OECD Development Pathways Production Transformation Policy Review of Egypt Embracing Change, Achieving Prosperity

Description

Egypt is one of Africa's industrial heavyweights. Transforming the country's economy to sustain job-rich and sustainable growth are pivotal steps in its march towards prosperity. Today's search for new development models, accelerated by the unfolding of the COVID-19 pandemic, calls for shifting up a gear in raising Egypt's industrial capabilities to compete in an industry 4.0 and agro 4.0 landscape. The Production Transformation Policy Review (PTPR) of Egypt uses a forward-looking framework to assess the country's readiness to embrace change. This includes an analysis of the game-changing potential of the African Continental Free Trade Area (AfCFTA) and perspectives on agro-food and electronics (i.e. what in Egypt is referred to as part of the engineering sector), as well as identifying priorities for future reforms. This review is the result of government-business dialogue, and benefited from peer learning from Italy and Malaysia. It also resulted from international and multi-stakeholder knowledge sharing through a dedicated Peer Learning Group (PLG) and the OECD Initiative for Policy Dialogue on Global Value Chains, Production Transformation and Development. Foreword Acknowledgements Editorial Table of contents Country profile Abbreviations and acronyms Executive summary Assessment and recommendations Egypt is among Africa’s heavyweights The country can leverage important assets to achieve prosperity A continental agenda prioritising trade integration and industrialisation for Africa A government committed to implementing reforms A private sector ready to leverage on new competitiveness drivers Tackling structural challenges is paramount for future progress Upgrading infrastructure Changing economic specialisation and innovating Benefitting more from trade Egypt needs to continue advancing its reforms agenda to realise its vision for a resilient, sustainable and inclusive future Investing in making AfCFTA a real development driver Engaging the private sector in innovation Getting policy making ready for the future 1 Egypt’s path to prosperity Introduction A growing industrial hub Looking for new markets, developing new partnerships Scaling-up productive investments and innovation is needed to unlock opportunities for all Conclusions References Notes 2 Policies and partnerships to achieve Egypt’s potential Introduction Egypt counts with a vision to transform its economy The country has embraced a process of institutional modernisation and red-tape simplification Egypt identifies Industry 4.0 as a game changer for the future Harnessing the potential of industrial parks in Egypt Updating the policy mix to better promote economic transformation Conclusions References 3 Transforming industries: Perspectives from agro-food and electronics and electrical in Egypt Introduction Focus on agro-food in Egypt Agro-food exports and FDI to Egypt have been on the rise Policies for agro-food in Egypt focus on exports, infrastructure and land management A roadmap for unleashing agro-food potential Enhancing partnerships for Agro-food 4.0 to make it sustainable, inclusive and innovative Updating branding, signalling quality Don’t leave MSMEs behind Focus on E&E in Egypt A growing industry Targeted policies, talents and market potential have been behind the emergence of E&E in Egypt E&E has potential to continue growing Conclusion References Note 4 AfCFTA could be Egypt’s next game changer Introduction AfCFTA holds promise to unleash the continent’s industrial potential Egypt’s path to prosperity is linked to Africa’s integration and transformation Making the most of AfCFTA requires targeted national strategies Conclusions References