Every year, approximately 1.3 million young Egyptians enter the labor market, yet only about half a million jobs are created, leaving a significant gap in employment opportunities. Addressing this imbalance could have a transformative impact on Egypt’s economy, with full youth employment potentially increasing GDP by 36 percent and closing the gender employment gap raising it by an estimated 68 percent. The private sector, which generates around 75 percent of GDP and employs over 80 percent of the workforce, is a natural engine for job creation, but its potential is constrained by structural barriers including limited access to finance, the prominence of state-owned enterprises, trade barriers, and logistical challenges.
Egypt’s government is pursuing a new economic development agenda that emphasizes sustainable growth through robust institutions, effective regulation, macroeconomic stability, and an inclusive environment for women and youth. If fully realized, these measures could enable annual economic growth of more than 6 percent between 2026 and 2050, generating as many as 2.3 million jobs each year. Key initiatives to empower businesses include easing access to finance, streamlining regulations, improving access to land and labor, and promoting transparency to strengthen the investment climate and unlock private-sector-led employment. Programs like Digital Egypt are facilitating business registration, e-signatures, and e-payments, while customs modernization is reducing cargo release times.
The World Bank Group is supporting Egypt in translating reforms into tangible opportunities through projects like the Catalyzing Entrepreneurship for Job Creation Project. This initiative provides financial support, mentorship, training, and market access to small and growing businesses, having already created over 400,000 jobs and supported more than 200,000 beneficiaries, including a significant proportion of women and youth. Local programs in Upper Egypt have helped more than 79,000 businesses access new markets and modernize operations, resulting in around 9,000 new jobs and expanding opportunities for women in traditional industries like textiles.
Private-sector investments are also driving inclusive growth and job creation. IFC’s investments in companies like Kazyon, Egypt’s largest discount grocery chain, are supporting regional expansion, new store openings, and distribution centers that are projected to generate up to 30,000 jobs over five years. These investments strengthen local supply chains and integrate women into recruitment and promotion processes, demonstrating how private capital can translate into quality, sustainable employment.
Looking ahead, Egypt aims to create higher-value jobs in non-oil manufacturing, renewable energy, information technology, healthcare, and tourism. Strategies such as the Industrial Development and Trade Enhancement Strategy and the Foreign Direct Investment Strategy provide roadmaps to boost manufacturing, exports, and employment in high-value sectors. Investments in these areas are designed to diversify the economy, improve job quality, and extend opportunities beyond traditional urban centers into governorates across the country.
Creating more and better jobs is widely recognized as both Egypt’s most pressing challenge and greatest opportunity for future growth. Sustained reforms, dynamic private sector engagement, and continued support from international partners like the World Bank and IFC are critical to translating this potential into inclusive, sustainable economic growth, ensuring that more Egyptians, particularly youth and women, benefit from expanding employment opportunities.
