Demographic shifts, globalisation, the digital revolution, climate change and the green transition offer both opportunities and challenges to most countries. This chapter explores how these trends are affecting women in Egypt and asks what steps can be taken to enable women to benefit fully from any opportunities raised, while avoiding placing any further pressures on them.
Women’s Economic Empowerment in Egypt
Abstract
In Egypt, as in many other countries, several megatrends are reshaping the labour market, from demographic change and evolving patterns of global economic integration, to the adoption of digital technology and dealing with climate change. Gender gaps in education, employment and economic opportunities may limit women’s ability to fully benefit from any emerging opportunities these trends offer, while increasing their vulnerability to certain challenges.
Egypt is yet to realise its “demographic dividend”. Its “youth boom” – driven by high fertility rates, improving child health and reduced child mortality – combined with a lack of access to early childhood education and care, are limiting women’s ability to participate fully in the labour market.
While greater access to foreign markets and strengthening the links with global value chains may improve economic outcomes for women, the country’s trade openness remains relatively modest. Achieving potential wellbeing gains from trade integration for women as workers, consumers and employers will require removing the barriers that hold women back from accessing international markets and dealing with adjustment costs.
The spread of digital technologies provides new avenues for the empowerment of women and girls, and can contribute to gender equality in areas such as entrepreneurship. Allowing this to occur will require improving women’s access to digital technologies – especially in rural areas – as well as strengthening women’s opportunities to develop digital skills, and implementing mechanisms and safeguards to avoid gender discrimination in AI systems.
Climate change poses important economic and health threats to Egypt’s population, especially to the vulnerable groups of society, including many women. Green growth and sustainable development are high on Egypt’s political agenda and Egypt’s Vision 2030 promotes an integrated approach to sustainable development. Targeted training and employment support can help workers, and women in particular, transition to green-driven occupations.
Making the most of these megatrends for women will mean promoting women’s economic empowerment and investing in family planning and childcare policies, supporting women’s participation in sectors linked to global value chains, and giving women the skills to embrace digital technologies and to participate fully in the green transition.
Several megatrends are reshaping labour markets in Egypt and around the world, changing the nature of work. Key drivers are demographic trends, shifts in global value chains, the adoption of new technologies, and the transition to a more sustainable economy in the face of climate change. These trends in demography, globalisation, the digital transformation, and the green transition shape the quantity and quality of available jobs, as well as how, where and by whom they will be carried out.
Persistent gender inequalities in many domains of society mean that the challenges and opportunities raised by these megatrends will affect men and women in Egypt differently. In particular, gender gaps in access to employment and economic opportunities may reduce women’s ability to reap any benefits. For example, although the adoption of digital technologies may improve employment opportunities for everyone, the under-representation of women in science, technology, engineering, and mathematics (STEM) professions (Chapter 7) means that men are better equipped to seize them. Lower-skilled workers are typically more exposed to declining employment prospects due to automation and technology adoption, including artificial intelligence (OECD, 2023[1]; Milanez, 2023[2]).
This chapter discusses the impacts of these megatrends on the labour market in Egypt, focusing especially on the country’s women. The chapter draws on quantitative and qualitative evidence as well as examples of international good practice. It describes the key challenges that Egypt will face and proposes policy responses to ensure that women are able to take advantage of demographic change (Section 2.2); reap the benefits of economic integration in global markets and value chains (Section 2.3); seize the opportunities brought about by digitalisation (Section 2.4); and act as agents of change to mitigate climate risks while also contributing to the green transition (Section 2.5). The final section (2.6) offers policy considerations for allowing these megatrends to become opportunities for women as employees, entrepreneurs and citizens, while alleviating any risks raised.
Falling fertility and mortality rates can trigger an economic boost known as the “demographic dividend” (Gribble and Bremner, 2012[3]). This occurs when the share of the young, dependent population becomes gradually smaller relative to the working-age population, allowing countries to move towards a path of greater labour force participation, lower care burdens and stronger economic growth – provided that the right social and economic policies are in place and future-oriented investments are made. However, Egypt is not yet in a position to reap this dividend. Almost a third of Egypt’s population was estimated to be less than 15 years old in 2024, while the population aged 65 and over only constituted 5% of the population (United Nations, 2024[4]) (Box 1.1). Combined with a lack of access to early childhood education and care, this young population has entailed a high burden of care which has dampened women’s labour market participation. In addition, high youth unemployment in Egypt – 50.5% among young women (age 15-29) and 12.9% among young men (age 15-29) in 2023, limits the contribution of young people of working age to the economy (ILO, 2024[5]).
The fertility rate is falling, but still has a way to go. Supported by effective policies in family planning and reproductive health, the total fertility rate (TFR) – conventionally expressed as the number of children per women of reproductive age – declined significantly in Egypt over the past three decades, down to 3.2 births per women in 2008, from 4.5 in 1990. However, it started to rise again at the turn of the decade, reaching 3.5 births per women in 2015, before dropping again to 2.7 children per woman in 2024 (United Nations, 2024[4]). Fertility was highest among younger women in the 20-24 age group and associated with a decline of the median age at first marriage (El-Saharty et al., 2022[6]). The 2023 update of Egypt’s National Population Strategy 2015-2030 set a target of lowering the fertility rate to 2.1 children per woman by 2030, from the estimated rate of 2.8 in 2023 (National Population Council, 2023[7]).
