This Chapter offers an overview of the public administration in Egypt and identifies related strengths and challenges for its reform agenda to contribute to achieving more effective, citizen-oriented and evidence-based policy outcomes. In doing so, it provides a snapshot of the effectiveness of the public administration, explores crucial building blocks of a sound public governance system and looks at the existing capabilities in Egypt to respond to contemporary cross-cutting challenges whilst progressing towards the SDGs. The chapter also explores the current economic context in Egypt and examines how public governance reforms can support more effective policy responses in an era of multiple global crisis. It concludes with an overview of the aim, methodology and main recommendations of this Review.
OECD Public Governance Reviews: Egypt
Abstract
Good governance is fundamental for a functioning, effective and transparent public administration that delivers quality goods and services to citizens and businesses. When implemented strategically, public governance reforms can be a key instrument for more efficient, effective and citizen-centred public administrations, as it forms the basis for the effective implementation of strategic frameworks and policies. Indeed, a modern and well-functioning administration is a precondition for establishing an inclusive public policy that is able to deliver national development results through improved services. In the process of rolling out public governance reforms, it is also essential to have efficient public financial management systems to equip public institutions with the right resources to deliver, ensure their transparent management and keep actors accountable for their disbursement and value for money.
In this regard, the Government of Egypt has embarked on an ambitious reform process to achieve key strategic objectives for the country’s sustainable economic and social development and growth through the adoption of the updated version of Egypt Vision 2030 (See Chapter 2). This whole-of-society strategic framework led by the Ministry of Planning, Economic Development and International Cooperation (MPEDIC) is the first of its kind to place sustainable development at the front and centre of cross-sector policies to promote economic growth, social inclusion and prosperity for future generations in Egypt. The commitments therein are aligned with the United Nations Sustainable Development Goals (SDGs), as well as the African Agenda 2063, and act as the governing framework for all development programmes and projects implemented across sectors and levels of government. Notably, the development programmes stemming from this vision aim to improve the livelihood and satisfaction of Egyptian citizens. In recent years, national flagship development programmes have been implemented across various sectors, including education, health, housing and family development. In doing so, the government has paid particular attention to empowering youth, women and other segments of the population through targeted and mainstreamed actions.
These efforts have taken place alongside a robust public administration reform process. Notably, the Central Agency for Organization and Administration (CAOA) has led the implementation of the Public Administration Reform Plan (PARP) since 2019 and has spearheaded efforts in this regard. The PARP aims to gradually transform the state administrative apparatus in efforts to modernise its operations, adopt novel technologies and upskill the public sector workforce (See Chapter 3). It seeks to do so through five pillars promoting a series of legal, institutional, human and financial reforms, focusing on improving the quality, access and relevance of public services. A key pillar of the PARP focuses on optimising public services through various methods, including digitalisation and the use of information technology to improve public service delivery. The Ministry of Communications and Information Technology (MCIT) leads the implementation of this pillar and has translated the relevant objectives and projects into a sectoral national strategy on digitalisation, Digital Egypt, covering three important areas: digital transformation, digital skills and jobs, and digital innovation (See Chapter 5). CAOA is in the process of updating the PARP and further aligning its strategic objectives therein with the updated version of Egypt Vision 2030 to ensure the effective implementation of the necessary public administration reforms and achieve the government’s goals by 2030.
These reforms together underpin Egypt’s commitment to promoting good governance enshrined in the 2014 constitution. The provisions therein stress the reduction of income disparities, balanced growth, inclusion and human rights, including gender equality. In doing so, the constitution refers to the importance of maximising investment in human capital within the framework of sustainable development. It also recognises the importance of guaranteeing access to information (Article 68) and enabling young people to engage in public decision-making (Article 82).
The path towards reforming the public administration, however, is not always linear. As in many OECD countries, reforming the public administration is a gradual process that introduces profound transformations to the very structures, working methods and processes of public institutions. Governments must balance short- and long-term priorities whilst contending with uncertainty, resistance to change and pressures to continuously deliver results. The following sections of this Chapter offer an overview of the public administration in Egypt, identifying its strengths, challenges and how its reform agenda can contribute to achieving more effective, citizen-oriented and evidence-based policy outcomes. In doing so, the following sections will provide a snapshot of the effectiveness of public administration, explore crucial building blocks of a sound public governance system and look at its capabilities to respond to contemporary cross-cutting challenges, including the digital and green transitions, whilst progressing towards the SDGs. The chapter will also seek to highlight the current economic context in Egypt and examine how public governance reforms can support more effective policy responses in an era of multiple global crisis.
While the government of Egypt has embraced an ambitious reform agenda, it faces some challenges ahead in the delivery of these commitments. Indeed, these transformations must take place alongside a rapidly changing socio-political context in the country, with a poverty rate of approximately 29.7% of the Egyptian population as of 2019/20 (OECD, 2024[1]; APRM, 2021[2]). The latest OECD Economic Outlook (2023[3]) also underlines that multiple ongoing global crises could lead to renewed supply chain disruptions, which may continue to impact food security in Egypt and other economies in the region, given the relative dependence on exports. At the same time, the administration must contend with overcoming rapid technological, demographic and socio-political changes. The following section, therefore, takes stock of the present context underpinning and driving reforms to modernise the civil service as well as promote more inclusive growth in Egypt.
