 SDG 8: Decent Work and Economic Growth 40 SDG 9: Industry, Innovation and Infrastructure 42 SDG 10: Reduced Inequalities 43 SDG 11: Sustainable Cities and Communities 44 SDG 12: Responsible Consumption and Production 49 SDG 13: Climate Action 51 SDG 14: Life Below Water 53 SDG 15: Life on Land 54 SDG 16: Peace, Justice and Strong Institutions 56 SDG 17: Strengthen Implementation and Partnerships 58 6. Challenges 59 7. Final Word 62 Annexes 64 Egypt's Voluntary National Review 2018 1

List of Figures Figure 1: Spending on Subsidies and Social Programs 11 19 Figure 2: Egypt’s Budget Deficit 20 21 Figure 3: Net Official Reserves 21 38 Figure 4: Egypt’s Real GDP Growth Rate (%) 52 Figure 5: Unemployment Rates Post Economic Reform(%) Figure 6: Expenses as Percentage of Budget and GDP Figure 7: Policy Response to Climate Change List of Tables Table 1: Egypt's Indicators – Tier Classification 15 Table 2: SDG 1 Indicators 25 Table 3: SDG 2 Indicators 27 Table 4: SDG 3 Indicators 28 Table 5: SDG 4 Indicators 30 Table 6: SDG 5 Indicators 32 Table 7: SDG 6 Indicators 34 Table 8: SDG 7 Indicators 37 Table 9: SDG 8 Indicators 40 Table 10: SDG 9 Indicators 42 Table 11: SDG 10 Indicators 43 Table 12: SDG 11 Indicators 44 Table 13: SDG 12 Indicators 49 Table 14: SDG 13 Indicators 51 Table 15: SDG 14 Indicators 53 Table 16: SDG 15 Indicators 54 Table 17: SDG 16 Indicators 56 2 Contents

List of Boxes Box 1: Youth Engagement 9 Box 2: Sakan Karim 12 Box 3: Non-Governmental Monitoring and Evaluation Efforts 16 Box 4: Adverse Impact of the Grand Ethiopian Renaissance Dam (GERD) 35 Box 5: Sustainable Cities 45 Box 6: Al-Asmarat 47 Egypt's Voluntary National Review 2018 3

Acronyms AAAA Addis Ababa Action Agenda APE Association for the Protection of the Environment ATM Automated Teller Machines ATMP Active Turbine Management Program BBC British Broadcasting Corporation BUR Biennial Update Report CAPMAS Central Agency for Public Mobilization and Statistics CBE Central Bank of Egypt CBNRM Community-Based Natural Resources Management CO2e Carbon Dioxide Equivalent CSR Corporate Social Responsibility DHS Demographic and Health Survey EBDA Egyptian Bio-Dynamic Association EEAA Egyptian Environmental Affairs Agency EFF Extended Fund Facility EGP Egyptian Pound ENID Egypt Network for Integrated Development ENOW Egypt National Observatory for Women EPASP Egypt’s Protected Areas Self-Financing Project GCNE Global Compact Network Egypt GDP Gross Domestic Product GERD Grand Ethiopian Renaissance Dam GNI Gross National Income GNP Gross National Product GW Gigawatt HLPF High-Level Political Forum IAEG-SDGs Inter-Agency and Expert Group on Sustainable Development Goal Indicators ICZM Integrated Coastal Zone Management IDSC Information and Decision Support Center IMF International Monetary Fund IPCC Intergovernmental Panel on Climate Change kWh Kilowatt Hour 4 Acronyms

LPG Liquefied Petroleum Gas MSB Migratory Soaring Birds MSMEs Micro-, Small- and Medium-Sized Enterprises MW Megawatt MPMAR Ministry of Planning, Monitoring and Administrative Reform MOSS Ministry of Social Solidarity MIIC Ministry of Investment and International Cooperation NCCCC National Coordinating Committee for Combating Corruption NCCPIM National Coordinating Committee on Combating and Preventing Illegal Migration NCW National Council for Women NEEAP National Energy Efficiency Action Plan NEEDS National Environmental, Economic and Development Study NGO Non-Governmental Organization NIR Net International Reserves NSWMP National Solid Waste Management Program NUDP National Urban Development Plan 2052 ODA Official Development Assistance PERSGA Regional Organization for the Conservation of the Environment of the Red Sea & Gulf of Aden PMI Purchasing Managers’ Indexes SDGs Sustainable Development Goals SDS Sustainable Development Strategy: Egypt Vision 2030 STA ElSewedy Technical Academy  UNFCCC United Nations Framework Convention on Climate Change UNICEF United Nations Children’s Fund VNR Voluntary National Review WMRA Waste Management Regulatory Agency Egypt's Voluntary National Review 2018 5

1. Opening Statement The Government of Egypt is committed to its fiscal resources from programs of direct achieving the Sustainable Development Goals price subsidies, especially in energy, towards (SDGs). This commitment is reflected in its better-targeted cash transfer programs, both understanding of the intertwined nature of conditional and unconditional. These cash sustainable development and is embodied in transfer programs have witnessed a substantial the framework of Egypt’s national strategy, increase in the number of beneficiaries and “Sustainable Development Strategy: Egypt the amount of financial support they distribute Vision 2030” (SDS). The strategy reflects the since the reforms began in 2016. three dimensions of sustainable development: economic, social and environmental. The plan Government programs in infrastructure, is a national framework that guides and sets particularly those in housing, energy and policies and programs in order to achieve the water, are ensuring that Egypt makes SDGs, as well as other national objectives. The considerable progress towards achieving the SDS is not only a strategy for the Government, SDGs, particularly in the long term. Egypt’s but also a plan for all stakeholders, including the housing sector is rapidly expanding in order private sector, civil society and international to accommodate the needs of an increasing organizations. population and to diffuse the extremely high population densities of major cities. Multiple Given the importance of creating an enabling housing projects are targeting different environment for sustainable development, income groups, especially low-income groups, the Government of Egypt has embarked on a through a large social housing program. The homegrown economic reform program that Government also plans to develop 15 new is supported by the international financial cities, guided by principles of sustainability. institutions. The program includes long In addition, Egypt has increased its capacity overdue economic measures to ensure to produce electricity by at least 15 gigawatts, macroeconomic stability, increase social using advanced and efficient technologies. The protection and place Egypt on a high-growth Government has taken major steps to reform trajectory that is inclusive of all classes. These the regulatory framework of its electricity reforms included liberalizing the exchange rate sector, allowing increased private sector regime, consolidating government finances and participation and an effective regulatory role improving the investment environment. While for the state. For the first time, the private necessary, some of these measures have had sector is producing renewable energy and an adverse impact on Egyptian households, can compete with the Government to provide which in turn has required an expansion power for industrial and residential usage. in the size and scope of social protection programs. In order not to leave anyone The scarcity of water, and the associated behind, the Government has also redirected regional challenges, is a major driver for the 6 Opening Statement

Government to actively implement projects Egypt to advance rapidly in the implementation that ensure efficient use of water resources, of the SDS, its national strategy, and of increased availability of fresh water resources, the 2030 Agenda, with full engagement and improved quality of water. Moreover, the from stakeholders. The role of both the Government, in collaboration with international private sector and civil society is key in the organizations, has expanded its program of realization of these goals. The inclusivity and monitoring water pollution along the Nile. transformability aspects of the 2030 Agenda and its national counterpart necessitate active The economic reform program has, thus far, contributions from both the private sector and achieved its objective of macroeconomic civil society, and given this, the Government of stabilization. It also aims to enhance Egypt is working to capitalize on the positive competitiveness in international markets, synergies between the combined efforts of and to continue to improve the well-being of the Government, the private sector and civil Egyptian citizens. This program will enable society to achieve this ambitious agenda. Egypt's Voluntary National Review 2018 7

2. Policy-Enabling Environment 2.1 Governing Framework Out of Egypt’s commitment to achieving the national strategy, whereby the national sustainable development, the Government strategy acts as the national version of the of Egypt launched its first-ever sustainable SDGs. development strategy, Sustainable Development Strategy: Egypt Vision 2030 (SDS), in February The localization of the SDGs through the 2016. The strategy is aligned with the 17 SDS was adopted by a number of ministries SDGs, as well as the African Agenda 2063, and entities that have developed their own and acts as the governing framework for all medium- and long-term strategies: the National development programs and projects that Strategy for Science and Technology for will be implemented until 2030. The SDS is Sustainable Development 2030 (the Ministry the first long-term strategy that has been of Higher Education and Scientific Research); developed in Egypt following a participatory, the Industry and Trade Development Strategy open and transparent approach involving all 2020 (the Ministry of Trade and Industry); relevant stakeholders. Egypt’s Education Transformation Program 2030 (the Ministry of Education and Technical The launch of the strategy was followed by Education); Integrated Energy Strategy 2035 the establishment of a national committee, (the Ministry of Electricity and Renewable the National Committee for Monitoring Energy); and the Agricultural Sustainable the Implementation of the Sustainable Development Strategy (the Ministry of Development Goals, as the result of a prime Agriculture and Land Reclamation). ministerial decree. The committee falls under the remit of the prime minister’s office and is In an unprecedented move towards translating composed of representatives of 17 ministries the concept of inclusive sustainable and state entities.1 The committee is mandated development into action, the National Council to act collaboratively to ensure that Egypt is for Women (NCW) has also launched its moving in the right direction towards achieving National Strategy for Women Empowerment sustainable development. The committee 2030. The strategy focuses on empowering also ensures the alignment of the SDGs with women to accelerate the achievement of sustainable development, as well as 1 The Ministry of Social Solidarity, Ministry of promoting gender equality in all fields of life. Environment, Ministry of Investment and International Likewise, the National Council for Childhood Cooperation, Ministry of Local Development, Ministry and Motherhood launched its strategy in April of Education and Technical Education, Ministry of 2018, which aims at promoting the well-being Higher Education and Scientific Research, Ministry of mothers and children. of Planning, Monitoring and Administrative Reform, National Council for Women, National Council for The governing policy framework outlined Childhood and Motherhood, Ministry of Foreign Affairs, above was further reinforced by the Ministry of Housing, Utilities and Urban Communities, establishment of sustainable development Ministry of Health and Population, Ministry of Finance, units and working groups in different ministries Central Agency for Public Mobilization and Statistics, Accountability State Authority, National Council for Disability Affairs, and the Cabinet’s Information and Decision Support Center. 8 Policy-Enabling Environment

and entities assigned to act as the focal points geopolitical situation, and the desire to ensure for developing and implementing sustainable a secure and stable economic and business development plans and strategies within their environment conducive to investment and own entities. The units and working groups development. As such, the review process was also facilitate the coordination and monitoring initiated based on the following principles: process, led by the Ministry of Planning, Monitoring and Administrative Reform.  Reinforcing the multidimensional aspect of sustainable development and its Furthermore, two years since the launch of the interconnected nature. SDS, the Ministry of Planning, Monitoring and Administrative Reform is leading an update  Highlighting the benefits of sustainable and review process of the strategy. This review development, i.e. adoption of a “green process is necessary in order to account for economy” as a tool to achieve sustainable the major structural changes that Egypt has development. witnessed in the past two years. The changes were needed to reflect the introduction of the  Stakeholderengagementtocreateownership; structural adjustment program in 2016, and the process involved extensive stakeholder the outcome of the 2017 national census, consultations and participation to provide which revealed increased rates of population input and contributions to the sustainable growth amounting to 2.56 percent, and the development strategy. Stakeholders impact this growth has on the already-strained involved included parliamentarians, trade state budget, on infrastructure, and on social unions, women, youth (Box 1), NGOs, and services. The high priority the country attaches the private sector. Over 60 workshops were to achieving food, water, and energy security organized and convened for the designated also had to be clearly reflected in the strategy. teams from the different ministries as well This is in addition to the country’s current as representatives of relevant stakeholders. Box 1: Youth Engagement The Youth Sustainable Development Initiative A representative group of students from different universities from all regions of the country was formed, with the objective of raising awareness of the concept of sustainable development and of the SDS. The initiative aims at increasing youth engagement in the review process, as well as opening a channel of communication between the youth and the Government. Building the capacities of young people as future leaders is also a core function of the initiative. The group is actively participating in the national strategy review process by generating innovative ideas and proposing new projects that will contribute to achieving sustainable development. Outcome: Around 4,000 project ideas tackling 27 different topics were proposed. Applicable and feasible ideas were selected and submitted for inclusion in the strategy document. An action plan is currently being developed to outline the mechanism by which the youth can actively participate in the sustainable development planning and monitoring process, as well as creating a generation of sustainable development ambassadors across Egypt. Egypt's Voluntary National Review 2018 9