To tackle the immediate challenge of high fertility rates, Egypt’s National Population Strategy (ENPS 2015–2030) prioritises reversing the decline in public resources for family planning, addressing rising poverty rates, and reducing geographic disparities in population and development indicators. Recognising the need for a multisectoral approach, the ENPS identifies the National Population Council (NPC) as the main agency responsible for ensuring collaboration across different ministries. The need to tackle population growth was reaffirmed in the Egypt Population Implementation Plan 2015‑2020, and in 2022 the government launched the National Family Development Project aimed at curbing population growth and improving population well-being through women’s economic empowerment, ensuring free of charge access to birth control, promoting awareness and offering monetary incentives (UNICEF, 2022[8]). The project was implemented between 2021-2023 and targeted women of childbearing age across all governorates. It also included training for medical staff and services in reproductive health, a unified electronic system that monitors and assesses all services to Egyptian families, and an awareness-raising campaign (State Information Service, 2023[9]). According to the Egyptian Family Health Survey, 66% of married women of childbearing age (15-49) made use of contraception in 2021, which represents an increase of about 8 percentage points from the 2014 level (58%) (CAPMAS, 2023[10]). There is still an almost 10 percentage point gap to reach the 75% target by 2030, however. Even though the rate of population growth has slowed in the last decade, the total population has increased steadily and is estimated at 114 million people in 2024, up from 95 million in 2014 (United Nations, 2022[11])
To reach its full economic potential Egypt should continue its commitment and efforts to reap the benefits of the demographic dividend. It needs to promote women’s economic empowerment by investing more in voluntary family planning policies, including reproductive health care. Egypt should also expand access to formal care services, especially for young children, and provide incentives for a more equal sharing of work and care responsibilities between men and women, for example through access to parental leave (see also Chapters 3 and 6). These crucial efforts must be combined with investments in health, education and skills policies; reducing school drop-outs and increasing the enrolment of girls; and leveraging social protection programmes, such as the Takaful and Karama cash transfer programme, to promote girls’ education and women’s access to health (El-Saharty et al., 2022[6]) (Chapter 5). Broader policies to promote gender equality are also needed, such as support for women’s financial inclusion and entrepreneurship (Gribble and Bremner, 2012[3]) (Chapter 8). These policies need to be accompanied by wide-ranging policies to support job creation, labour productivity, job quality and investment in human capital and skills (Chapter 7). Ensuring stable macroeconomic policies and broadening economic opportunities in rural areas will be key to sustain these policies over the long run (El-Saharty et al., 2022[6]).
While many countries around the world have seen a shift towards longer life expectancies, lower child mortality, and, eventually, lower fertility rates, in connection with social and economic development (Myrskylä, Kohler and Billari, 2009[12]; Roser, 2023[13]), Egypt’s demographic picture is markedly different. On average in OECD countries in 1980 there were 20 people aged 65 and over for every 100 people of working age (20-64), but by 2022 the share of older people had increased to 30 (Figure 1.1). By 2050 on average in the OECD, there will be more than 50 people aged 65 and above for every 100 people of working age, while the ratio could even exceed 75 in some countries – such as Italy, Japan, and Spain. For many OECD countries, their ageing populations raise challenges such as labour shortages, and threaten the fiscal sustainability of social security systems.
The demographic situation in Egypt is markedly different. In 1980, there were about 10 people aged 65 and over for every 100 people of working age, declining to 9 people by 2022 (Figure 1.1). The dependency ratio is expected to reach 17 by 2050. Egypt’s population is also expected to be younger than other country in the MENA region – where the dependency ratio is projected to reach 22 on average by 2050. At the same time, a recent analysis of past and future global fertility trends from 1950-2100 finds that the global population is converging towards low fertility levels, with potential negative impacts on labour supply and economic growth. Almost all countries around the world, including Egypt, are projected to have a TFR below the replacement rate in 2100, resulting in a shrinking global population (Bhattacharjee et al., 2024[14]).
Old-age dependency ratio, number of people of retirement age (65+) per 100 people of working-age (20-64), in 1980, 2022 and 2050
Source: United Nations (2022[11]), United Nations, World Population Prospects. 2022, https://population.un.org/wpp/publications?year=previous.
Given the country’s strategic geographic location, increasing international trade holds promise for economic development and employment, including for female workers. There is scope to expand and deepen Egypt’s economic integration in global markets and value chains and to shift the focus away from low value-added activities (OECD, 2024[15]). Greater trade integration can translate into higher productivity, greater competition, lower prices, higher incomes and improved welfare. Countries with lower levels of globalisation may benefit more from economic integration than countries that are already highly globalised, even if benefits within countries may not be equally shared and can result in rising inequality (Lang and Tavares, 2018[16]; Dorn, Fuest and Potrafke, 2018[17]). Gains are stronger when participation in global trade is accompanied by skills development (OECD, 2017[18]).