The effective implementation of Egypt Vision 2030 and the PARP will be paramount to enhance the effectiveness of the public sector
Mounting pressures to deliver results whilst navigating an uncertain and changing global landscape have been driving forces behind efforts to strengthen existing governance arrangements in Egypt. In this context, the Government of Egypt is revamping its strategic reforms to build a modernised administration that can meet the challenges of the 21st century, particularly by updating Egypt Vision 2030 and the PARP. As a result, strengthening existing policy frameworks and an enabling environment for their implementation has been high on the government’s agenda and is considered of utmost priority in the coming years to ensure the delivery of these historic reforms by 2030 and beyond.
In this regard, MPEDIC led a process for the updating of Egypt Vision 2030, culminating in 2023, to strengthen the link between investments and socio-economic programmes for sustainable development, address pressing challenges hindering socio-economic growth (i.e. water scarcity, climate change, high population growth) as well as respond to the unprecedented effects of the COVID-19 pandemic. Seen as a “live” working document, this whole-of-society policy framework acts as an umbrella under which all government strategies are aligned (MPED, 2023[4]) (see Chapter 2). Egypt Vision 2030 is organised along six national strategic goals together with seven enablers to operationalise these across sectors and levels of government.
Following suit, CAOA is currently reviewing and updating the PARP to scale the rollout of new institutional structures across ministries, upskill the civil service and launch an observatory for public service delivery (see Chapters 3 and 4). Plans for revamping the public administration reform process aim to build on key achievements to date, including the issuance of the civil service law, the move to the New Administrative Capital, the launch of the national capability assessment and competitions centre for civil service exams, the civil service job portal, the new job performance appraisal system for the civil service and the job classification and degrees system for the public sector amongst others. The reform has also advanced efforts in regards to institutional development by restructuring ministries and establishing new divisions such as digital transformation units, internal auditing and governance units, strategic divisions and human resource units.
Modernising the public administration, however, is not a goal in itself. Rather, it is a gradual and ongoing process to build robust institutions and ensure coherence across policy sectors and levels of government. Indeed, this cross-cutting agenda requires maintaining strong high-level political support and mechanisms for continued inter-ministerial co‑ordination. Setting and prioritising objectives and themes in public administration reform plans is essential to ensure that this strategic framework answers to citizens’ growing and changing expectations. Aligning high-level priorities on public administration reform will be all the more important, as the PARP covers a wide breadth of sectors and policies that require a whole-of-government co‑ordination for its success, including key government strategic frameworks such as Egypt Vision 2030 and the Government Programme titled “Together We Build a Sustainable Future” for 2024/2025–2026/2027”1. Indeed, further embedding a whole-of-government approach will be crucial for the success of reforms in Egypt, particularly to transform objectives and goals into measurable, actionable, time-bound programmes, procedures, commitments and tasks across units and line ministries for its successful rollout.
Increasing the effectiveness of the public administration has been a key objective of the Government of Egypt, enshrined in its strategic frameworks and endorsed at the highest political levels. Under its sixth strategic objective on enhancing governance and partnerships, Egypt Vision 2030 underlines how the governance of state institutions serves as an essential prerequisite for achieving all of the goals and objectives outlined in Egypt Vision 2030 (MPED, 2023[4]). This strategic objective has been broken down into seven general goals, including: implementing administrative reform, promoting transparency and combating corruption, enhancing accountability and responsibility, empowering local administration, fostering partnerships, promoting regional and international co‑operation and preserving stability and security. At the same time, the 2014 PARP recognises that enhancing public governance constitutes the basis for a successful design and implementation of strategic frameworks, regulations, policies and public services that meet the needs of citizens in pursuit of the SDGs. Efforts to implement the PARP and modernise the civil service will be further explored in Chapters 3 and 4 respectively.
While progress has been achieved with the adoption of a number of reforms and measures in recent years, further efforts will be needed to continue to translate these ambitious commitments into outcomes. Referring to the World Bank Government Effectiveness Index, Egypt stood in 2021 at the 120th position out of 191 countries. Following a number of key reforms and measures, the country has recorded progress in recent years, with Egypt’s score increasing from 20 in 2016 to 35.6 in 2021 on the World Bank Government Effectiveness in the Worldwide Governance Indicators (World Bank, 2021[5]). While absolute scores on this index showcase the perceptions of the quality of public services, policy implementation and civil service commitment, the historical trends reveal that progress towards delivering results is not always linear. As Figure 1.1 illustrates, Egypt still fares lower than the MENA regional average but has seen significant progress since 2012 alongside a recent decline following 2019.
