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Egypt
>> Regional Overview >> Egypt Overview Program Data Sheet
263-016
USAID MISSION: Egypt
PROGRAM TITLE: Creating Jobs through Trade and Investment (Pillar: Economic Growth, Agriculture, and Trade)
STRATEGIC OBJECTIVE AND NUMBER: Environment for Trade and Investment Strengthened, 263-016
STATUS: Continuing
PLANNED FY 2002 OBLIGATION AND FUNDING SOURCE: $510,800,000 ESF
UNOBLIGATED PRIOR YEAR FUNDS AND FUNDING SOURCE: $90,795,000 ESF
PROPOSED FY 2003 OBLIGATION AND FUNDING SOURCE: $501,000,000 ESF
INITIAL OBLIGATION: FY 2000 ESTIMATED COMPLETION DATE: FY 2009Summary: Creating jobs through trade and investment includes the following components—
- trade and investment financing, cash transfers, and related technical assistance;
- trade, business support, and agriculture;
- financial reform and privatization;
- technology; and
- design, evaluation, and training.
Inputs, Outputs, and Activities: FY 2002 Program: USAID will continue financing for trade and investment transactions through the Commodity Import Program with no substantive program changes. USAID also will continue to support Government of Egypt (GOE) policy reform through the cash transfer program and the Development Support Program II (DSP II). Specific reforms include privatization of public enterprises, power and telecommunication facilities, public banks, and insurance companies; passage of a new labor law; formulation and implementation of trade policy reforms; decrease of tariff rates and fees on imports; strengthening patent and trademark regulations; implementation of trade-related intellectual property rights; World Trade Organization (WTO) compliance measures; and the implementation of health-sector policies to improve the efficiency of health service delivery. Funds will also be programmed for technical assistance to support the annual $200 million cash transfer program in areas such as trade capacity building and reform; intellectual property rights enforcement; and legal, regulatory, and policy framework reform. Support for small and microenterprise development will continue.
USAID will provide technical assistance, training, and other support to Egyptian businesses and business associations to increase Egyptian exports in high-potential sectors such as fresh produce, processed foods, livestock, furniture, textiles, leather, and software. A new activity in support of agricultural policy, business, and technical changes to support agricultural trade and increase rural incomes will start in FY 2002. This activity will provide technical assistance and training to implement a new policy agenda in agriculture and to identify strategic investments in agricultural trade, which will increase income and jobs in rural areas. USAID will continue technical assistance and training to the GOE privatization program. This activity will also provide assistance in planning and initial implementation of actions related to state-owned banks and insurance companies, supporting an expanded impact on financial-sector reform. In capital markets development, USAID funds will help develop new financial instruments such as securitized mortgages, and strengthen human resource and organizational capabilities of partner institutions to issue, trade, and regulate these instruments in both debt and equity markets.
Finally, USAID will continue to support the development of information technology. USAID’s activities will facilitate changes in the legal and regulatory framework, in human capacity development, and in technology transfer. USAID will also continue to fund the U.S.-Egypt Science and Technology Agreement, which seeks to promote cooperative scientific research with private-sector applications in mutually agreed upon areas. Priority areas are biotechnology, measurement standards, environmental technologies, manufacturing technologies, and information technology.
Planned FY 2003 Program: The Commodity Import Program will continue with no substantive program changes. This will support U.S. exports, Egyptian investment, greater productivity for Egyptian firms, and more jobs in the Egyptian economy. The policy reform/cash transfer program will also continue, with the FY 2003 reform agenda dependent both on reforms implemented during FY 2002 and on decisions made about new reforms necessary for continued growth and development. Other policy reforms may be included, including those for the health and environment sectors. Funds will be programmed for technical assistance to support the policy reform program. The small-and microenterprise development program will continue, with greater focus on expanding services through increased use of banks as intermediaries and through greater provision of support services.
USAID also will support the adoption of better technology for production and better market information, and will strengthen Egyptian firms’ capacity to market goods abroad. A new five-year effort will help create the next generation of policies and improvements in the business environment. Technical assistance and training will improve the competitive environment through changes in areas such as business law, corporate governance, civil service reform, and competition policies. Another new activity will focus on financial regulatory reform and capacity building in banking, insurance and non-banking financial institutions, building on the experience of earlier efforts. Finally, USAID will continue its support for the development of information technology and for the U.S.-Egypt Science and Technology Agreement.
Performance and Results: Economic growth slowed significantly in the past year as a result of tight credit conditions. The unfavorable macroeconomic conditions turned considerably worse following the September 11th attacks on the United States, which had a severe impact on Egypt’s tourism and trade. The government’s revenue position and Egypt’s balance of payments are under considerable pressure as a result. USAID programs, such as the Commodity Import Program and the cash transfer program, provide invaluable support during this period, helping both the GOE and the private sector cope with difficult economic conditions. USAID provides the expertise and tools needed to continue economic reforms. These reforms will enable Egypt to emerge from the crisis with a stronger economy that is poised to respond to shocks as well as opportunities. For example, recent success with the Central Bank in creating new financial instruments and the legal framework for the development of a secondary market will provide the bond markets with a new resilience. USAID support and leverage of WTO compliant laws and regulations on intellectual property, telecommunications, and information technology not only create a level playing field for international businesses, but also provide Egypt new opportunities for increased investment.
Principal Contractors, Grantees, or Agencies: Over 50 grantees and contractors provide the technical assistance, training, and expertise needed for successful implementation of USAID’s far-reaching economic growth program. USAID has built local capacity in recent years so that a growing part of the program is implemented by local firms and NGOs. U.S.-based prime contractors and grantees include the following: Abt Associates; ACDI/VOCA; Barents; Booz Allen; Carana Corporation; CARE; Chemonics; Development Alternatives, Inc.; International Executive Service Corps; International Resources Groups; Michigan State University; Nathan Associates; National Cooperative Business Association/Cooperative League of the USA; PricewaterhouseCoopers; and RONCO. U.S.-based subgrantees include Cargill; Management Systems International; Purdue University; Training Resources Group; and Winrock, International.
US Financing in Thousands of Dollars
263-016 Environment for Trade and Investment Strengthened ESF Through September 30, 2000 Obligations 1,456,181 Expenditures 458,082 Unliquidated 998,099 Fiscal Year 2001 Obligations 347,123 Expenditures 504,803 Through September 30, 2001 Obligations 1,803,304 Expenditures 962,885 Unliquidated 840,419 Prior Year Unobligated Funds Obligations 90,795 Planned Fiscal Year 2002 NOA Obligations 510,800 Total Planned Fiscal Year 2002 Obligations 601,595 Proposed Fiscal Year 2003 NOA Obligations 501,000 Future Obligations 2,641,840 Est. Total Cost 5,547,739
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Last Updated on: May 29, 2002 |