Trade can substantially improve economic outcomes for women by increasing employment and wages, creating better jobs and lowering costs, through private investment fuelling the labour market (Korinek, Moïsé and Tange, 2021[19]). Trade can pave the way for a transition to more jobs for women in the formal economy, offering better working conditions and access to various benefits. Female workers are less likely to be informally employed if they work in sectors that trade more or are more integrated into global value chains, which means more opportunities for job security, as well as for training and skills development. Across the globe, the probability of female workers being hired informally is 13% in sectors with high levels of exports, compared to 20% in sectors with low levels of exports (World Bank and WTO, 2020[20]).
Growing exposure to international trade can also result in significant incentives for countries to expand women’s legal rights and their access to crucial resources such as education and technology. International experience also shows that improved women’s rights have the potential to promote more trade. There is, in other words, a virtuous circle between increased trade and gender equality (World Bank and WTO, 2020[20]).
However, Egypt’s trade openness and integration in global value chains are low. In 2022, Egypt’s trade openness – defined as the sum of exports and imports of goods and services as a share of gross domestic product – equalled a mere 31%, well below values observed in other countries of the MENA region and the OECD average (Figure 1.2). This low score may have been temporarily exaggerated by the COVID-19 pandemic, which disrupted trade, especially in some sectors in which Egypt is highly specialised and which employ a large share of women, such as manufactured apparel goods and the provision of touristic services. While many countries have seen the depth of economic integration stabilise since the global financial crisis in 2008/2009 (Jaax, Miroudot and van Lieshout, 2023[21]), some evidence suggests that Egypt has seen a decrease (OECD, 2023[22]). The foreign value-added content of gross exports, a standard indicator to measure participation in global value chains, is estimated to have fallen from 13% to 8% between 2008 and 2020, significantly below the OECD average of 27% (OECD, 2023[22]). This suggests there are potentially substantial economic gains to be made by strengthening the links with existing markets and exploring new ones (OECD et al., 2021[23]), as well as by pursuing further improvements in Egypt’s regulatory environment and the business climate (OECD, 2024[15]).
Import tariffs are high in Egypt, with an average trade-weighted tariff of 10.5% in 2019. Tariff rates are particularly high for agricultural products, or products that compete with Egyptian manufactured products such as textiles, where the tariff rate is 40-60% (OECD, 2024[15]).
Sum of exports and imports of goods and services measured as a share of gross domestic product, 2022 or latest year available
Note: Data for OECD countries refer to 2022 except for Colombia, Germany, Japan and the United States. where they refer to 2021. Data for non-OECD countries refer to 2021 except for Bahrain, Djibouti, Syria and the United Arab Emirates, where they refer to 2020, 2019 for Kuwait and 2018 for Yemen. The MENA average refers to the unweighted average.
Source: For non-OECD countries: World Bank (2023[24]). World Development Indicators. Available at : https://datacatalog.worldbank.org/search/dataset/0037712/world-development-indicators. For OECD countries: OECD (2022[25]). National Accounts Data. Available at: https://www.oecd.org/en/data/datasets/gdp-and-non-financial-accounts.html
The impacts of trade integration differ between women and men
Economic and trade integration affects men and women differently based on their respective roles in the labour market and as consumers. As shown in Figure 1.3, a large share of women in Egypt are employed in two sectors highly exposed to trade: (1) recreational services – a composite set of activities that includes numerous services directly or indirectly related to the export of tourism; and (2) the production of textiles and apparel goods. During the COVID-19 pandemic, international trade was seriously disrupted and women’s specialisation in these sectors, which were particularly affected, left them more vulnerable than men. At the same time, higher trade costs hinder smaller businesses’ access to international markets more than large ones. This affects women more, as they tend to lead smaller businesses.
Female labour intensity, share of female employment in an economic activity divided by the share of female employment in the country, 2020
Note: Female labour intensity for each country is measured as the share of female employment in an economic activity divided by the share of female employment in the country.
Source: World Bank (2024[26]), The Gender Disaggregated Labor Database (GDLD), https://datatopics.worldbank.org/gdld/.
Barriers to trade, such as tariffs, stifle competitive prices in Egypt, including for basic consumer goods. While it is difficult to fully describe differences in men and women’s consumption patterns, women are more likely to be represented in poorer groups of the population. Analysis using harmonised household survey and tariff data from 54 low- and middle-income countries estimated the extent of the gendered impact of trade tariffs (Artuc et al., 2021[27]). It found that in the absence of trade protection across the countries considered in the study’s sample, the real incomes of female-headed households would be 2.4 percentage points higher, and 1.8 percentage points higher for male-headed households. Female-headed households are more adversely impacted by tariffs because they derive a smaller share of their income from protected sectors, and spend a larger share of their budget on agricultural and basic consumption products that are subject to higher trade barriers. According to AlAzzawi et al. (2024[28]), 17.6% of households in Egypt were headed by women in 2020.