Nevertheless, taking stock of the public administration’s overall effectiveness in Egypt requires further reflection on five core dimensions of the OECD Public Governance Monitor Framework (Figure 1.2). Indeed, understanding the underlying trends that underpin the success and pain points of reforms can provide a solid foundation for the government to revamp existing policies and services. These dimensions will be analysed in the following section to provide an overview of the public administration, including its policy, legal and institutional setting, as well as potential areas for future reform in Egypt.
Note: Score: -2.5 weak; 2.5 strong.
Source: World Bank Group Governance Indicators (2023[6]).
Source: Based on OECD (2023[7]), Public Governance Monitor of Sweden.
The Egyptian administration is one of the largest in the MENA region, introducing both opportunities and challenges to enhance its productivity
Public administration reform does not happen in a vacuum. Indeed, Egypt’s public sector is composed of a complex landscape of multiple actors, processes and laws against which existing policy frameworks must operate and ensure their productivity.
The size of the Egyptian public sector remains large, making the improvement of public sector effectiveness an imperative to deliver quality and cost-effective public services and policies and increase fiscal sustainability. The Public administration is organised on the basis of a strong hierarchical and vertical structure that consists of three levels as per the law of civil service no. 81/2016 and the law of local administration no. 43/1979. It is structured around i) Ministries and affiliated departments\bodies, ii) Public institutions managing facilities and utilities as well as iii) local administrations. This makes the structure of the public administration in Egypt complex, by being comprised of approximately 707 ministries, government departments and administrative units, employing approximately 5 million workers(see Chapter 4). As in various economies in MENA, the public sector is one of the largest employers with public jobs representing an estimated 22% to 26% of total employment in Egypt on average. A large public sector apparatus is a factor that can contribute to complex and overregulated bureaucratic processes, creating burdens and inefficiencies for both the public and private sectors as well as citizens (OECD, 2023[8]). Together, these specific characteristics of the Egyptian public administration underline the need for systematic, whole-of-government and evidence-driven policy responses to deliver on the PARP and achieve key results for citizens (see Chapter 3).
The Government of Egypt has also placed a renewed emphasis on pursuing regulatory reform to reduce administrative burdens, improve the business climate, promote citizens’ rights, and enhance public service delivery. Notably, Egypt adopted its first legislative drafting guide to enhance legislative and regulatory quality (OECD, 2019[9]). It is also undertaking efforts to enhance the accessibility of the justice system to disadvantaged groups, in particular children, by strengthening the capacity of the Egyptian justice system to better protect children in contact with the law (OECD, 2023[10]). While progress has been achieved, further efforts will be needed to improve the quality of regulatory outcomes, reduce existing regulatory burdens and enhance implementation efforts, through an enabling legal, institutional and administrative setting and the implementation of the legislative drafting guide (OECD, 2019[9]). This will be all the more important as regulatory enforcement in Egypt remains below the regional average (0.36 in comparison to 0.5 in 2022) and as the country ranks among the lowest performers (149 out of 150 in 2022) regarding its ability to conduct administrative proceedings without unreasonable delay (see Figure 1.3). Chapter 5 will further expand on the importance of and avenues for addressing the complex regulatory landscape through a cross-cutting strategy for administrative simplification, which should form an integral part of the country’s information and communication technology (ICT) strategy for public service delivery.
Note: Score from 0 to 1, where 1 represents the greatest level of openness or regulatory enforcement.
Source: World Justice Project (2022[11]), WJP Rule of Law Index, https://worldjusticeproject.org/rule-of-law-index/factors/2022/Regulatory%20Enforcement/.
In line with Egypt’s commitment to the United Nations 2030 Agenda, the government has recognised the development of performance management systems as an important pillar of the governing framework for the implementation of the SDGs and good governance more broadly. MPEDIC recently developed the Procedural Guide for Monitoring and Evaluation, through which its strategic management unit provides technical support to the various ministries in the state’s administrative apparatus by establishing their units and building capabilities for performance measurement. While this represents an important step ahead, efforts will require scaling and disseminating newly established procedures within ministries to build their capabilities. Other efforts spearheaded in this regard include the creation of online monitoring and evaluation systems, the Integrated System for Investment Plan Preparation and Monitoring (ISIPPM) and the government’s performance follow-up system, ADAA, to embed an evidence-driven approach into Egypt Vision 2030 led by MPEDIC (see Chapter 2). At the same time, CAOA, under one of the PARP’s main pillars seeking to promote a data-driven civil service, has undertaken efforts to consolidate databases and move towards the establishment of digital systems (see Chapter 5 on administrative simplification). CAOA has also signalled as a priority the establishment of an Observatory for public services with a view to develop a framework to measure the performance and quality of citizen-centred public services.
Despite key milestones achieved to date, various challenges persist in terms of data gathering, data disaggregation and use, which are hindering overall analytical capacities for evidence-based policy and regulation making in the administration. First, developing data governance protocols for the systemic and coherent collection, use and storage of public information by government institutions will be vital for the implementation of the new procedural guidelines for monitoring and evaluation as well as to enhance the vertical and horizontal co‑ordination on the collection and use of data (Igrioglu, Ostry and Allam, 2020[12]). Second, insights from OECD data collection workshops revealed difficulties within line ministries in terms of distinguishing between monitoring and evaluation practices. This has contributed to the ad hoc use of quantitative and qualitative data and evidence for the purposes of strategic management, performance measurement, change management processes and knowledge management across the civil service. Third, stakeholders underlined challenges during OECD interviews in terms of quantifying and reporting on governance indicators, as performance management of progress towards achieving the SDGs has been done through a comparison of international indicators.