Additionally, in an effort to increase particularly the youth to actively participate stakeholders’ engagement, a mobile in the review process. The application also application, “Sharek” (“Participate”), was aims at raising awareness of sustainable launched by the Ministry of Planning, development in general and of the goals of the Monitoring and Administrative Reform SDS in particular. as a digital platform to allow citizens and 2.2 Leaving No One Behind as an Overarching Principle Leaving no one behind entails prioritizing of people with disabilities, as reflected by human dignity and rights and ensuring that President Abdel-Fattah Al-Sisi’s declaration of that no goal is considered met unless met 2018 as the Year for People with Disabilities. for all. The principle is emphasized in the This is in addition to launching programs SDGs because, despite the progress made designed to empower women, young people in reducing poverty and injustice worldwide, and the poor. the most impoverished, the excluded, the disadvantaged, and those at risk of violence Conditional Cash Transfer Programs: and discrimination still face inequalities when Takaful and Karama it comes to accessing resources and securing their rights. There has been a substantial transformation in the design, method of delivery and scope The eradication of extreme poverty, promotion of social programs in recent years. The of gender equality, empowerment of women, Government has sought to improve the youth and people with disabilities, and the allocation of its social programs by revisiting achievement of balanced regional development the targeting and the means of social protection are the core principles of Egypt’s national they provide. As a result, the allocation sustainable development strategy, and these structure of these programs has been changed priorities are in compliance with the principle (Figure 1). There is less reliance on direct of leaving no one behind. Accordingly, the price subsidy, especially for fossil fuels, and an Government is committed to improving the increased reliance on delivering cash transfers, effectiveness of social programs and on whether conditional on school enrolment, expanding them to cover more citizens in antenatal care, or childcare for children in the need. The Government is also working on the age bracket of 0-6 years old; or unconditional, protection, rehabilitation, and empowerment such as the social security pension. 10 Policy-Enabling Environment

Figure 1: Spending on Subsidies and Social Programs 2011/2012 budget 2017/2018 budget Source: Ministry of Finance. The allocation of funding to the two key cash aimed at promoting social inclusion through transfer programs, Takaful and Karama, has integration of the most vulnerable, namely the increased during recent years, as part of the elderly (those over 65 years old), people with Government’s strategy of redirecting its social disabilities, and, in a recent addition, orphaned spending programs to better target the most children. Total enrolment currently stands at vulnerable in society. 306,000 households. Takaful (“Solidarity”) is a monthly conditional The programs’ reach is countrywide, including cash transfer for households with children, 27 Governorates, 345 districts and 5,630 aiming at promoting capital accumulation villages and hamlets. An overall 5.4 million by providing family income support while households applied for the program and incentivizing poor households to invest in were registered on a modern database, their children’s health, education and nutrition totalling 23 million individuals. Out of those by imposing conditions such as enrolment who were registered, 2.3 million households of children in schools (with a minimum of were accepted and enrolled into the two 80 percent attendance) and getting the programs, with a total number of 9.5 million necessary health check-ups, including child individuals. This sophisticated database is immunization and growth monitoring for the first in Egypt to include poor and near- children aged 0-5 years old, and antenatal poor households, and is currently being used care for pregnant mothers. Approximately to develop a unified database registry for all 2,268,000 families are enrolled in the program individuals through their identity card number. at present, more than triple the number This registry is expected to be completed by (707,000) enrolled in the fiscal year 2015/16.2 the Administrative Control Authority before Karama (“Dignity”), on the other hand, is a the end of 2018. monthly unconditional cash transfer program The Takaful and Karama programs have 2 The Egyptian fiscal year runs from 1 July to 30 June. expanded nationwide through four consecutive phases. Substantial human and financial Egypt's Voluntary National Review 2018 11

investments have been made, as well as the housing for low-income households. Protocols necessary administrative processes to set up were signed by the Ministry of Social Solidarity the programs and to allow targeting of eligible with the Holding Company for Water and poor households, based on both geographical Waste Water and with eight NGOs in targeting and proxy means testing. In December 2017 to implement the first phase addition, an elaborate system of external of the program, the objective of which is validation of data of registered beneficiaries to contribute to providing decent housing and the disbursement mechanism for the services to 67,000 households in 27 villages entitled cash transfers through post offices in 17 administrative centers in the poorest five across Egypt has been put in place. To support Governorates, namely Minya, Assiut, Sohag, program implementation, an electronically- Qena and Luxor. The ministry has also signed based management information system was a protocol with the Holding Company for rolled out and has been continuously updated Water and Waste Water and its subsidiaries for the processes of registration, validation, to oversee all extension and installation works payment, and grievance redress and retrieval, in public drinking water networks and public and currently work is underway for the design sewage systems, targeting villages from of applications for case management and among the poorest, based on their deficiency conditionality, to be added to the management in basic services. The Ministry of Health and information system. the Ministry of Planning, Monitoring and Administrative Reform are also contributing Decent Housing for Poor and to expanding the project by increasing the Vulnerable Households: Sakan Karim coverage of households in more impoverished villages (Box 2). Sakan Karim (“Decent Housing”) is a government program that aims to provide Box 2: Sakan Karim Sakan Karim: A Protection Policy and a Roof Key Figures: Project target: 67,000 households in poor rural areas. Households completed: 22,158 Investments: EGP 550 million Target Governorates: Minya, Assiut, Sohag, Qena and Luxor (first phase) Cost per house: Min. of EGP 3,000 to a max. of EGP 40,000 Partners: Ministry of Health, Ministry of Planning, Monitoring and Administrative Reform, NGOs’ Support Fund, 8 NGOs, and the private sector The Ministry of Social Solidarity is enhancing interventions aimed at raising the efficiency and quality of housing via the Sakan Karim program, especially in the villages that do not have public sewage and sanitation networks, where it is difficult to build water connections to avoid the risk of accumulating groundwater. Partnerships will be strengthened with the Central Agency for Reconstruction under the Ministry of Housing, to increase the latter’s 12 Policy-Enabling Environment

financing of the program, where the Ministry of Housing will bear 50% of the total cost of improving the efficiency of houses, and the Ministry of Social Solidarity and its partner NGOs will bear the other 50%. Criteria for eligibility of houses that will be provided with Sakan Karim services are as follows: a. Most vulnerable, low-income families who are eligible for cash transfers. b. The area to be rehabilitated shall not exceed 60 square meters. c. Priority goes to families benefiting from Takaful and Karama programs. d. The house must be an owned property. e. The beneficiary must be a resident of the house. Protection, Rehabilitation and and services that the new law entails. This Empowerment of People with plan will start in July 2018 and is expected Disabilities to be a regular mechanism for monitoring performance and results on disability issues One of the flagship accomplishments of the in Egypt. The Government of Egypt is shifting Government of Egypt in protecting the most from deploying an institutional and medical vulnerable, and one of the main outcomes approach to managing disabilities to a societal of announcing 2018 as the Year for People and functional approach. Under this new with Disabilities, was law No. 10 for 2018 on approach, it is promoting the idea that people the Rights of Persons with Disabilities, which with disabilities are “differently abled” people, was issued in February this year after being and that society bears the responsibility to approved by the parliament. The new law, integrate them, secure their rights and utilize which was worked on by the Ministry of Social their capacities, both for their own sake and for Solidarity in partnership with the National the sake of social and economic development Council for Disability and several NGOs, is the at large. Currently more than 1.055 million first Egyptian law that specifically addresses people with disabilities benefit from different the rights of people with disabilities, and it cash transfer programs (801,000 from the provides an array of new beneficial measures. Daman social pension program, and 254,000 It provides the disabled with tax cuts and from the Karama program), at a total annual requires the Government and the private government expenditure of EGP 5 billion. sector to allocate five percent of vacant jobs to people with disabilities, based on their In addition to supporting the establishment qualifications and capacities. It will require of the legal framework for integrating people transport service providers to dedicate space with disabilities and financing the cash transfer for disabled commuters. Under the bill’s programs, the Government also supports mandate, the disabled will also receive free other programs that aim at including this medical treatment at state-run hospitals. group in the economy and providing them with social and medical services. Many of these In addition, the Ministry of Social Solidarity programs are either run by NGOs or done in is collaborating with more than 12 ministries collaboration with the private sector. Some of and 50 NGOs that specialize in disability these programs include: issues to create an annual plan on disability that will help respond to the package of rights Egypt's Voluntary National Review 2018 13

 A recruitment unit established at the vocational and business development training Ministry of Social Solidarity to assist people for 31,425 women. Over the last three years it with disabilities who have the capacity to has released EGP 193 million to fund 69,000 work to find relevant job opportunities; projects targeting low-income, poor and more than 1,045 people have been vulnerable households, with more than 90 employed as a result of these efforts, in percent of the money targeting rural women. partnership with 20 private companies. In addition, Nasser Social Bank is leading a  Collaboration and coordination with huge microfinance project, funded by state 50 NGOs and foundations to develop a charitable fund Tahya Masr (“Long Live Egypt”) database of their most important activities with a total amount of EGP 250 million, to and divide them according to the four types increase income generation opportunities for of disabilities, and facilitate joint initiatives. women and break the cycle of poverty. In 2017 it provided 6,483 women with loans worth  Provision of scholarships for students with approximately EGP 97.4 million. visual disabilities in 18 public universities, with total funds of EGP 900,000 per year. Economic Development of Low- Other Programs Income Families and Rural Women The Government of Egypt is also working Efforts to foster the economic empowerment to protect the vulnerable by increasing safe of those experiencing poverty and of rural employment opportunities by allowing access women take different forms, to accommodate to markets and building capacities. It has the needs and lifestyles of the targeted groups. launched an innovative life insurance program, The following are the various interventions the Aman (“Security”) certificate, for informal adopted by the Ministry of Social Solidarity in workers. This certificate is both an insurance that area, targeting young people and women mechanism that offers protection against between 21 and 55 years old. economic shocks that could severely affect these workers and their households, and a  Training women on vocational, technical savings mechanism to allow these workers to and financial aspects of starting and get a return on their savings. managing income-generating and small/ micro projects. Women survivors of violence and their children are provided protection through provision  Providing asset transfers to poor women of a comprehensive set of services such as with minimal interest. shelter, legal aid, economic empowerment, social and psychological support, and there  Providing loans and microfinance to start are efforts to raise awareness about gender- income-generating projects. based violence. These services are provided in centers that cover eight Governorates: Cairo,  Providing non-financial services and Giza, Qaliubiya, Alexandria, Minya, Daqahliya, technical support and follow-up. Fayoum and Beni Suef. In 2017, the Ministry of Social Solidarity, in collaboration with NGOs, carried out 14 Policy-Enabling Environment