Increasing trade could therefore benefit consumers, particularly women, and help alleviate poverty over time (OECD, 2024[15]). Egypt is a member of the World Trade Organisation (WTO) and the General Agreement on Tariffs and Trade (GATT). The country also ratified the Trade Facilitation Agreement in 2019 – a global multilateral initiative to harmonise and simplify the procedures that govern international trade (WTO, 2024[29]). Border clearance in Egypt has improved but remains slow compared to other countries. The implementation of the 2020 Customs Law and the NAFEZA (National Single Window for Foreign Trade Facilitation) system, a digital platform that connects all parties involved in imports and exports in Egypt, promises to further streamline border procedures and reduce costs. Lowering trade barriers further may increase consumers’ purchasing power and improve women’s access to essential goods and services, especially for women in lower-income households (Korinek, Moïsé and Tange, 2021[19]).
Governments, international organisations, and the private sector need to tackle the challenges that trade itself can create for women. Although the aggregate benefits from trade are positive, localised costs can severely hinder certain groups of women in the absence of effective adjustment policies that consider their roles in the economy, skills levels, the sectors of activity, and the geographical regions they live in. For example, given that women are currently disproportionately represented in occupations that require a lower level of skills, they are particularly vulnerable to the effects of trade-related shocks that directly expose female-dominated industries to foreign competition, or layoffs resulting from the introduction of new technologies (World Bank and WTO, 2020[20]). The extent to which women can take advantage of trade opportunities depends on more than trade policies alone. Investments in education, health systems, and infrastructure can provide women with the human capital they require to benefit from trade, particularly as workers, and social and cultural changes are required to address entrenched discriminatory attitudes that prevent women’s economic empowerment.
Several initiatives seek to open up opportunities for women as traders
Policy initiatives to promote regional integration increasingly include a gender trade perspective. For example, the African Continental Free Trade Area (AfCFTA) Agreement offers opportunities for women traders in Egypt and is strongly supported by the Egyptian Government. There is optimism that the AfCFTA, in active force since January 2021, will provide a unique opportunity for countries in the region to integrate into the global economy competitively, and – in the process – reduce gender gaps in labour force participation and wages. The World Bank estimates that, compared with business as usual, implementing AfCFTA would lead to an almost 10% increase in wages on the African continent, with larger gains for unskilled workers and women (Echandi, Maliszewska and Steenbergen, 2022[30]).
The AfCTFA Protocol on Women and Youth in Trade aims to promote sustainable and socio-economic development, encourage equal opportunities for women and youth in intra-Africa trade and support the structural transformation of African economies (UN ECA, 2024[31]). It was adopted by the African Union Assembly in February 2024. National consultations on the challenges facing women in trade identified several barriers, including a lack of access to information on trade and market opportunities; a lack of knowledge about the AfCTFA itself; limited knowledge of customs regulations, procedures and processes related to cross-border trade; and lack of overall export readiness among women entrepreneurs, including in being able to fulfil export requirements (AfCFTA Secretariat, UNDP and UN-Women, 2022[32]).
There are also a number of initiatives in Egypt aiming to support women-owned or led SMEs to become direct exporters. For instance, SheTrades and the Export Development Authority (EDA) are offering export training to women entrepreneurs. The 50 Million African Women Speak Platform (50MAWSP) is a digital peer-networking platform launched in Egypt in 2020 to link women entrepreneurs to international markets (Chapter 7). The platform seeks to empower women and youth entrepreneurs through the creation of a digital one-stop-shop and includes peer-to-peer learning, mentoring, financial services, market opportunities between urban and rural areas across 38 countries.
Women entrepreneurs will need additional support to help them access global markets
Achieving potential well-being gains from trade integration for women as workers, consumers and employers will require an appropriate set of policies to remove the barriers that hold women back from accessing international markets and dealing with adjustment costs (World Bank and WTO, 2020[20]; Korinek, Moïsé and Tange, 2021[19]). As discussed in Chapter 8, these barriers include women entrepreneurs’ difficulty in accessing credit and finance; their shortage of time to devote to their businesses, reflecting their disproportionate amount of unpaid work; shallower professional networks; and less experience in entrepreneurship and management. An OECD report shows that women-led firms are, in general, fewer, smaller, younger, and less well financed than those led by men (Korinek, Moïsé and Tange, 2021[19]). Relevant policies range from promoting access to finance and women’s participation in STEM, to greater access to entrepreneurship and networking opportunities (Korinek, Moïsé and Tange, 2021[19]).
There is a need for an integrated approach to the targeting and inclusion of women entrepreneurs in export support programmes given the large number of actors involved. Women entrepreneurs wishing to export might have to deal with the Export Development Authority (EDA), the Foreign Trade Training Centre (FTCC), the Egyptian Commercial Service (ECS), Micro, Small and Medium Enterprise Development Agency (MSMEDA), the Information Technology and Industry Development Agency (ITIDA) ExportIT programmes, the Industrial Modernization Centre (IMC), Ebank, the Egyptian Exporters Association, and the newly-established Export Academy project. Implementing an integrated approach to serving the export needs of women entrepreneurs would better ensure the inclusion of women in trade support activity and create a clearer pathway for women to move through the various stages of becoming export-ready and entering new export markets. This could include, for example, further developing the Businesswomen of Egypt 21 (BWE21) cross-platform application1 to provide women exporters with reliable information about trade-related service providers, including how other women exporters rate those services. Similarly, 50MAWSP could be further promoted as a source of knowledge and learning for women entrepreneurs. The Women and International Business Programme in Brazil (Box 1.2) offers an example of an integrated approach to improving the inclusion of women in export promotion.