Efforts to build a modern, efficient and data-driven public administration remain vital in driving Egypt’s efforts towards achieving the SDGs by 2030. In fact, the OECD (2021[13]) found that over 165 countries are lagging in the achievement of the SDGs, partly due to recent crises but, more importantly, operational challenges within public administrations and a lack of a results-oriented approach within implementing institutions. While there is consensus on the importance of the SDGs, meaningful transformations within public administrations have yet to follow suit. It has been projected that 85% of the SDGs will not meet their targets by 2030 and progress has regressed on 8 of the 17 goals (UN, 2022[14]). While challenges remain for all SDGs to be met, Egypt has made continuous progress in many development areas (Figure 1.4). The country ranks in the middle field of all assessed countries under the SDG Index for 2024 (83 out of 166 countries). Egypt has notably made progress in achieving SDG 4 “Quality education”, SDG 6 “Clean water and sanitation” and SDG 12 “Responsible consumption and production”, for example. Nevertheless, evidence reveals the need to further deploy efforts to enhance and strengthen governance arrangements in Egypt, given its current “stagnating” standing regarding SDG 16 on peace, justice and strong institutions (UN, 2024[15]).
Source: UN (2024[15]), 2024 Sustainable Development Index: Egypt, https://dashboards.sdgindex.org/profiles/egypt-arab-rep.
Resilience and agility as core principles for the modernisation of the Egyptian public apparatus
In the face of multiple crises and heightened uncertainty, governments are increasingly called upon to enhance their capabilities to navigate and effectively respond to external shocks in a co‑ordinated and efficient manner. In addition to the effects of climate change as well as the current global challenges, the COVID-19 pandemic has particularly laid bare the necessity for public administrations to become more agile and resilient. Resilience is characterised by the capacity to absorb, adapt and learn from disturbances while essentially retaining the same function as prior to the disruptive shock (OECD, 2021[16]). Agility pertains to the capacity of governments and administrations to proactively identify and respond adequately to public policy challenges with a view to preventing bottlenecks and crises (OECD, 2023[17]; 2023[18]).
Faced with pressing global challenges, including those on water scarcity and food insecurity, Egypt has taken important steps towards strengthening the resiliency and agility of its public administration, notably through the implementation of Egypt Vision 2030 and the PARP. In particular, the government has identified a series of enablers for a highly functioning public administration whilst reforming the needed institutional arrangements (i.e. new organisation charts, creation of Digital Transformation Units, etc.) in line ministries and governorates for the delivery of vital policies and services. In this regard, a robust strategic planning process is crucial, as it facilitates the translation of high-level objectives into long- and medium-term strategies, along with clear operational action plans, and plays a key role in aligning and ensuring the consistency of plans and priorities to guarantee coherence and efficiency (OECD, 2023[19]). While considerable efforts have been undertaken to strengthen co-ordination arrangements and modernise performance management, adopting a whole-of-government approach remains vital to ensure an agile and robust strategic planning process with clear procedures and institutional responsibilities. In addition, expanding the horizon of strategic objectives beyond the present 2030 milestone will be key to ensuring the longevity and continuity of reforms.
The Government of Egypt, as a result, has established various committees as co-ordination mechanisms to address horizontal priorities. Some of these bodies include the National Committee for Monitoring the Implementation of the Sustainable Development Goals and the Higher Committee for Administrative Reform (see Chapters 2 and 3 for further details). While these have been gradually consolidated, evidence from OECD interviews reveals that their structure, composition, frequency of meetings and functioning could be further improved to achieve a whole-of-government approach to reforms. According to CAOA, Egypt has established a coordination mechanism within the recent cabinet reshuffle by forming three ministerial groups, the human development group, industrial development group and the economic group. Each ministerial group consists of several ministers that meet weekly to guarantee the effectiveness of the government’s performance. While these committees convene high‑level government officials, their mandate, functioning and frequency of meetings vary depending on the needs identified in the implementation of the vision and PARP. Complementing these mechanisms with technical working groups could be an avenue to support the operationalisation of strategic objectives and integrate outcomes into decision-making processes for a mainstream approach to policies and services across sectors and levels of government.
