Context

Although Egypt has made significant progress in recent years, it has, however, experienced a marked economic slowdown since 2022, due to the intensification of the Russia-Ukraine war and restrictive monetary policy measures, and the country continues to face major structural challenges. The main challenges include significant demographic pressure, high levels of unemployment – particularly among young people and women – in addition to rising inflation and public debt. Furthermore, significant socio-economic and regional inequalities persist, evident in the differing levels of development and access to opportunities between urban and rural areas. Social indicators point to a particularly precarious situation: according to the latest World Bank figures, around 33.5% of the population lives below the national poverty line, a rising figure that reflects structural difficulties in accessing sufficient incomes and essential services.

Against this backdrop, Egypt is one of the 23 priority countries in Africa for the activities of the Italian Development Cooperation and the Piano Mattei. The areas of intervention, identified in line with the priorities of the EU-Egypt Partnership for the period 2021–2027 and the Egyptian Government’s “Egypt Vision 2030” development strategy, include agriculture, environmental protection, private sector development, social development, the management of migration flows, the promotion of gender equality, and the promotion of the cultural heritage.

The Italian Development Cooperation in Egypt operates through grants and subsidised loans. Grant funding is disbursed through bilateral channels (grants to local authorities and institutions) and multilateral channels (grants to international organisations and United Nations agencies). Numerous initiatives are also funded through the Italian-Egyptian Debt Swap Programme.

Furthermore, AICS Cairo directly manages projects funded by the European Commission, and in 2025 the Office managed a total of eight delegated cooperation programmes, while continuing to develop new initiatives in cooperation with the European Delegation in Egypt.