The Export and Investment Promotion Agency of Brazil (Apex-Brasil) launched the Women and International Business Programme (MNI) in June 2023. The programme aims to improve the inclusion of women as well as bolster the government’s gender equity agenda. Prior to 2023, only 10% of the businesses serviced by Apex-Brasil were women-led (approximately 1 400 companies). Through the MNI, the agency hopes to increase this proportion to at least half of supported businesses by 2026.
In addition to demonstrating to more women that it is possible to export, the MNI provides women entrepreneurs with the essential tools needed for operating in international markets. Its support covers an array of areas, including services and products for non-exporters, new exporters and mature exporters who want to open new international markets. It enables women entrepreneurs to access the entire range of commercial promotion and export qualification activities provided by Apex-Brasil and its more than 20 partners, including the Entrepreneurial Women Network (Rede Mulher Empreendedora, RME) and the Ministry of Development, Industry, Trade and Services. Through the partnership with the ministry, programme participants also have access to a mentoring programme (Elas Exportam).
In October 2023, the Apex-Brasil MNI programme partnered with the RME as a sponsor of the RME Festival, bringing together 5 000 businesswomen from all over Brazil to encourage more women-led companies to follow the internationalisation path.
Source: ApexBrasil (2023[33]), Apex-Brasil Startups Program, https://www.apexbrasil.com.br/en/startups-program.
It will also be important to increase the visibility of women in trade missions. This will require increasing the availability of export training for women entrepreneurs and related support programmes of the FTCC. This could include the offer of a women-focused Start Training for Export Professionals (STEP) programme.2 In addition, the EDA could collaborate with the Egyptian Commercial Service on greater inclusion of Egyptian women exporters in international trade missions and business-matchmaking opportunities. In co-operation with SheTrades Egypt and Businesswomen of Egypt 21 (BW21), this could include the organisation of women-only trade missions – an increasingly common practice in countries around the world.
Another important component is to assist women-owned or led SMEs to build their capacity and opportunities to participate in global value and supply chains (as indirect exporters). This requires three essential areas of support to women entrepreneurs (FAO, 2016[34]): (i) building capacity in business management skills, know-how and connections; (ii) helping them acquire new or upgraded production equipment to improve their efficiency, product quality and ability to meet buyers’ requirements; and (iii) improving access to supply chain finance to address associated costs with upgrading upgraded equipment, acquiring quality standards certifications and the need for working capital.
Growing capability in and access to digital technologies provide new avenues for the empowerment of women and girls and can contribute to gender equality. In Egypt, mobile broadband coverage is virtually universal – with data communications coverage approximating around 99% for 2G, 97% for 3G, and 61% for 4G, respectively. This reflects a well-established ICT sector, one of the largest in the MENA region, and which is poised to continue to support digital transformation going forward (World Bank, 2020[35]). The Internet, online platforms, mobile phones and digital financial services give women and girls opportunities to earn additional income, widen their employment opportunities and access knowledge to help bridge the digital gender divide (OECD, 2018[36]). In the MENA region, digitalisation can help lift traditional impediments to female labour market integration – from cultural barriers and travel restrictions – that preclude access to training, information on job vacancies, etc. It can also help bypass discriminatory practices in recruitment processes, as well as restrictions to the access to financial resources, networks, and mentoring (OECD, 2023[37]).
Digitalisation also offers many benefits for MENA women entrepreneurs, as highlighted in the regional dialogue organised by the MENA‑OECD Women’s Economic Empowerment Forum (WEEF) (OECD, 2021[38]). For example, the digitalisation of production, managerial and accounting practices allows women entrepreneurs to use new business models and helps them to operate entrepreneurial projects from home. Online payment and e-commerce innovations simplify trade, including across borders, enabling women entrepreneurs to reach new markets. These new opportunities for doing businesses might be particularly beneficial to women in the MENA region, who often struggle to reconcile paid work with family responsibilities, and face impediments in accessing capital, leasing, and owning property.
Nevertheless, as elsewhere in the MENA region and around the world, ensuring equal access to the opportunities opened up by new technologies requires appropriate policies. The share of women using the Internet in Egypt is almost 9 percentage points lower than for men (OECD, 2023[39]). Although the geographic coverage of the mobile infrastructure is expanding, the rate of mobile coverage remains well below the national average in rural areas. Egypt has 9.94 fixed broadband subscriptions for every 100 inhabitants, which is below the MENA and OECD averages of 11.89 and 34.9 per 100 inhabitants, respectively (OECD, 2023[40]). Strengthening Internet access for people in rural areas will be important to help close gender gaps for women living in these areas. At the same time, companies will need to promote work cultures in which remote working isn’t penalised – giving equal opportunities to remote and office workers in terms of pay, career advancement and training opportunities – and where work-from-home arrangements are not framed as women’s issues. Access to child and elderly care services should also be available to remote workers (OECD, 2020[41]). Chapter 6 discusses these issues further.