In an effort to enhance the efficiency of its public administration, the Government of Egypt has also made strides in modernising the civil service; however, certain rigidity persists. To be more agile and resilient, public services must learn to swiftly adapt to fast-changing circumstances and build skills in foresight and innovative problem solving (OECD, 2023[19]). The Civil Service Law (No. 81) of 2016 has been a key milestone in this regard, setting the foundation and structure of employment by designating job categories as well as the overall governance of civil service issues, and establishing a civil service council made up of elected official, senior civil servants and external experts (see Chapter 4 for further information). One of the key questions for the Egyptian administration is whether the principles enshrined in the Civil Service Law and the priorities foreseen for the updated version of the PARP (regarding recruitment and learning and development) take into consideration measures to address current and future trends. The public service of the future will need to attract, retain and develop talent that can respond quickly to fast-changing circumstances, in line with the disruptions introduced by ongoing global crises, changing demographics in the country, environmental risks and the effects of digitalisation. As will be further discussed in Chapter 4, prioritising learning, development and mobility among public sector employees is therefore crucial in cultivating an agile workforce capable of addressing complex problems and fostering innovation in the face of unpredictable future shocks and crises (OECD, 2023[8]).
Egypt is reforming service delivery as part of the PARP, where efforts would benefit from promoting a more responsive, evidence-based and citizen-centred approach
The delivery of policies and services plays a vital role in shaping the overall interface between the State and its citizens. According to the OECD Serving Citizens’ Framework (2022[20]), key factors of high-performing public services include their diversity of geographic location, proactive access to information, timeliness and relevance to the needs of different population groups. Indeed, effective public service delivery goes beyond ensuring compliance and involves engaging citizens in the design of its procedures. Designing and delivering services that are evidence-based, responsive and accessible for all is fundamental to building more inclusive, resilient and fair 21st century societies.
In Egypt, the Government continues to adopt and deepen relevant measures to enhance public service quality, access and relevance. Citizens can access a wide range of public services through online and offline delivery channels delivered by national public entities and authorities at the governorate level. Under the PARP, the mandate to ensure the effectiveness of public services lies with CAOA – in coordination with other relevant entities- and MCIT, leading efforts to enhance the provision of digital public services. While this system is thorough, the institutional framework for public service delivery in Egypt appears complex and fragmented (due to the existing division of labour), with responsibilities delegated to ministries and governorates according to specific sector needs and available resources and capacities. With pronounced income disparities at the local level, access to public services has also been reported to be uneven across governorates (UNDP, 2023[21]).
Public service delivery thus remains a priority area for reform. Building on progress to date, Egypt has achieved high scores in terms of the technical foundations (88.16%) for the delivery of vital services, in line with efforts undertaken through the PARP and the Digital Egypt strategy (Figure 1.5). Nevertheless, evidence also reveals that accessibility and inclusion (66.7%), public engagement (53%) and service experience (55.4%) could be areas for future reform to place citizens at the front and centre of the design and delivery of services in Egypt (Oxford Insights, 2022[22]). For instance, satisfaction with public services in Egypt showed mixed results in 2023, with low levels of satisfaction in health services (39%) and the education system (40%), whilst exhibiting a fluctuating performance in 2013 (both 30%), 2015 (43%; 52%), 2017 (36%; 34%) and 2020 (41%; 31%) (Gallup, 2023[23]). Nevertheless, Egypt remains a high performer in the region, with a share above the average satisfaction with health services (with an average in MENA of 36% in 2023) and equal to those of the education system (with an average in MENA of 40%) (Gallup, 2023[23]). These trends are consistent with findings from Chapter 5, regarding the complex multilevel delivery infrastructure in Egypt, which was found to introduce burdens for citizens in identifying the responsible entity, requested documents, requirements, cost and length of procedures.
Note: Scores for each area are provided from 0% to 100%.
Source: Oxford Insights (2022[22]), Human-Centred Public Services Index (2022).
The Government of Egypt is taking steps to modernise and streamline the existing public service delivery infrastructure to enhance the quality, access and relevance of public services. As part of the PARP, CAOA has dedicated a specific pillar to enhancing public service delivery in Egypt. To advance the implementation of this pillar, CAOA is undertaking efforts to establish an observatory for public services. Egypt’s strategic priorities, in particular those enshrined in the PARP, also underline the need for improvements in the quality of public services and the tracking of progress made over recent years. Egypt needs to have a comprehensive, available and systematically collected government data on public service satisfaction, it is developing surveys and other means to collect data and information on public services that could better inform service design and delivery and assess the levels of satisfaction on a regular basis (see Chapter 3).
The digital transformation of the Egyptian public sector has also ushered in a series of reforms to digitalise public services. Since 2012, efforts to build a robust digital infrastructure have paved the way for the digital transformation of the public sector and enhancements to public service delivery (see Chapter 5). Presently, Egypt stands in a promising position to become a digital forerunner in the MENA region (World Bank, 2020[24]). At the regional level, Egypt is also at the forefront of MENA economies on digital transformation and financial inclusion (UNDP, 2021[25]). Under the PARP umbrella, Digital Egypt is well positioned and de facto plays an important role in streamlining public service delivery through its digital transformation pillar, with a view to digitalising, simplifying and expediting. At the time of writing, the MCIT had digitalised over 168 public services from 9 ministries on 5 main outlets\channels: the Digital Egypt e-platform, mobile applications, call centres, post offices and citizen service centres. The digital transformation objective is also identified in Egypt Vision 2030 as a means to improve the functioning of the government, the delivery and inclusiveness of public services and the transparency of the public administration, ultimately aiming to increase citizens’ trust in the government (MPED, 2023[4]). In today’s fast-paced digital era, leveraging the digital transformation of the public sector in Egypt, however, should not be seen as a goal in itself but as a tool to enhance the interface between the state and the citizen.