2.3 Monitoring and Evaluation Mechanisms Further to the planning framework presented member of the Inter-agency and Expert Group above, and to Egypt’s adoption of the principle on SDG Indicators (IAEG-SDGs), plays a of leaving no one behind, the Government pivotal role in the monitoring process of the of Egypt is committed to incorporating the sustainable development goals and the SDS concept of sustainable development into each through its sustainable development unit. The and every project that is being implemented. unit focuses on the classification, identification As such, public investment allocation decisions and measurement of indicators used in both are based on the prioritization of projects that the SDGs and in the national sustainable achieve sustainable development in all its development strategy. The unit also works on dimensions. The integrated electronic system mapping the different indicators used in the for planning and monitoring is the Ministry SDGs and in the national strategy to maximize of Planning, Monitoring and Administrative the number of relevant indicators that are Reform’s tool to ensure the projects’ compliance being utilized. Additionally, one of the unit’s with the criteria of sustainability. The electronic most important mandates is the production system links all projects submitted by public of the periodical national statistics report on entities to the goals and key performance the SDGs. The first national statistical report indicators of the SDS. This link enhances the on the SDG indicators was launched in May process of monitoring and evaluation, whereby 2018; it outlines the classification of SDG the projects’ progress and performance are indicators into the three tiers prescribed by evaluated based on their contribution to the the global indicator framework on the basis of nation’s goals and achievement of balanced their level of methodological development and regional development. the availability of data (Table 1). In tandem, the Egypt SDG Observatory was launched in Additionally, the transformation from a line- collaboration with UNICEF. The observatory3 item budget to performance-based budgeting provides a digital platform for tracking progress is gradually being implemented in Egypt’s towards the SDGs in Egypt. Annex 1 provides a state budget. The transformation reinforces summary of the number of indicators available, the concept of matching expenses and not available and not applicable for each goal. investments to goals and key performance indicators. Ministries undergoing the budget Table 1: Egypt’s Indicators - Tier transformation in pilot form receive intensive Classification workshops and consultations from both the Ministry of Planning, Monitoring and Classification Percentage Administrative Reform and the Ministry of Tier 1 35.7% Finance to ensure that the alignment process Tier 2 29.1% is properly implemented. Performance-based Tier 3 32.4% budgeting paves the way for the effective and Not applicable 2.9% efficient utilization of public resources, making Total 100%  it one of the financial tools that aid in realizing the goals of sustainable development. 3 See http://www.egyptsdgobservatory.info. Concurrently, the Central Agency for Public Mobilization and Statistics (CAPMAS), a Egypt's Voluntary National Review 2018 15

In line with the unit’s main areas of work, not reflect regional development disparities, the Tafael (“Activation”) project to measure disparities which must be tackled to ensure indicators at the Governorate level was sustainable development goals are met. The launched. The project stems from the project aims at collecting data at the level Government’s recognition of the inadequacy of of municipalities by actively engaging them indicators at the Governorate level, which was in the process. This not only improves the regarded as one of the major obstacles to the quality of data collection, but also ensures the achievement of the Millennium Development sustainability of data production. Goals. Measurements at the national level do Box 3: Non-Governmental Monitoring and Evaluation Efforts The launch of the SDGs in 2015 has generated challenges for developing countries that have limited data on development issues. While classic methods of data collection are often expensive and time-consuming, new technologies for collecting data for monitoring and evaluation purposes could offer cheap, real-time data and potentially increase the participation and engagement of citizens in the decision-making process. In Egypt, many governmental authorities have developed systems to receive citizens’ complaints. Analyzing the frequency, types and locations of complaints can provide maps that point out bottlenecks and allow the Government to improve services. The private sector has also developed some new technological tools that utilize crowdsourcing and big data techniques to provide useful services. The Egyptian Center for Public Opinion Research (Baseera) has developed a set of mobile applications that use crowdsourcing to provide data related to development issues. The most important applications are Nes2alak and NazahaMap. Nes2alak (“We Ask You”) is a mobile polling application that measures public sentiment on development issues (including gender, environment, reproductive health, and migration) via crowdsourcing and big data. Application subscribers can ask questions or answer questions that other subscribers have asked, and the results of answer to each question are displayed in a graph format. NazahaMap (“Integrity Map”) is a mobile application that allows citizens to report any corruption incidents they experience in their daily life. The application presents the reported corruption cases on a map of Egypt and displays statistics about each type of corruption. 16 Policy-Enabling Environment

3. Review Methodology The process of preparing this report benefited The participatory approach followed in the from the governing framework detailed under preparation and the update of the SDS as well the section above on the policy-enabling as in Egypt’s 2016 voluntary national review environment. Members of the national was maintained in preparing this report. committee and the focal points (sustainable Consultations with governmental entities were development units or working groups) in facilitated through the national committee the different ministries and governmental and focal points as stated above. The highly entities all contributed. The process was led valuable and active contribution of NGOs in by the Ministry of Planning, Monitoring and the review process of the national strategy was Administrative Reform in its capacity as the also instrumental in the drafting of the report. rapporteur of the national committee and the Several NGOs prepared a strategy document main entity responsible for coordinating and that outlines their role in working to achieve monitoring efforts towards the achievement of sustainable development, as well as initiatives the SDS. to implement this proposed strategy. Examples of these numerous initiatives were presented This review presents Egypt’s progress towards and integrated into the report to highlight the achievement of the SDGs. As such, all NGOs’ efforts in this regard. 17 goals are reported on; however, the goals outlined by the 2018 High-Level Political Regarding the engagement of the private Forum (HLPF), namely SDGs 6, 7, 11, 12 and 15, sector, consultation with the United Nations received a more thorough analysis. Global Compact Network Egypt (GCNE) office was carried out towards this aim. The An integral part of the review process is the consultation involved a situation analysis of quantitative analysis of the progress towards activities carried out by the private sector achieving the SDGs. This analysis relies mostly towards the implementation of the SDGs, and on data compiled by the different governmental key case studies and examples were provided stakeholders and the sustainable development by GCNE in support of this report.4 unit residing in the Central Agency for Public Mobilization and Statistics. Subsequently, data The preparation of the report also benefited compiled will be used to report on the different from a large pool of experts who are actively indicators set to monitor progress towards the involved in the national strategy’s review SDGs and the national strategy. Despite the process. Experts provided critical analysis of availability of only 43 percent of indicators, specific areas of sustainable development, quantitative reporting is adopted to highlight detailing challenges, current efforts and the challenges faced in data collection across policy recommendations. These efforts were the different government sectors, and to integrated into this report. identify the missing data needed for effective monitoring. 4 For details of these case studies and examples please refer to ‘Making Global Goals Local Business,’ a publi- cation by GCNE. Egypt's Voluntary National Review 2018 17

4. Bold Reforms in the Face of Challenges 4.1 Egypt’s Economic Reform Program While the world was battling the woes of the of 135 countries in terms of safety, making it global financial crisis, which compromised the safest country in Africa, according to a global macroeconomic conditions, Egypt recent Gallup poll as reported by the BBC. On witnessed the January 2011 uprising. The the economic front, despite the adoption of three-year period after the uprising was bold reform policies such as reducing fuel and characterized by turmoil, political instability electricity subsidies and enacting policies to and security challenges which destabilized improve the investment climate, a consensus the economy. The political instability and started to emerge within the Government and conflicts that subsequently engulfed the among experts that Egypt is in dire need of Middle East and North Africa created waves of a comprehensive economic stabilization and uncertainty and risk and disrupted economic reform program to place it on solid ground to activity, especially investment. Despite these achieve its ambitious development goals. unfavorable conditions, the Egyptian economy continued to register positive, but very modest, In November 2016, Egypt embarked on an economic growth, driven mainly by resilient ambitious and challenging home-grown private consumption and buoyant government economic reform program supported by a expenditure. To keep the economy afloat, three-year Extended Fund Facility (EFF) from the Government continued to boost its the International Monetary Fund worth US$12 expenditure, despite suffering from declining billion. The objectives of the reform program revenue, raising the government deficit to are to address key imbalances in the economy, alarming levels. primarily the external imbalances and the unstainable fiscal deficit, while achieving the After the election of President Abdel- macroeconomic stability that is necessary for Fattah Al-Sisi and the appointment of a new sustainable and inclusive economic growth. Government in 2014, efforts were focused on restoring security and reducing uncertainty Prior to the approval of the program by the and risk, the necessary prerequisites for any IMF’s Board of Directors in November 2016, effective development program. Following the Government of Egypt and the Central Bank the election of President Al-Sisi, however, of Egypt (CBE) undertook very bold economic Egypt experienced a wave of terrorist attacks measures, including a substantial reduction concentrated in the Governorate of North Sinai. in fuel subsidies and the liberalization of the Despite these terrorist attacks, the Government exchange rate regime. of Egypt succeeded in re-establishing security and containing uncertainty and risk. In fact, as On the fiscal side, the Government’s reforms a result of the tremendous efforts to restore include several policies targeting a reduction security, Egypt has been ranked as 16th out in the deficit. The reforms commenced with 18 Bold Reforms in the Face of Challenges

the substitution of a sales tax system with a wages and control wage growth, linking comprehensive value-added tax system, with performance to compensation. a negative list approach towards specific products and services, contrary to the These measures succeeded in reducing the previously implemented sales tax. This was overall budget deficit from almost 13 percent coupled with an increase in the value-added of GDP in 2012/13 to almost 10.9 percent tax rates. More significant was the reduction in 2016/2017 (Figure 2). Notably, this of direct price subsidies for fuel products, significant drop in the overall budget deficit electricity and utilities, which is also a target occurred without negatively affecting public in Egypt’s national sustainable development investment, which has historically been the strategy. In parallel, the Government also main consequence of any attempt to curb reformed the food subsidy system to better the budget deficit. In fact, from 2014, public target beneficiaries and expanded its tax investment increased from 2.1 percent of administration reforms to increase revenues GDP in 2011/12 to an expected 3.1 percent in and reduce tax evasion. The Government also 2016/17. passed a new civil service law to restructure Figure 2: Egypt’s Budget Deficit Source: Ministry of Finance. *Targeted budget deficit On the monetary policy front, the cornerstone and management. The Central Bank of Egypt of the reform program was the introduction (CBE) has, since then, relaxed all restrictions of a flexible exchange rate system which on foreign exchange transactions such as liberalized the foreign exchange market deposits, withdrawals and transfers. This policy and increased foreign exchange availability. was complemented by others to facilitate This occurred following the restoration of the functioning of the foreign exchange confidence in the central bank’s independence market and to contain inflation expectations, Egypt's Voluntary National Review 2018 19

including capping government borrowing from 9 percent in May 2016. Inflation has since the central bank, using more open market declined, reaching 11.4 percent in May 2018. operations and raising the policy interest rates on the domestic currency to curb dollarization. Recent macroeconomic indicators suggest The bank has announced that it will target an that, despite the challenging stabilization inflation band of 13 percent +/- 3 percent by measures adopted, the Egyptian economy is the fourth quarter of 2018, which is consistent recovering from the repeated wave of shocks it with the bank’s primary legal mandate of price has faced since 2011. Inflation and the budget stability. To achieve this target, the central deficit are declining as indicated above. The bank adopted a contractionary monetary external sector has also witnessed a major policy throughout 2016 and 2017, hiking improvement, where the balance of payments interest rates by 8.5 percent. recorded a surplus in 2016/17 of $13.7 billion compared to a deficit of $0.8 billion in 2015/16. The depreciation of the exchange rate by This improvement in the external sector has almost 100 percent since the onset of the positively affected net international reserves, reform, as well as the significant increase in which rose to $44.3 billion, covering nine energy prices as a result of the partial phasing months of imports, in May 2018, up from a low out of energy subsidies, created substantial of $15 billion, covering a mere three months of inflationary pressures, which pushed imports, at the beginning of 2016 (Figure 3). inflation to 33 percent in July 2017, up from Figure 3: Net Official Reserves Source: Central Bank of Egypt. 20 Bold Reforms in the Face of Challenges