With an annual growth of 30% during the 2021-23 period, the growing digital economy in MENA is a promising industry to drive job growth. Demand is growing for workers with advanced digital competences, such as data analysts and scientists, artificial intelligence (AI) and machine learning specialists, digital marketing and strategy specialists, software developers, etc. (OECD, 2023[37]). At the same time, more traditional sectors such as logistics, manufacturing and health are increasingly demanding employees with a range of digital skills, while digital government services depend on a population with basic digital skills. The underrepresentation of women in jobs and key decision-making roles related to ICT and AI reduces the chances that their experiences and voices are heard in the development of new technologies, possibly perpetuating gender gaps and biases (ITF Global, 2021[42]). An ILO study shows that in general men in Egypt are more likely to find employment upon finishing tertiary education than women, and this gender gap is even larger in the ICT fields. Women in ICT are employed at a rate of only 21%, whereas for men the rate is close to 74% (ILO, 2022[43]). Of the 21 AI start-ups active in the country in 2021, only 2 had female founders (ITIDA and Disrupt Africa, 2021[44]; OECD, 2024[45]). The underrepresentation of women in ICT professions is also an issue in OECD countries.
Women STEM graduates find it harder than men to obtain jobs in these fields. While the number of female students in science, technology, engineering, and mathematics (STEM) is comparatively high in Egypt – women comprise 37% of students in ICT, and 21% in engineering degrees (UNESCO, 2021[46]) – there is a lower share of women in the ICT and STEM workforce (Chapters 5 and 7). Female ICT graduates are much more likely than their male counterparts to be unemployed after university (ILO, 2022[43]). Raising the quality, completion rate, and labour market relevance of technical and vocational education and training in Egypt will be an important priority given that over half (55%) of young people complete this type of education (OECD, 2024[15]).
Digitalisation also creates new concerns, including new forms of informality – potentially eroding working conditions, job and income security, access to social protection and collective bargaining rights – as well as the dangers posed by AI. Legal loopholes regarding teleworking or platform work weaken regulatory frameworks (OECD, 2023[37]). It will be important to ensure that effective legislation and regulations are in place to guarantee platform workers’ labour rights, clarify their classification and improve their working conditions. Egypt is the first Arab and African country to adhere to the OECD Recommendation on Artificial Intelligence in 2021. The country has made progress in the implementation of the OECD AI principles, which promote use of AI that is innovative and trustworthy and that respects human rights and democratic values (OECD, 2024[45]). In line with these OECD AI Principles, AI actors should implement mechanisms and safeguards to address risks of gender discrimination and proactively engage in responsible stewardship of trustworthy AI that reduces gender inequalities (OECD, 2024[47]).
Biodiversity loss, pollution, and climate change threaten economic opportunities and pose major health and well-being risks to populations in Egypt and around the world. Climate change poses a direct threat to the health and well-being of the most vulnerable population groups in Egypt, mainly through risks to food security, and agricultural land use. The heavy concentration of population and agricultural production along the Nile River and in its delta makes the country and its economy particularly vulnerable to the effects of climate change. The Nile River’s flow is affected by heatwaves and sea-level rise (Abou-Ali, Elayouty and Mohieldin, 2022[48]), exacerbating water stress and biodiversity losses. According to estimates by the Egyptian Government, rising sea levels, erosion and flooding could reduce agricultural production by 30% in the Nile Delta by 2030 and could lower national agricultural output by 10% (Government of Egypt, 2023[49]). Other challenges in Egypt include air pollution, marine plastic pollution, and waste disposal and management (OECD, 2024[15]). Green growth and sustainable development are high on Egypt’s political agenda and Egypt’s Vision 2030 (Government of Egypt, 2023[50]) promotes an integrated approach to sustainable development.
Poor households are typically the most severely affected by the impact of climate change, given their lack of resources to adapt to its negative consequences (OECD, 2024[15]). The World Bank estimates that the share of Egypt’s population living below the poverty line (on less than USD 4 a day) will increase by 0.8% by 2030 due to climate change, in particular through its impacts on agriculture, and on health due to extreme temperatures (World Bank, 2022[51]). Effective and targeted social protection can mitigate disruptions to people’s livelihoods caused by climate change or the green transition. The ongoing reform of Egypt’s social protection system could extend social protection to informal workers, the working poor and those on or below the poverty line, while maintaining adequate levels of protection (OECD, 2024[15]). Climate and disaster risks need to be considered in the planning and design of social protection programmes, while revenues from climate mitigation policies such as carbon pricing could be used to prevent a regressive impact on incomes (Keese and Marcolin, 2023[52]).
