Curious about who is funding Egypt these days? American military aid gets all the press, but many have contributed to support Egypt’s economy. Daily News Egypt recently provided a detailed breakdown. Except for deposits made to the central bank, I have not listed loan agreements. In some cases it is not clear if the money has been received already or only pledged. For ease of access, here is a simplified list:
United Arab Emirates
- $10.125 billion in grants, deposits, fuel shipments, and water and micro-enterprise projects
- $6.3 billion in grants, deposits, fuel shipments, and petroleum and electricity projects
- $4 billion in grants, deposits, and fuel shipments
- $934.4 million in electricity, economic, and transportation projects
Arab Fund for Economic and Social Development
- $412 million in energy projects
Joint European Aid
- $260.7 million in clean water projects
- $236.2 million in educational, economic, and various regional projects
- $137.2 million in micro-enterprise projects
- $78.5 million in agricultural projects
- $24.4 million in economic projects
African Development Bank
- $2 million in waste management and micro-enterprise projects
- $7.5 billion demanded to be returned from assistance given under the Morsi administration
I suppose there is a fair question: How can anyone in Egypt still be poor?
One reply on “Economic Aid to Egypt”
A few points to make in response to your question:
– Think of all the capital that flowed out of Egypt during 2011 and subsequent years. My guess is it would exceed this aid.
– The Egyptian economy is not generating enough income to pay the bills.
– Egypt’s petroleum ministry was already heavily indebted to foreign oil companies (about $4-5B as I recall). The current aid just postpones having to repay those debts.
– Having the army so involved in the economy stunts the economic growth of the commercial sector. It keeps economic benefits within the state rather than spreading them throughout the commercial sector and labour market.