Government stabilization efforts and reform This improvement in the macroeconomic initiatives have also reflected positively on stance partially improved unemployment output growth, which is estimated to reach 5.3 figures, which declined from a high of 13.4 percent in 2017/18 compared to 1.8 percent in percent in 2013/14 to 10.6 percent in 2018 2010/11 (Figure 4). (Figure 5). Figure 4: Egypt’s Real GDP Growth Rate (%) Source: Ministry of Planning, Monitoring and Administrative Reform. Figure 5: Unemployment Rates Post Economic Reform (%) Source: CAPMAS Egypt's Voluntary National Review 2018 21

The future prospects of the Egyptian economy materialize, unlocking the country’s numerous are now much more promising, especially investment opportunities, more funds and given the political determination to sustain investments should be directed towards and deepen the reform agenda, coupled with Egypt, adding to its growth and development systemic and proactive efforts to further prospects. improve the security stance through uprooting terrorism from the Sinai Peninsula. Globally, the recent acceleration in economic growth, which is expected to continue in the Regionally, reconstruction efforts are expected near future, should have positive repercussions to resume in Arab countries currently in conflict, on the Egyptian economy through trade, once those situations are stabilized. Given tourism and Suez Canal revenues. Additionally, the proximity and the historical ties between the revival of the Silk Road by China could Egypt and the Arab region, Egypt could play represent an excellent opportunity for Egypt an important role in these efforts, creating to regain its historical prominence as a major lucrative business and job opportunities trading and logistical hub linking the East with for many Egyptian firms and workers. As the West and the North with the South. Egyptian economic reform efforts continue to 4.2 Mega-Projects to Foster Growth In parallel with its ambitious economic reform food gap and increase agricultural exports. program, the Government of Egypt is making Nearly two-thirds of the new arable land will progress in implementing a number of mega- be in Upper Egypt, which will foster economic projects across the country. One common development in this neglected region, creating denominator among these projects is their much-needed jobs and expanding the area’s goal of upgrading the country’s infrastructure, production capability. either through correcting existing deficiencies or through expanding scope and coverage. Another key project with substantial economic, The other common denominator is that the social and environmental implications is the spectrum of these projects goes beyond national project for highways. The project’s the country’s major cities and the densely objective is to link communities that have been populated Nile Valley, with the aim of deprived of economic opportunities because of changing the map of Egypt and creating new poor transportation infrastructure. It also aims sustainable communities that are integrated at easing congestion in major cities. Over the into the country’s economy. These two past four years (2014-2018), 865 km of roads common denominators are directly tied to the have been added to the Egyptian road network overarching principle of leaving no one behind. and around 2,000 km of existing roads have been subject to maintenance or development. The one and a half million feddans5 project The direct and indirect benefits of this project is one of these national projects; it aims are immense; improving the coverage and at increasing the country’s arable land by the quality of the road network in Egypt nearly 18.75 percent while also increasing will reduce the costs of transportation, and food production, in order to close Egypt’s hence the cost of transactions. A reduction in the cost of transactions would encourage 5 One feddan is equivalent to 1.0378 acres. investment, improve the overall business 22 Bold Reforms in the Face of Challenges

climate and spread the benefits of growth and such as limestone, phosphate rocks, zinc, glass development more widely, to reach even the sand, shale rocks, and gold. The project will remote parts of the country. tap into the strategic location of Upper Egypt to build sustainable, affluent new communities An additional national mega-project that is that can utilize this mineral wealth and underway is the Suez Canal Economic Zone, contribute to global supply chains. The project a transformative plan for the Suez Canal will see the building of three seaports and three region. It seeks to create a range of interlinking airports in the area, as well as new connections economic activities that benefit and support with existing road and railway infrastructure. marine transportation activity in this important region of Egypt, and to increase the economic Lastly, the Government of Egypt has made a linkages between Egypt’s mainland and the particularly ambitious mega-project among its Sinai Peninsula. The project includes the top priorities: the new administrative capital, construction and development of several ports located to the east of Cairo. When complete, and the construction of four tunnels that will the new city will host governmental agencies, run under the Suez Canal. The successful foreign embassies, and several international implementation of the project will position universities. The implementation phase started Egypt as a major global logistics hub. in May 2016, and the development will follow sustainability guidelines on issues such as Another project that seeks to foster green space, usage of renewable energy and development away from the Nile Valley is the environmentally friendly public transportation. Golden Triangle project. Located between the The new capital city is only one of a total of 15 cities of Qusayr, Safaga, and Qena in Upper cities that the Government plans to establish Egypt, the so-called Golden Triangle area in the coming years in different geographical covers approximately 9,000 km2. The region locations around Egypt. is extremely rich in terms of mineral resources Egypt's Voluntary National Review 2018 23

5. Progress Towards Goals and Targets This section of the report lays out Egypt’s both references, N/A (not applicable) is progress made towards achieving all 17 SDGs. printed. A set of indicators are provided at the beginning for each goal, based on the availability of data.  Change: Provides a colored representation The indicators are presented in a table that of the change that has occurred to the highlights the following information: value of the indicator:  Indicator: The name of the indicator and its Green positive change; unit of measurement. Red negative change;  SDG target: The number of the target to which the indicator is relevant, i.e. Grey no change; measures progress towards achievement of the target. Yellow positive change but data is not available yet (reference provided  Type: This field is included due to the fact in Annex 2). that not all SDG indicators are available and measurable in Egypt. As such, other The sources and change reference values and indicators, whether from the SDS or other years are provided in the annex at the end of this relevant general indicators, are used to report (Annex 2). The indicator table provides reflect the progress in goals. Thus, this a quick overview of Egypt’s progress towards field takes one of four values; 0 for general the relevant goal, emphasizes the importance indicators (neither SDG nor national of producing measurable indicators for each strategy indicator), 1 for SDG indicators, goal (i.e. fulfilling indicator measurement 2 for national strategy indicators and 3 for requirements) to increase the percentage indicators that are commonly used in the of Tier 1 indicators, and highlights common SDGs and the national strategy. indicators between the national strategy and the SDGs.  Value: The current value of the indicator and the year of measurement. The indicator tables are followed by a description of Egypt’s current efforts and  2030 target: The target provided in the success stories that are contributing to SDGs or the national strategy. In the case achieving the relevant goals. Current efforts of the unavailability of a specified target in are linked to the challenges that Egypt faces regarding each SDG, as well as the change reflected in the indicators. 24 Progress Towards Goals and Targets

SDG 1: No Poverty Table 2: SDG 1 Indicators Indicators SDG Type Value 2030 Change target 1 Target 3 Proportion of 1.1 1.3 2015 0 population below the international poverty line (%) Proportion of 1.1 27.8 2015 Reduce population living by half below the national poverty line (%) Despite previous improvements in the Social Housing Projects proportion of the population living below the international poverty line, the episode To address the living condition dimension of of instability and economic downturn that poverty, Egypt has adopted a social housing characterized the period after the 2011 uprising project for low-income groups that provides has led to a deterioration in the situation. The suitable housing for those with low incomes, percentage of the population falling below with payment conditions that are appropriate the national poverty line rose from 26.3 to their financial resources. The Government percent in 2012/2013 to 27.8 percent in 2015. has completed construction of 190,000 Recognizing this critical social problem, and housing units of 90 m2, each including interior as indicated in Section 2.2, the Government of finishings. These units are offered for sale Egypt has taken serious measures to reduce according to the following conditions: for the impact of poverty on the quality of life of families, annual household income must not the poor through the Takaful and Karama social exceed EGP 42,000; for individuals, annual protection programs. With the prevalence income should not exceed EGP 30,000; of inflation during the 2017-2018 period, a applicants for social housing must be aged presidential decree increased the nominal between 21 to 50 years old and must not have pension amount of these two programs. previously benefited from any government- supported public housing. In order to facilitate The Government of Egypt recognizes that the process for beneficiaries, the Government poverty is not only related to income. In fact, (represented by the Mortgage Finance it is a multidimensional phenomenon related Subsidy and Guarantee Fund) in coordination to deprivations in health, education, and with the Central Bank of Egypt has launched living conditions. In this vein, the Ministry the Mortgage Finance Initiative to finance the of Social Solidarity in collaboration with the purchase of housing for low-income earners. Central Agency for Public Mobilization and Statistics (CAPMAS) and UNICEF Egypt has ENID: The Active Role of Egyptian launched a report entitled “Understanding Civil Society Multidimensional Child Poverty” to better address poverty in all its forms and to design Civil society in Egypt is quite active in suitable policies to eradicate it. attending to social problems. Many NGOs Egypt's Voluntary National Review 2018 25

work on poverty alleviation, and one of the The private sector in Egypt is also active in most important in this field is Egypt Network the domain of poverty alleviation through for Integrated Development (ENID/El Nidaa). its corporate social responsibility activities. ENID was established in April 2012 to alleviate “Ebda3 men Masr” (“Innovation from Egypt”) poverty in Upper Egypt by developing viable is an initiative that evolved as one of the and sustainable employment opportunities main CSR platforms launched by the Bank and providing basic services. ENID works of Alexandria in early 2016. Based on the through four programs; namely micro-, small- concept of “creating shared value”, the Bank and medium-sized enterprises (MSMEs) and of Alexandria has become a partner of citizens entrepreneurship; agricultural and off-farm and the community, blending the creation of development; upgrading basic services; and social value with the growth of the economy. a knowledge and dissemination hub. ENID This is achieved through several collaborations works mainly in the Governorate of Qena, the and partnerships aiming at empowering country’s second-poorest with a poverty rate traditional communities, as well as increasing of 58 percent. Under the four programs, ENID entrepreneurial opportunities, with the ultimate provides various services including medical goal of promoting the preservation of crafts check-ups, literacy classes, vocational training, and heritage. So far, the program has reached awareness-sessions, and support for MSMEs approximately 1,400 craftsmen and artisan in the industrial and agricultural sectors. Most groups across 10 regions. Crafted products of ENID’s activities are directed at women in and goods are displayed on the initiatives Qena. Recently, ENID has started an industrial website for purchase from international and zone in Mana village in the Governorate local vendors. Products are further marketed and selected young female candidates to be in the bank’s annual giveaways and events that trained in handicrafts and employed there. showcase the merchandise. ENID helps the producers to market their work inside and outside Egypt through national and international exhibitions and events. 26 Progress Towards Goals and Targets