Women are particularly exposed to the impacts of environmental disasters and climate change more generally because of socio-economic barriers and inequalities in access to resources (UNESCO, 2022[53]) (OECD, 2023[37]). In poorer areas especially, women are often responsible for securing water, food and fuel for cooking and heating, and are therefore vulnerable to changes in the availability of resources and in the environment (OECD, 2021[54]). At the same time, women are uniquely well placed to act as agents of change in mitigating climate emergencies (UNESCO, 2022[53]). Because of the role they have long played in agriculture and food security, they have specific knowledge to contribute to livelihood strategies. It will therefore be important to consult women and take their views into account when designing climate change management strategies. Greater representation of female leaders in shaping environmental policies could also contribute to better environmental outcomes beyond the local and community levels (OECD, 2021[54]).
While climate change could have negative labour market effects, mitigation measures and the green energy transition bring new economic and employment opportunities. Recent research examined the effect of changes in climate indicators on weekly working hours in Egypt, Jordan and Tunisia (Abou-Ali et al., 2023[55]). After controlling for socio-economic and demographic variables (age, gender, education, and household wealth), the results point to reductions in labour supply in several sectors that are particularly exposed to climate change, such as construction and mining, as well as agriculture, which is particularly dependent on the work of women in rural areas. However, a successful green transition to lower-emission sources of energy might have positive effects. A study by the International Renewable Energy Agency estimates a 0.3% increase in economy-wide employment between 2021-2050, and a GDP that is 5.5 percentage points higher in an ambitious energy transition scenario where global warming can be kept to 1.5°C, compared to the energy scenario laid out by government plans and targets in 2020. In the ambitious energy transition scenario, the renewable energy sector would see most jobs growth, while the sizeable increase in GDP could mainly be attributed to a lower dependence on fuel imports (IRENA, 2023[56]).
Training is crucial to equip women workers with the skills required for green-driven occupations. Flexible, short learning programmes and financial support can reduce some of the barriers adults, and especially women, face in participating in training. Sustainable finance and environmental, social and governance (ESG) policies represent an opportunity for mainstreaming gender equality in training and green jobs. For example, Schneider Electric issued the first ever sustainability-linked convertible bond with corporate performance targets related not only to emission reductions, but also to gender diversity (in leadership, management and the workforce) and training of disadvantaged people in energy management (OECD, 2021[54]). Sustainable finance should also support women’s participation in the labour market and their access to green jobs. As discussed above, women are underrepresented in STEM-related jobs – areas that are highly valued in the green economy and the financial sector. Targeted investment in skills development programmes for men and women would help to avoid bottlenecks in the talent available for the green transition, in addition to mitigation and adaptation programmes (Keese and Marcolin, 2023[52]).
A number of women’s empowerment initiatives have been launched to promote adaptation and mitigate the effects of climate change. In 2022, in line with Egypt’s Vision 2030, the Government of Egypt launched the National Initiative for Smart Green Projects.3 The initiative aims to promote green entrepreneurship, create innovative Egypt-led solutions to climate change and environmental sustainability challenges, and support green technologies and practices. One of its objectives of the initiative is to empower women to face climate change and environmental issues by implementing development projects that drive empowerment and equal opportunity in green sectors. The major focus is on integrating women in sustainable green development projects at the local community level, as women play a key role in agricultural and small economic activities in villages. Another initiative related to women’s entrepreneurship and the green economy is the Digital Path for Sustainable Green Recovery Initiative by the Ministry of Communications and Information Technology (MCIT). It holds sessions and workshops to educate and engage individuals, especially female entrepreneurs and small business owners, in identifying and responding to climate change impacts that threaten sustainable development. The Qodwa-Tech Initiative also aims to promote a sustainable digital green economy among women entrepreneurs.
There is a need to scale-up green entrepreneurship projects for women. At this point, only a couple of projects specifically target women. Initiatives such as the European Bank for Reconstruction and Development (EBRD) Programme to Support Women in Green Energy in Egypt, which offers training, access to sustainable financing and measure to support the adoption of low-carbon technologies, could be scaled-up to support more women entrepreneurs. Additionally, key actions outlined in a key issues paper on women, environment and climate change by the NCW should be implemented. These actions aim to promote women’s empowerment in addressing the climate crisis and to foster green growth through capacity building and educational programmes, promoting the role of women in green sectors and businesses, showcasing women-led green initiatives and environmental mechanisms to change stereotypes of women’s role in this sector and offering green credit lines and banking services for women (Morsy, 2022[57]).