Efforts in this regard have, at the same time, supported a gradual transformation of the Egyptian administration into a data-driven public sector. In line with 15 economies in the MENA region (OECD/UN ESCWA, 2021[26]), Egypt has a portal in place (https://egypt.opendataforafrica.org) that has contributed to improving its Open Data Inventory scores since 2015 (Figure 1.6). While progress has been achieved, there is room to further equip line ministries and governorates with the capabilities to collect, manage and share data, as well as ensure the interoperability of databases, as underlined in the pillars of action of the PARP. Efforts in this regard will benefit from enhanced co‑ordination to ensure the effective management and availability of data across sectors and levels of government.
Source: Open Data Watch (n.d.[27]), Open Data Inventory (ODIN), https://odin.opendatawatch.com.
Egypt Vision 2030 places a renewed emphasis on ensuring policy outcomes are fair, inclusive and responsive to the needs of different segments of the population
Egypt Vision 2030, as a whole-of-government umbrella framework for reforms in the country, acknowledges openness, inclusiveness and stakeholder participation as key drivers towards promoting sustainable development. Notably, it acknowledges how “by involving all stakeholders in the decision-making process at the national and local levels, within a legislative and institutional framework, transparency and accountability are enhanced, and rights and duties are defined, thereby reducing corruption and improving the services provided to citizens” (MPED, 2023[4]).
Nevertheless, various societal challenges complicate the outlook of reforms in Egypt. Demographic changes in recent years have introduced far-reaching economic, financial and social impacts in the country. The ongoing second demographic wave being experienced in Egypt and across the MENA region is exacerbating pre-existing pressures on education systems and labour markets (ME Council, 2022[28]). The number of young people is expected to increase to 5.5 million by 2030. Leveraging the demographic dividend in the country will be vital for the success of reforms, considering that Egypt has a relatively young population (representing 60% of the total population) and a large share is also female (UNICEF, 2020[29]).
In line with these trends, Egypt has an opportunity to further enhance its inclusiveness within the public sector regarding the representation of women in senior positions and youth in public administration and public life. As of 2020, Egyptian women held 45% of all government jobs (MPED, 2021[30]). While observations also point to an overall balanced representation of women and men, without detailed data, it is difficult to assess to which extent women and men are equally represented horizontally in all sectors and fields in public administration and vertically at the highest levels. Notwithstanding the recent efforts undertaken by the Government of Egypt to engage young people in the public sector, young people remain under-represented in Egyptian public institutions despite their demographic weight. For instance, in parliament, according to OECD interviews, only 60 elected members are under the age of 35 (10.6%), a percentage lower than the MENA average (OECD, 2022[31]). Chapter 7 will examine the opportunities to further empower women and young people to shape the civil service of the future and conceive more inclusive, relevant and effective policies, services and programmes.
With a growing and diverse population, Egypt must grapple with existing inequalities, introducing barriers for certain groups to take part in public life. Notably, the country has made great strides in reducing poverty, with an overall poverty rate of 29.7% as of 2019/20 (OECD, 2024[1]; APRM, 2021[2]). Nevertheless, as in many OECD countries, Egypt exhibits uneven levels of income inequality across municipalities and between rural and urban communities. The Human Development Index shows that Egypt’s Human Inequality Coefficient (22.1%), while below the average in the Arab region (23.7%), remains an important factor to be addressed (UNDP, 2024[32]). Such inequalities have particularly introduced risks for the socio-economic integration of refugees and other underrepresented groups. As of October 2024, the country hosted approximately 794,600 registered refugees and asylum-seekers from more than 59 countries, most of which live in urban areas of Cairo and the North Coast and amount to the largest number registered in its history (i.e. with 420,000 individuals in Egypt registered in 2023) (UNHCR, 2024[33]).
Addressing existing climate vulnerabilities in Egypt and their potential distributional effects will also be central to promoting sustainable and inclusive growth for all groups in society. A growing urban population (estimated to be 41.4 million by 2050) will put additional strain on urban-area service provision and deepen the exposure to climate risks, with effects disproportionately borne by the most vulnerable population (World Bank, 2022[34]). In fact, 14 major cities in Egypt, with over 80% of the total population, were found to be exposed to at least 1 major climate risk (World Bank, 2022[34]). Ensuring adequate governance mechanisms and policies to address climate change will be critical, considering the potential uncertainty regarding the availability of water resources in the country, increasing heatwaves and desertification affecting biodiversity, and threats to food security (OECD, 2024[35]).