SDG 2: Zero Hunger Table 3: SDG 2 Indicators Indicators SDG Type Value 2030 Change target Target Stunting prevalence 2.2.1 2 21.4 2014 10 (% children <5 years of age) Total volume 2.4 0 319 2015 N/A of agricultural production (thousand tons) The Government of Egypt is aware of the Commodity Subsidies necessity to provide appropriate support to vulnerable segments of the population while Egypt has implemented nationwide a new carrying out necessary economic reforms, and subsidy system based on a points system. accordingly initiated several programs and This system includes the replacement of the upgraded other programs to overcome the main supply commodities (oil, sugar, rice) short-term impact of the economic reforms. with foodstuffs or non-food items from up to Hunger is not only a critical social problem; 50 different items. The citizen has the freedom it also has severe long-lasting repercussions to choose the commodities they purchase on cognitive abilities, especially for children. according to their needs. The new subsidy There are several initiatives to effectively system covers 67.8 million people.6 In addition, address this problem on the part of both the the Government has implemented a new bread Government and civil society, which have subsidy system, whereby each citizen can get reflected positively on the indicators related to five loaves per day. Those who need less bread SDG 2 depicted in the above table. can exchange the extra loaves for points that can be used to purchase other goods. School Meals Program The Egyptian Food Bank The Government of Egypt initiated a new school meals program that is implemented The Egyptian Food Bank is an NGO that under the National Strategy of School Meals. provides vulnerable citizens with food on a The program covers all the students in state monthly basis, and on special occasions such preschool and primary education. President as during Ramadan and on religious holidays. Abdel-Fattah Al-Sisi has highlighted the Its monthly feeding program covers 250,000 importance of school meals and assured that households,7 and it has started a new initiative the strategy is a priority for the Government. to collect waste food from hotels and social The meals include a number of items aimed gatherings, to provide healthy meals for poor at meeting the pupils’ nutritional needs. The people. The organization works with the Tahya distribution of school meals is also expected to Masr fund and Misr El-Kheir charity to deliver decrease the dropout rate and increase pupils’ food to the poor all over the country. engagement at school. 6 Ministry of Supply and Internal Trade, December 2017 monthly report. 7 See https://www.egyptianfoodbank.com/ar/month- ly-feeding. Egypt's Voluntary National Review 2018 27

SDG 3: Good Health and Well-Being Table 4: SDG 3 Indicators Indicators SDG Type Value 2030 Change target Target Maternal mortality ratio (per 100,000 3.1 3 33 2016 <70 live births) 3.2 3 27 2014 18 Under-five mortality rate (per 1,000 live 3.2 3 14 2014 8 births) 3.3 1 13,000 2016 N/A 3.4 3 52 2015 N/A Neonatal mortality rate (per 1,000 live 3.6 3 13.2 2016 8 births) Tuberculosis incidence (per 100,000 people) Suicide mortality rate Death rate due to road traffic injuries (per 100,000 population) Egypt’s 2014 constitution affirms the universal population, and the need for better governance. right to healthcare, stipulating that each The progress made in the era of the Millennium citizen has the right to enjoy a healthy life Development Goals with respect to maternal and to receive comprehensive healthcare with and child mortality rates reflects the efforts quality standards. It also specifies that the being exerted in that regard. Additionally, state shall allocate at least 3 percent of the Egypt’s experience in treating hepatitis C Gross National Product (GNP) to the health has become a renowned success story and a sector on an annual basis. In alignment with model for other countries. The participation of this, the SDS prioritizes the development of the different stakeholders in providing health care health sector as an integral aspect to achieving in Egypt especially to low- and middle-income sustainable development, based on the notion citizens is also remarkable. All these efforts, of investing in human capital. One of the main as outlined below in more detail, indicate that aims of the strategy is developing the health Egypt is making huge progress in achieving the insurance system to increase the percentage national and international health goals, while of citizens covered from 58 percent8 to 100 acknowledging the need to compound these percent by 2030. efforts to reach its targets. The Government of Egypt works persistently Significant Decrease in Maternal and on improving the health services provided to Child Mortality Rates its citizens, despite being constrained by the availability of financial resources, a growing The decrease in the maternal mortality ratio from 174 per 100,000 live births in 1992/93 to 8 Ministry of Health database, 2013. 28 Progress Towards Goals and Targets

33 in 2016 reflects a significant improvement CSR Allocated to Provide Health in health outcomes in the country. This Services improvement can be partially attributed to the increase in the percentage of women who The role of the private sector in providing received antenatal health services, and the aid for vulnerable groups in Egypt through percentage of births attended by a health care their corporate social responsibility (CSR) provider. programs has grown over the past decade. Corporate social responsibility activities Similarly, the under-five mortality rate was cover a wide range of groups, including reduced from 81 deaths per thousand live poor people, people with disabilities, people births in 1995 to 27 deaths per thousand in living in informal settlements and deprived 2014, a decrease of 66 percent. The infant areas, orphaned children, and children living mortality rate also dropped from 60 deaths or working on the street. Several hospitals per thousand live births in 1995 to 22 deaths that serve thousands of patients every year per thousand in 2014. depend on both CSR and citizens’ donations to provide the resources for quality health Hepatitis C: A Challenge Turned into a care to vulnerable groups. The Magdi Yacoub Success Story Foundation and the Children’s Cancer Hospital (57357) are notable examples. Egypt formerly had one of the world’s highest prevalence rates of hepatitis C. However, in The Children’s Cancer Hospital (57357) 2015, the country began a battle to eradicate works to prevent cancer through research the disease over the next five years, and since and education, and provides quality then, more than 1 million patients have been healthcare free to children with cancer. The cured, and 15 million people will be surveyed hospital, which offers its services on an and treated every year over a period of three equal opportunity basis, depends on charity years. Egypt will therefore be free of the and donations. virus by the end of 2020. The success of the eradication plan relies on producing the The Magdi Yacoub Foundation has required medication locally, and the price of established an international medical center hepatitis C treatment for each person dropped of excellence offering free state-of-the-art from $900 in 2014 to less than $200 in services for children with heart problems. 20169. In addition, at the end of 2016 the “Ibda Through its medical complex located in Binafsak” (“Start with Yourself”) initiative was Aswan, less-privileged children receive the launched, which aims to detect patients with highest international standards of medical hepatitis C in public organizations. care. 9 World Health Organization (http://www.who.int/ mediacentre/news/releases/2016/world-hepatitis- day/en/). Egypt's Voluntary National Review 2018 29

SDG 4: Quality Education Table 5: SDG 4 Indicators Indicators SDG Type Value 2030 Change target 2 Target Illiteracy rate (%) 2 4.1 0 25.8 2017 710 (10 years and older) 0 Class density 4.1 0 43.7 17/18 30 2.4 17/18 N/A (number of stu- 4.2 98 2017 N/A dents/ class) 4.1 3.2 2017 N/A Quality of primary 4.a.1 education11 (score) Primary education enrolment rate (net %) Internet access in schools12 (score) At the core of the 2030 Agenda lies human in fulfilling the needs of the Egyptian labor capital. As in the case of health, education market and tackling its inefficiencies, as has been receiving increasing attention of evidenced by the high unemployment rates late since having a quality education has so among graduates of higher education. many virtuous spillovers on employment, poverty and demographic transition. Egypt’s Egypt has the largest education system in 2014 constitution states that education is the Middle East and North Africa, with 20 compulsory until the completion of secondary million students in pre-tertiary education. stage or its equivalent. It also specifies that Relatively high enrolment rates for primary and the state shall allocate at least 4 percent of secondary education may reflect the adequacy the Gross National Product (GNP) to school of the education system; yet the high and education, in addition to 2 percent of GNP to increasing (from 42.7 in 2016/2017 to 43.7 in university education, with these percentages 2017/2018) average number of students per to be increased annually to reach global public class raises concerns about the quality of the spending levels. The SDS meanwhile lays out education being provided. High class densities the necessary reforms required to improve have an adverse impact on comprehension and the education system in Egypt. The strategy’s knowledge transfer. Thus, Egypt recognizes education pillar is divided into three levels; that the real challenge is to improve the quality general education (primary and secondary), of the education system. technical education, and higher education (university and postgraduate education). 10 Natural rate of illiteracy. Dedicating a whole part of the education pillar 11 Global Competitiveness Index – component 4.09 to the development of technical education is intended to communicate its importance (Health and primary education pillar). 12 Global Competitiveness Index – component 5.06 (Higher education and training pillar). 30 Progress Towards Goals and Targets

Revamping the School Education schools aim at providing internationally System renowned education certificates, developed in partnership with the international Cambridge In May 2018, the Ministry of Education and Assessment agency. Technical Education launched its strategy for transforming education in Egypt. In alignment The World Bank has accordingly invested with the goals of the SDS, the strategy aims to $500 million to support the education reform provide access to education for all, to create strategy with the aim of increasing access to a relevant and quality educational system quality kindergarten education, improving the in accordance with international standards, quality of learning, and adopting technology. and to develop passionate and enthusiastic The project will expand access to quality pupils and teachers who learn, think and kindergartens for around 500,000 children, innovate. The strategy will restructure the train 500,000 teachers and education officials, teacher payment scheme to better match and provide 1.5 million students and teachers teachers’ qualifications and to improve their with digital learning resources over a period of living conditions. Skill-development training five years (2018-2022). programs will also be provided to teachers to raise their teaching capacities. Education Partnering with the Private Sector to technologies will be deployed to help teachers Improve Technical Education become more effective and make classroom learning more relevant. The system will Under the supervision of the Ministry be transformed gradually from relying on of Education and Technical Education, textbooks to digital learning materials which ElSewedy Development established STA, a will be accessible to students, teachers and technical academy that provides a three-year parents. These new materials will be adopted secondary level program offering customized from the kindergarten stage. technical education for the major electrical industries, in accordance with international In tandem, a new generation of schools, the standards. The training programs reflect a “Nile schools” and the “Egyptian-Japanese dual approach, taken from German technical schools,” are being offered for students at the training, which combines both the learning primary, preparatory and secondary stages. and training tracks, and takes place at schools The Egyptian-Japanese schools will adopt the and within factories. The STA curriculum is Japanese education system and inculcate the competency-based and combines learning values of respect, discipline and cleanliness. with on-the-job training to empower students These schools also aim at improving the with the necessary knowledge, skills and parenting skills of the students’ parents, as attitude. The academy offers scholarships well as ensuring that no private tutoring is and incorporates the use of tablets, online needed. Since the start of the academic year simulations, interactive smart boards and a 2017/2018, 28 Egyptian-Japanese schools digital library as resources for all. have been opened across Egypt. The Nile Egypt's Voluntary National Review 2018 31