One common approach in other countries to fostering women’s participation in the green transition is to design and launch a dedicated women’s entrepreneurship green initiative. An initiative such as this could potentially be launched under the Women’s Economic Empowerment for Inclusive and Sustainable Growth in Egypt (Rabeha) Programme, the UN Women/UNIDO programme being implemented in partnership with the NCW, Ministry of Trade and Industry and MSMEDA. One of the objectives of the Rabeha programme is to support the establishment of innovative, green businesses. This green business initiative could consist of a virtual incubator platform for women entrepreneurs with innovative projects to provide solutions to environmental challenges, such as in the design, production and delivery of green technologies, products, and services to mitigate the effects of climate change. These entrepreneurship projects could relate to the circular economy, waste and water management, renewable energy technologies, energy conservation, biodiversity, climate smart agriculture, and others deemed by Egypt to be critical areas of green innovation. A possible delivery partner for the potential “Women’s Entrepreneurship Green Initiative Incubator Project” could be the Nile University NilePreneurs Incubate Programme (described further in Chapter 8). The pan-African Greenovations Project by could serve as a good model for developing a women-tailored green entrepreneurship initiative in Egypt (Box 1.3). Another example is the WomenEntrepreneurs4Good project in France, which is an online incubation and acceleration programme that was launched in 2021 to support green entrepreneurs in the early stages of project development.4
The Greenovations project launched in May 2022 with the aim to organise support and identify solutions for women and young entrepreneurs in five green sectors: renewable energy, climate action, climate smart agriculture, waste management and water management. One of the project’s goals is to support a pipeline of gender-diverse green start-ups to attract impact investors.
The initiative is led by the United Nations University and builds on a large project funded by the International Development Research Centre (IDRC) and carried out by the United Nations University Institute for Natural Resources in Africa. The project includes virtual-access technology and innovation hubs in the green sector with the aim to inspire green innovation start-ups, particularly among women and youth. The virtual incubator combines incubation and post-incubation programmes and includes services to support start-up and early-stage enterprises with sector-specific skills, appropriate training, mentoring, business coaching and seed funding to enable them to design and introduce their viable and market-ready innovations in the market.
The first call for applications to the Greenovations Africa Programme in 2023 received 777 quality applications from five regions of the continent. Women represented 60% of the first cohort of 30 selected applicants.
Source: IDRC (2023[58]), Promoting women entrepreneurs' participation in West Africa's clean energy transition, https://idrc-crdi.ca/en/research-in-action/promoting-women-entrepreneurs-participation-west-africas-clean-energy-transition; Greenovations (2023[59]), About Greenovations, https://greenovations-africa.org/about/.
Through a comprehensive mix of effective policies that take into account and address existing gender gaps, Egypt can promote an equal sharing between men and women of the benefits and risks of the demographic, globalisation, digital and green transitions:
Recommendation 1. Promote women’s economic empowerment and invest in family policies
Promoting women’s empowerment and their participation in the labour market will help Egypt reap the benefits of the demographic transition. To this end, Egypt can:
Policy consideration 1. Invest in voluntary family planning policies, including reproductive healthcare
Policy consideration 2. Expand access to formal care services, especially for young children
Policy consideration 3. Provide incentives for a more equal sharing of work and care responsibilities between men and women, for example through access to paid parental leave
Policy consideration 4. Promote women’s access to health, education and adult training.
Recommendation 2. Support women’s participation in sectors linked to global value chains
Policies that support women’s participation in sectors linked to global value chains will boost Egypt’s growth and economic integration in global markets. To this end, Egypt can: women-owned or led SMEs and
Policy consideration 1. Expand programme support (such as SheTrades) to develop the export activity of women-owned and led SMEs, including through improved access to trade finance and focused support for export readiness and capacity to integrate in supply chains
Policy consideration 2. Provide access to childcare for entrepreneurs and self-employed workers
Policy consideration 3. Promote women’s access to support measures targeted at groups of workers that may be negatively affected by trade.
Recommendation 3. Pursue opportunities for women linked to digital technologies
To help women, and Egypt more generally, reap the benefits of the digital transition, Egypt can:
Policy consideration 1. Promote women’s access to digital technologies
Policy consideration 2. Strengthen women’s opportunities to develop digital skills, with a focus on young women and girls
Policy consideration 3. Implement mechanisms and safeguards to avoid gender discrimination in AI systems and promote responsible stewardship of trustworthy AI that reduces gender inequalities.
Recommendation 4. Enable women entrepreneurs to leverage the opportunities created by the green transition
To mitigate disruptions to people’s livelihoods caused by climate change or the green transition, and to enable women to embrace the jobs and business opportunities created, Egypt can:
Policy consideration 1. Pursue transformative efforts to advance towards a greener economy, accompanied by effective and targeted social protection
Policy consideration 2. Consult women and take their views into account when designing climate change management strategies, and ensure greater representation of female leaders in shaping environmental policies
Policy consideration 3. Promote green entrepreneurship, create innovative Egypt-led solutions to climate change and environmental sustainability challenges, and support green technologies and practices
Policy consideration 4. Offer targeted training and employment support to help workers, and women in particular, transition to green-driven occupations
Policy consideration 5. Design and launch a dedicated women’s entrepreneurship green initiative.
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← 1. See: https://bwe21trade.com/.
← 2. STEP is a specialised training course in export and foreign trade aiming to prepare and qualify enterprises wishing to move towards exporting. Upon completion of the training, graduates are directed to the EDA, the Ebank and other financing bodies to obtain the financing to start or expand their export activities.
← 3. The project is implemented in partnership between the Ministry of Planning and Economic Development, the MCIT, the Ministry of International Cooperation, the Ministry of Environment, the Ministry of Local Development and the NCW.