Amongst other inequalities exposed by the COVID-19 pandemic, bridging the digital divide in Egypt has also been a priority high on the reform agenda through the Digital Egypt strategy. As the pandemic has accelerated online activity, the scope and speed of the ongoing digital transformation in Egypt has varied greatly across governorates and segments of the population, some of whom have yet to fully profit from it. Indeed, the digital divide is prevalent in Egypt, as acknowledged by Egypt Vision 2030. Figure 1.7 illustrates that while Egypt (57 out of 100) ranks above the MENA regional average (61 out of 100) in the Inclusive Internet Index, 28% of the total population is still not able to access the Internet (EIU, 2022[36]; ITU, 2023[37]). Evidence also reveals that Egypt has seen a significant improvement over the last decade in terms of building digital infrastructure in the country and raising digital access and literacy levels. The digital divide that persists across governorates in Egypt, however, not only constrains the ability of citizens to access online public services but also reinforces divisions by age, income and geographic location.
Source: ITU (2023[37]), Individuals Using the Internet (% of Population) - Egypt, Arab Rep., https://data.worldbank.org/indicator/IT.NET.USER.ZS?locations=EG.
These challenges together underline the importance of placing citizens at the front and centre of public policies and services for the success of reforms in Egypt. Embedding the principles of transparency, integrity, accountability and stakeholder participation in the work of government can enable public institutions to work better, deliver better services, demonstrate the legitimacy of government decisions and ultimately increase citizens’ trust (OECD, 2024[38]). Egypt faces challenges in this regard, as reflected in the worldwide governance Voice and Accountability Index2 where the country has lost ground over the last years (with a score of 0.15 in 2013 and -1.51 in 2021) (World Bank, 2021[5]). In line with existing trends in MENA economies, evidence also illustrates the difficulties in Egypt in engaging citizens in public and political life, with only 3% of the population (in comparison to an average of 9% in the MENA region) having voiced their opinion to a public official to enact change in existing policies (Gallup, 2023[23]). Egypt could, therefore, build on important steps taken to consult academics, experts and certain groups in the process of updating Egypt Vision 2030 and the PARP to move towards more meaningful opportunities for the participation of a wider variety of stakeholders in policymaking, as will be discussed in Chapter 6.
Egypt must navigate a complex macro-economic and fiscal environment to support stronger, inclusive and sustainable economic growth in the short, medium and long terms
The Egyptian economy has faced various external shocks in recent years, exacerbating macro-economic imbalances marked by a substantial current account deficit and mounting public debt (OECD, 2022[39]). Despite weathering the COVID-19 crisis well initially, ongoing global crisis have strained Egypt’s balance of payments, leading to record-high inflation exacerbated by currency depreciation. In response, Egypt embarked on macro-economic policy reforms under the International Monetary Fund (IMF) Extended Fund Facility, securing a USD 8 billion IMF agreement in March 2024. These reforms aim to make the exchange rate flexible, conduct prudent monetary policy, improve the budget balance and undertake structural reforms to boost foreign investor confidence. Restoring public finance sustainability remains a challenge, with public debt reaching 95.7% of gross domestic product in financial year 2022/23 (OECD, 2024[1]).The government is also extending its efforts to reduce administration costs. Amid rising spending pressures, there is a call for the government to rationalise expenditures, especially in large-scale infrastructure projects. The government is committed to conducting a comprehensive review of the effectiveness of public spending in areas such as social protection, health and education, as highlighted by the IMF in 2023.
At the same time, the Government of Egypt has undertaken measures to enhance its public financial management (PFM) systems to strengthen governance, improve resource utilisation and increase transparency. Led by the Ministry of Finance (MoF), the government has adopted the Public Financial Management Law (Law No. 6/2022) to achieve this objective, which outlines key aspects of the budget calendar, as well as procedures for developing and updating the medium-term budget framework. In February 2024, the executive regulations of the law were issued, providing the details for the implementation of key reforms, defining responsibilities inside and outside the MoF and setting controls for the governance of extra‑budgetary funds. Initiatives to boost transparency include plans to publish budget outturns and annual audit reports, along with compiling and publishing an annual report on payment arrears between the MoF and public entities. Additionally, efforts are underway to build capacity for managing fiscal risks. Notwithstanding the government’s commitment to meet fiscal objectives to maintain the sustainability of public finances, there is currently no legislated fiscal rule in Egypt which can provide clear guidance about the medium-term trajectory of public finances (OECD, 2024[1]).
The government is also actively working towards a more robust, inclusive and sustainable recovery by focusing on enhancing productivity and employment. The initiatives mentioned above are gradually being aligned with broader policy goals, notably reducing informality, creating higher-quality jobs and increasing employment rates for young people and women, in line with Egypt Vision 2030 (MPED, 2023[4]). Against this backdrop, consolidating existing public governance reforms will be essential to support these growth-enhancing priorities relating to the economy, with a view to promoting more inclusive growth and relevant policy outcomes for citizens.
The Government of Egypt has identified the aforementioned areas as priorities to drive future reforms and promote more inclusive growth and good governance. This Review therefore takes stock of progress achieved to date, explores the above areas in detail and provides policy advice and tailored recommendations to support the effective implementation of key public governance reforms in Egypt, including Egypt Vision 2030 and the PARP. In doing so, it analyses key drivers for their successful implementation and provides support in current challenge areas, including issues such as enhancing whole-of-government co‑ordination, strategic human resource management, access to information and public communication, administrative simplification, as well as gender and youth mainstreaming. Overall, the review process aims to support the government of Egypt in bringing reforms closer to OECD standards and benefit from good practices from OECD member and partner countries.
