The narrower the gender disparity in the economy, the higher the GDP. How much is needed to close the gap in Egypt?
The economic empowerment of women is one of the most fundamental components of gender equality and has a huge impact on any country’s economy. According to the latest estimate by the World Bank, GDP per capita would be almost 20% higher if all gender employment gaps were to be closed. The potential for better engaging women in the economy is immense; a McKinsey Global Institute report finds that $12 trillion could be added to global GDP by 2025 by advancing gender equality.
The Middle East and North Africa (MENA) region has one of the largest gender gaps in the world, with an estimated 142.4 years to close the gender gap if progress continues at the current pace, according to a report by the Arab Women’s Enterprise Fund’s (AWEF) report named “Gender- Smart Investing in MENA: An Egyptian perspective on strengthening investment strategies to empower women.” The report also states that regarding women’s economic participation and opportunity, the region is the second-lowest global performer, just ahead of South Asia.
“Only 3 in 10 women in the region participate in the labor force (31%). Yet, this figure hides regional disparities: In Egypt, less than 2 in 10 women (20%) participate in the labor force— among the lowest rate in the world—only 7.4% of managers in the country are women, and women’s income is, on average, only 22% that of a man,” the AWEF’s report stated.
Not only that, but in 2021, Egypt ranked 129th out of the 156 countries in the Global Gender Gap Index. It ranked 146th out of 156 countries in women’s economic participation and opportunity. Only 20% of Egypt’s working-age women participate in the economy, compared to 75% of men. According to World Bank data, women’s labor force participation stands at 15.4% compared to 67.1% for men.
Egypt’s efforts in women’s economic empowerment
The Egyptian government have recognized the indispensable role of women in driving economic progress and has implemented various initiatives to promote their participation in the workforce. One such initiative is the National Strategy for the Empowerment of Egyptian Women 2030, which aims to enhance women’s economic participation through targeted policies and programs. Additionally, the government has enacted legislation to ensure gender equality in the workplace and facilitate women’s access to education, training, and entrepreneurship opportunities.
One of the strategy’s pillars is women's economic empowerment to develop women’s capacities to enhance their employment options, expand their participation in the workforce, support their entrepreneurship, and realize equal opportunities for women’s employment in all sectors, including holding senior positions in both the public and private sectors.
The National Strategy for the Empowerment of Egyptian Women 2030 includes a comprehensive set of interventions aimed at promoting the economic empowerment of Egyptian women. In terms of developing investment policies, management systems, and financing, the strategy focuses on ensuring proper representation of women on boards of directors in the private sector. It also emphasizes attracting industries that generate job opportunities for women within their value chains.
The strategy encourages women to establish their businesses and aims to expand business development services tailored to women’s needs. Additionally, it promotes the establishment of economic activity cooperatives targeting women and provides financial services to support initiatives such as group savings and loans. Efforts are made to develop banking and non-banking financial services specifically targeting women, including facilitating access through electronic channels. The strategy also includes policies to enhance the share of products from female-owned small enterprises and cooperatives in public purchasing and procurement.
To protect the rights of working women and provide support services, the strategy emphasizes the enforcement of laws that safeguard their rights, particularly regarding working hours, maternity leave, and equal wages. It calls for measures to ensure compliance with human resources policies that incorporate gender equality aspects in various work-related processes. Support services for working women are also highlighted, such as childcare services, breastfeeding breaks, and protection against workplace harassment.
Recognizing the importance of women’s work in the household and informal sector, the strategy aims to issue laws and policies that safeguard the rights of women working in the informal sector. That is done by conducting studies that acknowledge the economic contribution of women’s unpaid household work and promoting a culture of respect for this type of work. The strategy suggests implementing flextime and work-from-home systems to allow women to balance their careers and family roles.
It also aims to protect the rights of domestic workers and formalize their employment status. In terms of training and skills enhancement, the strategy focuses on expanding digital technology programs for women, integrating them into vocational training, and providing them with various types of technical education that come in line with the needs of the Egyptian job market. It also aims to offer training opportunities for women with lower levels of education to qualify them for employment.
Further efforts are made to ensure women’s access to information and communication technology and to develop mechanisms promoting their financial inclusion and access to various financial services.
Lastly, the strategy aims to promote women’s engagement in the agricultural sector by expanding projects that facilitate their employment in various value chains of agricultural production. It seeks to provide funding sources to enhance the presence of working women in the agricultural sector as well as training programs to improve productivity and create market opportunities.
Is this enough?
While Egypt has been making strides toward the economic empowerment of women and establishing the right environment for them to succeed and participate in the economy, more should still be done.
“Though thought to be insufficient, great efforts have been made by the government to economically empower women. Economic empowerment must be preceded by social rehabilitation, which includes education and awareness,” Member of the Egyptian Senate and Head of the Parliamentary Body of the Egyptian Social Democratic Party, Mahmoud Samy, tells Business Today.
“Unfortunately, not enough is being done to encourage girls to continue their education, especially in Lower Egypt and Upper Egypt. Some girls opt for studying for a diploma which is not as demanded by the job market as a university degree. Therefore, women are not well represented in the labor market and all the economic empowerment programs have to focus on small and medium enterprises as a result,” Samy adds.
“Economic empowerment will not be achieved unless women get a good university education. Large awareness campaigns must be carried out in governorates to encourage girls to complete their university studies and not resort to early marriage because it negatively affects their opportunities in the labor market,” Sami added.
To face these challenges, a comprehensive approach is required, encompassing policy reforms, institutional capacity-building, and social awareness campaigns. The government needs to prioritize the enforcement of existing laws and policies, strengthen support mechanisms for women entrepreneurs, and invest in education and skills development to equip women with the tools needed to succeed in the modern economy.
