Embassy of the United States

Overview

Economic growth, development, and prosperity for all Egyptians are critical components of Egypt’s successful democratic transition.  The United States economic transition assistance reflects the American people’s support for the Egyptian people, as well as recognition of the stake we have in Egypt’s success.  Our economic assistance priorities respond directly to Egyptian popular demands for greater opportunity and socio-economic equality, especially for youth.

How We Are Supporting the Transition

In February 2011, immediately following Egypt’s revolution, the United States provided $100 million in economic assistance to support the Egyptian people during the transition.  These funds are aimed at easing the economic difficulties experienced by Egyptians and to bolster the Egyptian private sector as an engine of job creation. 

This economic support builds upon the nearly $30 billion we have invested in Egypt over three decades to raise health standards and education levels, expand access to clean water, build strong communication and transportation networks, strengthen civil society, and modernize Egypt’s agriculture sector.   

Our Goals for Egypt’s Economic Growth

Our goal is to work with the Egyptian people to develop a globally competitive and innovative economy that offers meaningful opportunities for all citizens.  Accordingly, our assistance supports initiatives that can help with short-term economic recovery and can generate private sector jobs.  Our transition assistance supports small and medium-sized enterprises, business lending, entrepreneurship, and job-skills training.  We are also working to create short-term employment opportunities through projects to improve Egypt’s local infrastructure. 

In addition to these transition projects, in May 2011, President Obama announced several major initiatives to support Egypt’s democratic transition.  We are currently working with Congress and the Government of Egypt to realize these initiatives.  They include:     

• Relieving up to $1 billion of Egypt’s debt to the United States and dedicating this money to projects that offer new educational and economic opportunities to Egyptians;
• Making available up to $1 billion in loans and/or guarantees for infrastructure projects, potentially in the water and transportation sectors;
• Lending up to $700 million to small and medium-sized enterprises to support their growth;
• Establishing an Egyptian-American Enterprise Fund that will invest in promising small and medium-sized businesses and help those businesses to expand; and
• Building a Middle East Trade and Investment Partnership to increase trade within the Middle East and North Africa, as well as with the United States and Europe.  

Approach to Economic Assistance

U.S. economic assistance is directed to respected Egyptian organizations as well as experienced U.S. and international organizations that work closely with the Egyptian government and with the private sector.  We engage in regular dialogue about assistance with the Egyptian government and the Egyptian people to help identify priority areas for support.  All U.S. foreign assistance is subject to rigorous internal reviews, as well as oversight by the U.S. Congress, to ensure that funds are being spent for their intended purpose.

Project Areas

Economic transition assistance funds support a variety of new projects across Egypt, in order to build an inclusive and prosperous economy:

• Providing Jobs:  Our assistance is helping Egypt create short-term employment through new projects that extend clean water and wastewater services to poor communities.  Other programs provide young Egyptians with training and internships that place them in jobs in key economic sectors.
• Supporting Entrepreneurs:  U.S. assistance supports Egyptians who are interested in becoming entrepreneurs through training programs and mentorship opportunities, and by linking start-up companies to each other and with financing mechanisms.  Our assistance also helps Egyptians who are working to improve the legal and policy environment for entrepreneurs, making it easier to start businesses and to find a loan.  These projects provide start-up loans to 7,500 young Egyptians, many of whom live in Egypt's poorest governorates.
• Supporting Small and Medium-Sized Enterprises (SMEs):  U.S. assistance aims to make it easier for Egyptian banks to lend capital to small businesses, as well as to entrepreneurs. These small business loans also help create job opportunities for female heads of households and allow women to better provide for their families.
• Improving the Standards for Egypt’s Workers:  Egypt’s workers have made clear their desire for better working conditions, and Egypt wants to upgrade its labor standards to improve its competitiveness in the global economy.  We are partnering with Egyptian and international experts to improve labor inspection and provide assistance for factories trying to upgrade labor standards.  We are also working to help the Ministry of Labor enforce labor laws.
• Helping Egypt’s Neediest:  U.S. assistance contributes to alleviating poverty and improving childhood health and nutrition through targeted school feeding programs.   
• Developing Agriculture:  Agriculture is an important industry in Egypt, particularly in Upper Egypt. Our aid supports development in the fresh produce and olive industries, which could become significant Egyptian exports.  Projects in this area will create jobs by offering vocational training to unemployed youth and graduates of technical agricultural schools.
• Promoting Female Business Owners:  Women-owned businesses have significant growth potential and job creation rates but often lack access to capital, technical training, and specialized expertise.  We are helping women in rural Upper Egypt develop businesses that increase income-generating opportunities for as many as 1,500 Egyptians.
• Encouraging Science and Innovation: We are investing in recent graduates of engineering programs at accredited public universities so they will develop the skills necessary to successfully compete for design and construction supervision projects throughout the region.

Examples of Our Current Projects

Our assistance is affecting the lives of Egyptians from all parts of the country and from different walks of life.  For example, projects funded by the United States are:

• Training hundreds of Egyptian youth to help them jump-start their careers as entrepreneurs.
• Assisting Egyptians in the Sinai gain new vocational and business skills, as well as connecting them to potential employers. 
• Facilitating employment opportunities by expanding and helping to develop the agricultural products industry in Upper Egypt.
• Providing sustainable business opportunities to small farmers in the fresh produce sector and related industries in Al Minya and Beheira.
• Helping new college graduates compete in the Egyptian labor market by providing instruction in interpersonal, entrepreneurial, English language, computer, marketing, and management skills.
• Increasing sustainable employment opportunities in the production and marketing of high-value products from Upper Egypt, focusing on the high-unemployment governorates of Luxor and Qena.
• Using technology to link employers and job-seekers in disadvantaged areas of Egypt through technology, with a particular focus on youth employment.
• Helping 15,000 women acquire new skills that meet current labor market needs.
• Assisting in the creation of approximately 1,000 new, women-owned enterprises and 5,000 new jobs for women.
• Providing technical assistance to Egyptian banks and other lending institutions so that underserved groups can more easily access capital and create jobs.

For additional information, please refer to the United States Agency for International Development (Egypt.usaid.gov); the Middle East Partnership Initiative (mepi.state.gov); and the Overseas Private Investment Corporation (http://www.opic.gov/).

Click here to search a database of all U.S. spending in Egypt's Economy.