SDG 5: Gender Equality Table 6: SDG 5 Indicators Indicators SDG Type Value 2030 Change target 3 Target Proportion of girls 5.3 3 87 2015 50 and women aged 15- 2 49 years who have 3 undergone female 0 genital mutilation/ cutting (%) Proportion of seats 5.5 14.9 2017 35 held by women in 134 2017 60 national parliament 25 2018 30 (%) 27 2017 1817 Global Gender Gap 5.1 Index (rank) Proportion of 5.5 women in ministerial positions (%) Proportion of women 5.a who have bank accounts (%) Egypt has made remarkable strides in all The strategy has four pillars: aspects related to gender equality which have  political empowerment and leadership translated into significant improvements in all  economic empowerment the gender equality indicators as depicted in  social empowerment the above table. These efforts are led by the  protection National Council for Women with the support of active civil society in different areas related The strategy specified a number of targets to gender equality. under each pillar and the indicators that will be used to monitor the progress in the The National Strategy for Women implementation phase. A quantitative target Empowerment was set for each indicator to be achieved by 2030. President Al-Sisi launched the strategy The National Council for Women developed the in March 2017 and all government authorities National Strategy for Women Empowerment are committed to abide by its objectives. to focus on the SDGs and gender issues in the ten pillars of the national strategy. The With the commencement of the strategy’s process of formulating the strategy included implementation, the council established the consultations with governmental authorities, Egypt National Observatory for Women NGOs, the private sector and experts in varying fields. It also conducted several surveys, 17 Indicators and targets are available at the National qualitative studies and secondary analysis to Strategy for Women Empowerment. Targets to be assess and address women’s empowerment in updated by the NCW. a comprehensive way. 32 Progress Towards Goals and Targets

(ENOW),14 to be used in monitoring the Moreover, the Government of Egypt implementation of the strategy on the national is committed to empowering women and local levels. The observatory provides entrepreneurs by providing them with credit decision makers, experts, researchers and the facilities. In this context, the percentage of general public with information that supports microcredit facilities provided to women stood the formation of evidence-based policies and at 44 percent in 2015. In addition, awareness- dialogues, as well as data for the indicators of raising campaigns and training programs have the strategy’s four pillars and the SDGs. been offered to women across Egypt to equip them with the necessary knowledge and skills Additionally, the National Council for Women to develop their own businesses. has advocated for the restructuring of the Equal Opportunity Units that were established Private sector companies and NGOs are also in 2010. As a result, units at the ministries working to empower women. Among these of agriculture and land reclamation, health efforts is the Social Innovation Hub, developed and population, and local development were as part of Microsoft’s “Aspire Woman” reformulated with the aim of enhancing initiative. The project aims at empowering their role in ensuring constitutional equality young women leaders of the future by building between men and women in the workplace their technology, business and soft skills. The (regarding Articles 9 and 11 particularly), as project was launched in 2014 and has since well as addressing any employment practices reached almost 60,000 Egyptian young that are discriminatory against women, people and provided economic opportunities and providing legal awareness programs to for over 2,000 women through freelance work, support the rights of working women and help micro-entrepreneurship and job placement them get the necessary training and promotion opportunities. opportunities. Women’s Economic Empowerment Women’s Political Empowerment The percentage of women who have bank The current Egyptian Cabinet includes, for accounts was 9 percent in 2015, and Egypt the first time, eight female members out of had targeted an increase to 18 percent by 33 total ministers. In addition, the beginning 2030. Accordingly, the Egyptian financial of 2017 marked the appointment of the first- inclusion program was established to increase ever female governor in Egypt’s history. Also the proportion of Egyptians who access in 2017, a woman was appointed for the first financial services from banks, and as a result, time as deputy governor of the Central Bank the percentage of women who have bank of Egypt (CBE). Also notable is the percentage accounts has reached 27 percent, reflecting an of women voting in the 2014 presidential early achievement of the target. election, which stood at 44 percent. 14 See www.enow.gov.eg. Egypt's Voluntary National Review 2018 33

SDG 6: Clean Water and Sanitation Table 7: SDG 6 Indicators Indicators SDG Type Value 2030 Change target 2 Target Ratio of nontraditional water 6.6 2 26 2017 40 resources to total 0 water resources 6.4 30.2 2017 <10 usage (%) 6.3 9297 2016 N/A Percentage of loss in water treatment plants (%) Amount of treated water (mn m3) Water, as one of the key natural resources and the number of monitoring stations is addressed by the environment pillar in the expected to reach 95 by 2030. Additionally, there national strategy, takes a priority in the set has been a substantial decrease in the number of objectives set for 2030. Egypt is reliant on of facilities, mainly sugar and paper production the River Nile for its water resources, with a facilities, that discharge their wastewater into dependency ratio estimated at 97 percent. A the Nile River, from 27 to only 9 facilities. fixed 55.5 billion m3/year passes through the High Aswan Dam-Egypt’s share according to Sustainable use of water resources is also being the 1959 treaty with Sudan. The total water promoted through a number of awareness resources currently available for utilization campaigns conducted by state bodies. In in Egypt are 59.25 billion m3/year, while addition, there are efforts underway to transform water uses are 100 billion m3/year. The gap the irrigation system in Egypt into a drip system. between the current needs and availability These efforts are matched on the private sector of water is filled by sea water desalinization, side, where companies like Sekem, an Egyptian reuse of drainage water, shallow ground organization that has pioneered organic water, and treated wastewater. Given this, the farming, are fostering sustainable irrigation Government of Egypt is exerting major efforts methods and the processing of wastewater. to address the increasing water demands Although organic cultivation already requires of a steadily growing population, estimated up to 40 percent less water than conventional at 96 million in 2017, through the efficient farming methods, Sekem uses sprinkler and management of its water resources. drip irrigation methods, which utilize water resources much more efficiently. Moreover, Monitoring water pollution on the Nile is one 100 percent of the wastewater produced by of the areas where the Government has made Sekem is reused after treatment. In addition, significant achievements. There has been a Sekem contracts farmers from all over Egypt, transformation in the type of monitoring, from and provides them with support on sustainable traditional techniques to the most advanced irrigation systems from the Egyptian Bio- technological solutions. Twenty-one stations Dynamic Association (EBDA). have been installed to monitor both the quality of the Nile River and the quality of direct Provision of safe drinking water to all citizens industrial wastewater released into the river, is another area required for the achievement of SDG 6. The percentage of households 34 Progress Towards Goals and Targets

with access to safe drinking water stands at rural coverage remains, whereby 92.2 percent 98 percent in urban areas and 95 percent of urban households have access to sanitation in rural areas. However, in order to increase services compared to only 47 percent in rural that to 100 percent by 2030, the Government areas. Over a period of four years, however, is expanding drinking water projects; it is 80 sanitation projects have been completed, currently implementing 236 projects, while a covering 414 villages, at a cost of EGP 9 billion. further 155 projects are under development, to The provision of sanitation services is targeted to cover 498 villages. reach 100 percent in all villages by 2030 through the implementation of a sanitation projects Regarding sanitation services, despite the plan in the remaining under-serviced villages increase in the overall percentage of coverage, (2,800 villages, or 58 percent of the total) at an a conspicuous discrepancy between urban and estimated total cost of EGP 200 billion. Box 4: Adverse Impact of the Grand Ethiopian Renaissance Dam (GERD) Egypt is exerting efforts to address the growing water demands of a steadily growing population, estimated at 96 million people for the year 2017. At the current growth rate, the population could exceed the 130 million mark in 2030. Egypt’s territory is 98% desert. About 45-50 million Egyptians live in the Nile Delta, a low-lying region fanning out from Cairo roughly 160 kilometers to the Mediterranean Sea. The rest live in the Nile Valley itself, representing another 1% of the nation’s total land area. The delta and the river together have always been the source of Egypt’s wealth and greatness, yet today they face numerous risks. One imminent challenge is the Grand Ethiopian Renaissance Dam (GERD), a massive dam on the headwaters of the Blue Nile, which supplies a significant portion of Egypt’s water. Despite not being involved in the process of planning or launching the dam, Egypt agreed to cooperate with Ethiopia and Sudan on commissioning an international consultancy firm to conduct technical studies to assess the GERD’s design and its impact on the two downstream countries. These studies have yet to be concluded due to differences regarding the initial report. Further progress on the construction and filling of the GERD must be based on consensus among the three countries on the dam’s design, its impact on Sudan and Egypt, the filling of the reservoir, and its operating rules. Reaching an agreement on this issue is important for Egypt’s efforts to achieve the SDGs, including ensuring the availability and sustainable management of water and sanitation (SDG 6). The first filling of the GERD will seriously affect Egypt’s water availability and decrease the country’s water share per capita, and thus impact various economic activities, particularly in the case of “non-cooperative” filling by Ethiopia. If the filling process is conducted in five years, as planned by Ethiopia, the accumulated water shortage at the High Aswan Dam will increase by 92 billion m3, distributed over a number of years. Water levels in Lake Nasser will rapidly fall to 147m where no release of water is possible. The hydropower production of the High Aswan Dam will also be negatively affected by the GERD’s filling and operation. For example, if the GERD filling process takes five years, the cost associated with the reduction in the hydropower of the Aswan dam ten years after filling will be around $4.16 billion. Hence, Egypt’s ability to ensure access to affordable, reliable and sustainable energy for all (SDG 7) will be hampered. Egypt's Voluntary National Review 2018 35

The expected water shortage in Egypt as a result of uncoordinated GERD filling will also impact Egypt’s agricultural production and affect local farming communities, which again will impact the Egyptian economy as a whole. The macro-level impacts include land left fallow, trade imbalance, an effect on food security (SDG 2), a rise in the budget deficit, and increased unemployment (SDG 8). The assessment of the impact of water shortage on the rural poor at the micro-level varies between Governorates; within Governorates, it varies between land-owners and laborers. The following table summarizes the conclusions of national studies regarding the GERD’s impact on the Egyptian agricultural sector. It indicates that the impact of water shortage at Aswan will be substantial. For example, the loss of 10 billion m3 of water at Aswan from Egypt’s water share (55.5 billion m3) will lead to an annual agricultural production loss of $3.9 billion (26.8 – 22.9 = 3.9 billion), 2,450,000 feddans will be taken out of production, 2.5 million Egyptians will lose their (in some cases part-time) income, and agricultural imports will be increased by 27%. Water availability billion m3/ year Indicator Unit 55.5 50 45 40 35 30 26.8 24.8 22.9 21.3 20.3 17.4 Agricultural $ billion 3,041 2,806 2,594 2,407 2,299 1,977 product value 13,481 12,047 11,030 10,001 8,505 6,975 Agricultural $ per 3.48 4.03 4.46 4.91 5.31 5.96 product value feddan 18.5 17.1 16.0 14.9 14.0 12.7 Cropped area Nile Feddans 3.8 3.52 3.3 3.1 2.9 2.7 irrigation (*1000) % of Imports GDP * Agricultural sector Million all jobs Agricultural sector Million full-time jobs * 2016/2017 * GDP Egypt (2016) $336 billion Ensuring availability and sustainable management of water and sanitation is also essential for making progress on other SDGs. The filling and operation of the GERD absent an agreement that addresses Egypt’s concerns will have a significant impact on almost every sector of the local economy, including health (SDG 3) and education (SDG 4), as well as impede ongoing efforts to make Egyptian cities inclusive, resilient and sustainable (SDG 11). It will also affect the national budget as additional financial resources would then be allocated to address looming developmental challenges arising from the GERD, hence affecting the implementation of Egypt’s national sustainable development strategy. In order to implement the national sustainable development strategy and overcome the challenges posed in this regard by the GERD, Egypt is still committed to concluding the joint impact studies with Ethiopia and Sudan and utilizing the outcome to reach a cooperative filling strategy and operating rules that can balance the interests of the two downstream countries and Ethiopia. This commitment stems from a belief in regional cooperation as a means to achieve the SDGs. Yet the development of one country should not be at the expense of the survival of another, or to the detriment of the water resources and livelihoods on which a nation’s population depends. This cooperation should be based on win-win solutions, realizing mutual gains and respect for the principles of international law. 36 Progress Towards Goals and Targets