The structure of the review reflects the main pathways for reform, jointly identified with the Government of Egypt, to leverage their full potential in the short, mid and long terms. In doing so, Chapter 2 provides an overview of and recommendations for the current functional and institutional arrangements underpinning existing governance frameworks for the implementation of Egypt Vision 2030, spearheaded by MPEDIC. Chapter 3 explores recent developments regarding the public administration reform process in Egypt and identifies avenues to build on the key achievements led by CAOA through the PARP. Chapter 4 focuses on the state of civil service reform in Egypt and examines potential avenues to build a high-performing civil service through aligning recruitment, learning and development, human resource planning and performance management frameworks. Chapter 5 provides an overview of the administrative simplification landscape in Egypt and the important role of the MCIT and DTUs in streamlining public procedures prior to their digitalisation to reduce burdens and costs for government entities, businesses and citizens. Chapter 6 looks at existing transparency, communication and citizen participation mechanisms in Egypt as fundamental avenues to engage the public and deliver more relevant policies and services. Chapter 7 provides an overview of Egypt’s institutional and policy frameworks to mainstream a gender and youth lens across public governance reforms.
The Review comes at a timely moment for the Government of Egypt, as it stands at a critical juncture to deliver on its ambitious reforms by 2030 and beyond. The policy recommendations and analysis herein build on recent stocktaking exercises by the United Nations voluntary national review and the African Peer Review Mechanism, shedding light on key progress to date and areas for improvement. Overall, the review identifies that while this transformation will require a long, gradual process to change the way the public administration operates, key achievements to date provide a foundation for Egypt to unlock its potential in modernising its public sector to meet the needs and expectations of citizens.
Methodology
The Review is based on questionnaires developed by the OECD to understand the extent to which policies and reforms in Egypt have been implemented and backed by robust institutional, policy and regulatory frameworks. The questionnaires were shared with MPEDIC, CAOA, MCIT, the National Institute for Governance and Sustainable Development (NIGSD), Ministry of Youth and Sports (MoYS) and NCW respectively. Following the reception of questionnaire responses, the OECD conducted data collection workshops with relevant government partners to inform the review’s main findings and recommendations. The data collected underwent an extensive review, data cleaning and validation process, where the OECD engaged actively with government partners to clarify responses and facilitate the sharing of additional needed information. Meetings were also organised with main government partners to validate this report’s data, main findings and key policy recommendations. The publication is also based on extensive desk research complemented by interviews conducted with over 28 Egyptian stakeholders during multiple data collection activities (see Box 1.1 for a comprehensive list).
At the same time, the Review is informed by instruments and good practices from OECD member and partner countries and benefits from the experience of peers along the review process. The findings therein also reflect on exchanges with relevant government interlocutors to ensure the feasibility of recommendations in line with key reform priorities as part of Egypt Vision 2030 and the PARP. The report was discussed and reviewed by the OECD Public Governance Committee.
Throughout the course of this process, a wide variety of stakeholders were also engaged and consulted to ensure the relevance of policy recommendations for the whole of government in Egypt:
Central Agency for Organization and Administration (CAOA)
Ministry of Communications and Information Technology (MCIT)
Ministry of Planning, Economic Development and International Cooperation (MPEDIC)
Ministry of Finance (MoF)
Ministry of Youth and Sports (MoYS)
Ministry of Parliamentary Affairs
Ministry of Water Resources and Irrigation
Ministry of Civil Aviation
Ministry of Transportation
Ministry of Tourism and Antiquities
Ministry of Education and Technical Education
Ministry of Trade and Industry
Ministry of Endowments
Ministry of Housing, Utilities and Urban Communities
Ministry of Electricity and Renewable Energy
Ministry of International Cooperation
Ministry of Labour
Ministry of State for Emigration and Egyptian Expatriates Affairs
Ministry of Local Development
Ministry of Environment
Ministry of Health and Population
National Institute for Governance and Sustainable Development (NIGSD)
National Training Academy (NTA)
National Council for Childhood and Motherhood (NCCM)
Central Agency for Public Mobilization and Statistics (CAPMAS)
National Food Safety Authority (NFSA)
Egyptian Regulatory Reform and Development Activity (ERRADA)
American University in Cairo.
The review aims to support the identification, analysis and implementation of priority governance reforms in Egypt, under Egypt Vision 2030 and the PARP
The table below provides an overview of high-level policy recommendations, which will be further developed and detailed throughout each chapter.
Source: Based on the key findings and recommendations of the Review.
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← 1. Available online at https://www.cabinet.gov.eg/StaticContent/GovernmentProgram.
← 2. The Voice and Accountability Index captures the ability of a country’s citizens to elect their government, as well as freedom of expression, freedom of association and presence of independent media.