SDG 7: Affordable and Clean Energy Table 8: SDG 7 Indicators Indicators SDG Type Value 2030 Change target 3 Target Proportion of 0 population with 7.1 3 99.7 2016 100 access to electricity 0 (%) 7.2 2 2.28 2016 N/A 7.3 17.1 2017 25 Renewable energy share in total energy 7.b.1 24.1 2017 N/A production (%) 12.c.1 35 2017 0 Contribution of energy sector to GDP (%) Contribution of energy investments to total investment (%) Amount spent on oil subsidies (EGP bn) Egypt’s commitment to clean and affordable percent of its power supply is generated from energy is an integral part of the SDS, and the fossil fuels. However, Egypt possesses an Government has accordingly created an energy abundance of land, a sunny climate, and high strategy that is geared towards transforming wind speeds, making it a prime location for the country’s energy sector into one that generating renewable energy. The Government plays an important role in the economy while of Egypt is determined to capitalize on these ensuring a reliable, efficient and eco-friendly resources to achieve its target of diversifying usage of domestic resources. The Integrated its energy mix; it aims to generate 20 percent Energy Strategy to 2035 outlines15 the details of its power from renewable sources by 2022, of how Egypt will produce, utilize and conserve with wind providing 12 percent (7.2 GW), energy through 2035. It provides guidance on hydropower 5.8 percent, and solar 2.2 percent. the best energy mix, shows the technology- Solar energy will generate 3.5 GW by 2027, related and financial results of different including 2.8 GW of photovoltaic and 700 MW “energy futures” based on scenario analysis, of concentrated solar power. The percentage and provides policymakers with evidence- of power generated from renewable sources is based policy analysis to allow them to make targeted to increase further to 37 percent by the most effective decisions. 2035. Egypt, like most countries in the world, at Towards that end, Egypt has acted to provide present relies more heavily on non-renewable investors with the right policy and operational resources than renewables; more than 90 environment necessary to reach these targets. On the policy side, the Government has 15 Collaborative work between the Ministry of implemented substantial reforms of energy Petroleum and Mineral Resources, the Ministry of Electricity and Renewable Energy, the Ministry of Environment, and the Central Energy Efficiency Unit. Egypt's Voluntary National Review 2018 37

subsidies, and a feed-in tariff regulation. substantial opportunity cost on the economy On the operational side, large investments and could be channeled to social sector in the renewable energy sector are being programs in accordance with the Egypt’s 2014 implemented, in cooperation with international constitution. Based on 2013/2014 figures, partners, to promote the production of less energy subsidies far exceed other areas of costly components. social spending, outstripping social security spending by a factor of 50, the health budget Energy Subsidy Reform Program by a factor of five, food subsidies by a factor of three, and the education budget by a factor Egypt’s energy subsidies were among the of two (Figure 6). Moreover, energy subsides highest in the world and had been rising rather were not well-targeted; an estimate for 2014 than falling, in contrast with broader global showed that 36 percent of fuel subsidies went trends. Growing energy subsidies impose a to the richest quintile of the population. Figure 6: Expenses as Percentage of Budget and GDP in 2013/14 Health Education Fuel subsidies Source: Ministry of Petroleum and Mineral Resources. Accordingly, the Government of Egypt pledged designed to affect fuel and electricity tariffs to reform the current policies and embarked for consumers and industries at varying rates. on a bold energy subsidy reform program As a result, the percentage of fuel subsidies that aims at phasing out the current energy has fallen from 20 percent (70 percent of total subsidy system in five years. The first phase government expenses) of the state budget of the program was implemented in July 2014, in 2012/2013 to an estimated 11 percent (50 followed by a second phase in June 2017 and percent of total government expenses) in a third in June 2018. These reform policies are 2017/2018, amounting to approximately EGP 38 Progress Towards Goals and Targets

9.8 billion. Similarly, the Government of Egypt major project will help Egypt take advantage plans to phase out subsidies on electricity of its unparalleled natural resources and move over three years, starting from the 2018/2019 towards its goal of generating clean energy. fiscal year. Electricity subsidies are expected to Projects on the Benban site will be connected decrease by almost 50 percent during the first to the Egyptian high voltage network. The full year of implementation. All these measures project will cost $2.8 billion. will influence production and consumption patterns towards a more sustainable path. The private sector is also benefiting from Egypt’s abundance of solar power; KarmSolar Feed-In Tariff is a solar technology and integration company that delivers innovative solutions to the Egypt’s commitment to achieving its energy agricultural, industrial, tourism and business security target is demonstrated by the sectors. Established in 2011, KarmSolar is Renewable Energy Law which was enacted Egypt’s largest private off-grid solar energy in December 2014. The law provides clarity integrator, with exceptional experience in on the feed-in tariff procedures and enabling developing award-winning, high-capacity legal provisions. These regulations provide solar pumping stations, including the region’s incentives for the development of 4300 largest off-grid Hybrid Pumping and Irrigation MW of renewable energy power (2000 MW System (147 kW). KarmSolar also offers solar-grid connected, 300 MW decentralized MW-scale off-grid solar energy stations and roof-top solar and 2000 MW grid-connected grid connected utility scale installations. wind power). The feed-in tariff is designed to KarmSolar’s goal is to commercialize accelerate investment in renewable energy sustainability, enabling businesses to gain from technologies. As a result, 32 purchase an increase in productivity while benefiting agreements were signed to generate 1465 from, and protecting, the environment. MW of electricity. Additionally, the first solar plant under the feed-in tariff program is now Raising the Efficiency of Electricity operating, with a power generation capacity of Consumption 50 MW. Alongside these efforts to transform Egypt’s Solar Energy in Egypt energy sector, the Government is also committed to improving efficiency in electricity Benban, the world’s largest solar park, is being consumption. In that vein, the Government built in Aswan in the south of Egypt. The solar has replaced 13 million lightbulbs with LED park, named after a Nile River village nearby, bulbs, saving approximately 1.124 billion kWh. will house 32 power plants when complete and Additionally, street lighting is being replaced is set to produce between 1.6 and 2.0 GW of through a project that targets the replacement solar power when completed in mid-2019. The of 3.9 million streetlights, with a total cost of output will be sufficient to power hundreds EGP 2.1 billion, giving a saving of 872 million of thousands of homes and businesses. This kWh of electricity. Egypt's Voluntary National Review 2018 39

SDG 8: Decent Work and Economic Growth Table 9: SDG 8 Indicators Indicators SDG Type Value 2030 Change target 2 Target Annual growth rate 2 of real GDP (%) 8.1 2 5.4 2016/17 12 8.3 2 Q3 Total unemployment 8.5 2 rate (%) 8.5 1 12.5 2016 5 8.5 Unemployment rate 8.9 2 8.9 2016 N/A (male) (%) 8.1 2 23.3 2016 N/A Unemployment rate (female) (%) 8.1 24.2 2016 25 Female labor force 11.3 2016 N/A participation rate 13446 2015 N/A Tourism direct GDP as a proportion of 100 2017/18 30 total GDP (%) Number of Automated Teller Machines (ATMs) (per 100,000 adults) Global Competitiveness Index (rank) Due to a relatively long period of political slower economic growth leading to a related turmoil and security challenges that lasted flight of capital and human resources, and for almost four years after the 2011 uprising, a resulting increase in the unemployment the Egyptian economy has been experiencing rate. However, the Government’s economic a major slowdown, with resulting effects on reform strategy has helped decrease the the main macroeconomic indicators, such as unemployment rate over the last three years, growth and unemployment. Since 2014, the from 12.9 percent in the fourth quarter of 2014 Government of Egypt has been implementing to 11.3 percent in the fourth quarter of 2017.16 effective reform measures in order to With the rise in economic growth following revitalize the economy (see Section 4 of this implementation of major economic reforms report). Consequently, there has been major from 2016 onwards, confidence levels have improvement in country’s fundamentals, which risen, economic activity has stabilized, and have exceeded expectations. the economy’s ability to absorb the annual additions to the labor market has increased. Declining Unemployment Rate Foreign investments projects, the national mega-projects and the micro- and small-credit The Egyptian economy experienced multiple shocks as a result of the uprising in 2011, with 16 See www.capmas.gov.eg. 40 Progress Towards Goals and Targets

programs have also been factors in reducing program (4 percent). This compares with the unemployment rate. However, despite this a real GDP growth rate of 2.2 percent in the progress, unemployment rates among young fiscal year 2012/2013. Economic growth has people and women remain a concern which the continued to rise, registering 5.4 percent in Government is trying to address by supporting the third quarter of 2017/2018, compared to small- and medium-sized enterprises and an expected 4.6 percent for the entire year. financial inclusion. The higher growth is a result of the recovery of some activities, with the lifting of capital Rising Economic Growth Rate controls on foreign exchange, and the quick absorption by the economy of the consecutive Egypt’s GDP reached EGP 3,470 billion during economic measures implemented between the fiscal year 2016/2017, with a real GDP 2016 and 2018. A majority of the economy’s growth rate of 4.2 percent, higher than the sectors have started to recover, registering projected growth rate in the economic reform increased, albeit gradual, growth. Egypt's Voluntary National Review 2018 41

SDG 9: Industry, Innovation and Infrastructure Table 10: SDG 9 Indicators Indicators SDG Type Value 2030 Change target 2 Target Manufacturing value 1 added as a proportion 9.2 2 16.7 2017 18 of GDP (%) 0 9.2 2 12.5 2017 N/A Manufacturing employment as a 9.4 276 2014 N/A proportion of total employment (%) 9.5 1 2018 N/A 9.5 105 2017 60 CO2 emissions per unit of value added (million tons) Research and development expenditure as a proportion of GDP (%) Global Innovation Index (rank) Egypt has made significant progress in involved the construction of 4,000 km of roads infrastructure in many fields, including roads at a cost of EGP 45 billion, equivalent to 20 and bridges, ports, and electricity and renewable percent of the length of the total road network energy, among many others. Drinking water and in Egypt. In addition, 1,347 km of existing roads wastewater projects are also being increased, to were developed and upgraded. cater to the increase in population. Solving the Problem of Electricity New Industrial Zones Shortages Four major industrial zones have been Four years ago, Egypt was facing significant established, with a total of 1,020 units, as well as electricity supply problems, causing repeated five zones which are currently being developed power outages around the country. This caused at a cost of EGP 2.5 billion. In addition, a a decrease in productivity in various sectors comprehensive plan has been developed for the and negatively affected citizens’ quality of Golden Triangle economic area in Upper Egypt, life. From 2014 to 2017, generated electricity with the aim of creating an industrial zone home increased by 50 percent (from 32 GW in 2014 to mining-based industrial projects, logistics to 48 GW in 2017). Recent public opinion polls projects, and environmentally friendly tourism show a high satisfaction rate with electricity projects, with the ultimate goal of creating new services.17 In addition, Siemens was contracted population clusters. to establish three power-generating projects, to produce a total of 14,400 MW. Development of the Road Network The World Bank is also assisting Egypt in in Egypt expanding natural gas pipelines to households both in and outside the capital, to reduce the There has been substantial development of the fiscal burden of supplying highly subsidized country’s road network over the last few years, LPG canisters to underprivileged areas. with the launching of the national project for the rehabilitation of infrastructure in Egypt. This has 17 According to the Egyptian Center for Public Opinion Research (Baseera), www.baseera.com.eg. 42 Progress Towards Goals and Targets

SDG 10: Reduced Inequalities Table 11: SDG 10 Indicators Indicators SDG Type Value 2030 Change target 0 Target 0 Disposable income 10.1 2 3101 2015 N/A per capita ($) Non-oil private sector 10.5 50.1 Apr. 18 N/A PMI (out of 100) 31.8 2015 10 Gini coefficient 10.2.1 Although Egypt had witnessed high economic Government and civil society, developing the growth rates before the uprising in 2011, there authorities concerned with transparency and was widespread inequality in the enjoyment integrity, improving and expanding social of the benefits of economic development, protection systems, reducing gaps among as shown by many indicators, including the different social and economic groups, and poverty rate and the Gini coefficient. achieving balanced geographical distribution of the population.18 Economic inequity is not the only inequity the country faces; there are also gaps between Egypt has expanded the social safety net to men and women, between young people and secure the essential needs of poor people. older generations, between urban and rural However, the real challenge is Egyptians’ communities, between people with disabilities attitudes towards women, young people and and those without, and among different regions people with disabilities, as a number of surveys in Egypt – with Upper Egypt in particular reveal Egyptians do not trust their capabilities. having the highest poverty rates in the country and the lowest levels of access to and quality Local Development Program for of services. Upper Egyptian Governorates Sohag and Qena 2016-2021 The fifth pillar of the SDS seeks to put the constitutional articles on social justice and The Government of Egypt is implementing the equality into action. It envisages Egypt in Local Development Program in Upper Egypt 2030 as characterized by equal economic, for the period 2016-2021. It aims to promote social, and political rights and opportunities sustainable local development and create realizing social inclusion, where citizens’ productive employment opportunities to rights to participation based on efficiency and reduce poverty in the Governorates of Sohag according to law are supported, and social and Qena by improving local infrastructure mobility based on skills is encouraged. Egypt and improving the business environment, and will also provide protection and support to thus fostering the creation of job opportunities marginalized and vulnerable groups. by the private sector. The project’s total cost is estimated at $957 million, with the This pillar includes programs to achieve International Bank for Reconstruction and equal economic, social, and political rights Development providing a loan of $500 million.19 and opportunities, through reviewing and developing laws that support social justice, 18 See Sustainable Development Strategy: Egypt Vision 2030. institutionalizing the partnership between 19 Ministry of Local Development, http://mld.gov.eg. Egypt's Voluntary National Review 2018 43

SDG 11: Sustainable Cities and Communities Table 12: SDG 11 Indicators Indicators SDG Type Value 2030 Change target 0 Target Total population 0 density (population/ 11.1 2 96.6 2018 N/A km2) 11.1 11.1 2 6.8 2017 N/A Inhabited area as 2 percentage of total 11.1 2 96.9 2017 100 area (%) 2 11.1 2 55.9 2017 100 Percentage of 11.1 households connected 11.6 0.7 2017 0 to the public water 11.7 network (%) 37.5 2017 25 Percentage of 60 2017 100 households connected to the 0.85 2015 3 public sanitation network (%) Proportion of slum areas to total urban area (%) - unsafe Proportion of slum areas to total urban area (%) - unplanned Proportion of new cities with waste management systems (%) Per capita green landscapes in cities (m2/capita) Egypt’s high population growth rate and high economic and social conditions of rural-to- population density has caused a deterioration urban migrants are among the adverse results in the quality of urban life and in the of high population density in the cities. environment. Inadequate urban expansion (only 6.8 percent of the total area of the Recognizing the need for integrated and country is inhabited) coupled with unbalanced sustainable urban planning practices, the SDS regional development across Egypt has led is based on the principle of balanced regional to the migration of citizens from rural to development. In particular, the strategy’s urban areas (especially to major cities like urban development pillar matches the targets Cairo and Alexandria) in search of better job of SDG 11, with the aim of increasing inhabited opportunities and better health and education areas, improving the quality of urban life services. Slums, traffic congestion, pollution, and maximizing the utilization of Egypt’s encroachment on agricultural land, and poor strategic location. In tandem, the Ministry of 44 Progress Towards Goals and Targets

Housing, Utilities and Urban Communities has number of cities in Egypt increased from developed the National Urban Development 218 in 2007 to 230 in 2018 (12 new cities Plan 2052 (NUDP) to push the development of in 10 years). Currently, fifteen new cities are several mega-projects such as the Suez Canal being built. The geographical distribution of axis development project and the Golden these cities reflects the Government’s policy Triangle project in Upper Egypt (see SDG 9 direction towards more balanced regional above). Economic, social and environmental development. New cities are designed to development that preserves national heritage be green and energy sustainable, whereby is at the core of the NUDP, as stipulated in per capita green landscape is projected to Articles 29, 78 and 236 of the constitution. increase gradually from 0.85 m2 in 2015 to 3 m2 in 2030. Also, 70 percent of roof tops are Development of New Cities to Reduce to be covered by solar panels, as a source of Urban Population Density clean energy (Box 1: New Cities’ Sustainability Criteria). In 2017, the proportion of new cities New cities are being developed all over Egypt with waste management systems reached 60 to increase the percentage of inhabited areas percent, the target is to raise that percentage and reduce high population densities. The to 100 percent by 2030. Box 5: Sustainable Cities Criteria New Alamein city, located on the Mediterranean coast and spanning an area of 48,000 feddans, will be the catalyst for development in the region. The eco-friendly city will rely on renewable resources, including a desalinization plant and solar energy stations. The city will also incorporate touristic, residential, agricultural, and industrial elements. The New Administrative Capital is to be located 45 kilometers (28 miles) east of Cairo. The city is being established to reduce Cairo’s traffic congestion and promote urban development east of Cairo. Main principles for new cities Pedestrian Cities Green Cities Per capita land exceeds 15m2 40% of roads for pedestrians and bicycles. Sustainable Cities Connected Cities Solar panels for generation of Well established and connected electricity (70% of roof tops) transportation network that provides and waste management systems all means of transportation (cars, taxis, metro, etc.) In that vein, companies that promote the in Egypt; it is also responsible for the largest establishment of green buildings are on the eco-friendly village in the country. As a young rise in Egypt. ECOnsult is an award-winning company (established in 2012) and one that architectural and environmental consultancy is led by a woman, ECOnsult is trailblazing and has achieved the highest number of a new form of consultancy, creating the first certified green buildings of any such company 100-percent recycled building prototype and a Egypt's Voluntary National Review 2018 45

holistic approach to creating a green strategy of slums, both within the city and in the and road map. ECOnsult has contributed to districts around it. Of the 377 residential areas putting Egypt on the right track for achieving around the country that are designated by the sustainable development by promoting a large Government as “unsafe,” 63 (16.7 percent) are number of the SDGs: water-saving, sustainable located in Cairo. cities, energy efficiency, gender empowerment and innovation and entrepreneurship. Thirty-four of these settlements are classified as areas that are dangerous in the first degree, Expansion in Social Housing Programs i.e. residents’ lives are under direct threat due to building collapse, flooding, or, in hilly areas, The provision of accessible and affordable rockfall. These areas are the highest priority of housing is pivotal to Egypt’s rapidly growing the Government, and an ambitious program population, not only to help meet the growing is being implemented to evacuate residents housing gap for low- to middle-income and provide them with apartments in newly citizens, but also to help curb the increasing built housing complexes. It is estimated that number of informal settlements. The social 26,720 units must be constructed to relocate housing program inaugurated in 2014 the inhabitants of these areas. Currently, targeting low-income families aims to provide the Ministry of Housing has completed the 600,000 housing units within four years at a construction of 10,980 units and plans to total cost of EGP 103 billion. The Ministry of finish the construction of 7,440 during 2018; Housing, Utilities and Urban Communities has by the end of the year all unsafe areas (those implemented 265,000 units so far, and there designated as being dangerous in the first are 335,000 units under construction to be degree) will have been evacuated. finished by the end of 2018. The Government of Egypt has also established There is also the Sakan Karim program to the Informal Settlements Development Fund provide housing for poorer citizens as part of (ISDF) to improve the living conditions of the social housing programs by the Ministry slum-dwellers. As of May 2018, 85 areas (22 of Social Solidarity (see section above on the percent of the total settlements) have been policy-enabling environment). developed; 53 of which have been developed by the residents themselves, while 32 have Upgrade of Slum Areas to Secure been developed by the ISDF. Safe Housing for All House complexes like Al-Asmarat in Cairo and With a reported density of 50,259 people Al-Samakeen in Sohag have been constructed per square kilometer, Cairo is among the top through the cooperation of the Government five most dense cities in the world. With the with the Tahya Masr state fund. Several growth in population and the rapid urban-to- NGOs are also working on upgrading informal rural migration, Cairo has also experienced settlements and providing low-income citizens increased growth in the size and population with better standards of living (Box 5). 46 Progress Towards Goals and Targets

Box 6: Al-Asmarat The first two phases of the Al-Asmarat project has been completed and housing units have been provided to relocated families. The housing units have all the associated infrastructure: water, sanitation, connection to the electricity grid, and paved roads. The third phase is scheduled to be completed by the end of 2018. Funding Al-Asmarat 1 Al-Asmarat 2 Al-Asmarat 3 source ISDF Tahya Masr Fund Tahya Masr Fund Surface area (feddans) 65 61 62 Number of housing units 6258 4722 7440 Facilities • Daycare center and • Two daycare centers • Industrial high school Cost (million elementary school and two elementary • Social services EGP) schools • Three health service building units • 110 commercial stores • Children’s playground • Post office • 140 commercial stores • Mosque • Two football pitches • Police and fire stations • Two multi-purpose playgrounds 850 650 1,000 (estimate) Expansion and Upgrade of Old buses are gradually being replaced by Transportation Network new ones, providing citizens with reliable and quality means of transportation. In an Cairo’s underground metro is in the process attempt to attract more citizens to the public of expanding; a third line is now operational, transportation system and thus reduce Cairo’s and the fourth line is under construction, to traffic congestion, the Egyptian state-run bus be completed in 2019. These expansions company recently provided new buses in co- contribute in reducing traffic congestion on the operation with the privately-run bus company roads, and also provide a faster and cheaper Mouslat Masr. The new buses are air- transportation alternative for low- and middle- conditioned, equipped with Wi-Fi services, and income residents of the capital. Transportation have an electronic ticketing system. Start-ups to the New Administrative Capital, currently are also entering the transportation market, an under construction, will be via electric train, area that was previously dominated by public to increase the connectedness of the city companies, offering innovative solutions to and to ensure an eco-friendly transportation congestion problems through bus-sharing environment. software applications. These applications serve a wide user group of students and corporate Egypt's Voluntary National Review 2018 47