Ah, Egypt; the land of the mummies and pyramids as most people know it. Egypt is a very special country for keeping a history that is thousands of years old very much alive in cohesion with its modern perks to keep up with the global sphere. Whilst it is a tourism hub filled with endless opportunities and experiences, Egypt does have some nasty problems creating a prominent ruckus that can’t be ignored. In this SWOT analysis of Egypt as a whole, let’s discuss what makes her exemplary and what makes it shabby; don’t neglect to also check out our PESTLE analysis of Egypt.
Egypt is expected to improve her economy constantly for a variety of reasons. The Zohr field discovered in 2015 is an excellent source for the production of liquefied natural gas (LNG) in Egypt which obviously brings them bags of money. They also earn a lot from their tourism programs. The recent discoveries made in the Gulf of Suez are also expected to be beneficial for the country especially in terms of foreign investments.
It is no secret that Egypt is on the bucket list of countries of people who love to explore different places especially ones with a plethora of history. The best part is that Egypt has something in store for everyone; whether you’re a history geek or you want a relaxing vacation on the beach, whether you want to explore the vast deserts or you want to soak in the marvels of amazing architecture, Egypt is the place for you.
Some of the amazing sites include the infamous Pyramids of Giza, the grand river Nile, Luxor’s Karnak Temple, Abu Simbel, the White Desert, and much more!
This is why tourism usually is the top contributor to the country’s GDP. In fact the fiscal year 2018-2019 was the best for the tourism sector in Egypt because the revenue earned reached an all-time high of $12.6 billion!
The climate of the country truly is perfect because it doesn’t limit anyone from visiting as is the case with most temperate nations. Whether it’s hot or cold, Egypt will have something to offer.
In February of 2018, the Egyptian Army announced and started a campaign in the Sinai Province against ISIS. In fact, military operations in Sinai have been the norm for the past 7 years and they continue to bring problems to this day. The area is war-stricken with multiple accounts of civilians being hurt as collateral damage.
These conflicts have raised a hell of a number of adversities for the local population, such as the isolation of North Sinai from the rest of the mainland by the Army. This move naturally led to a shortage of food and other resources. Some areas also face the loss of electricity and telecommunication services.
As is the case with many developing countries, Egypt still faces imminent threats of discrimination against marginalized groups such as women and LGBT people. The women and girls are often subjected to sexual and otherwise violence on the regular.
People belonging to the LGBT group are constantly targeted and persecuted for their gender identities or sexual preferences.
People who belong to other religions especially Christianity have been subjected to discrimination. Egypt has failed to protect their rights on many occasions.
The pandemic has affected us globally in every way possible. Forecasts suggest that Egypt will lose 3.1% of its economic growth next year because of covid-19. Egypt earns a lot from tourism, gas fields as well as the remittances sent by Egyptian workers living in other countries, all three of which have been severely impacted by the outbreak.
The impact of Covid became prominent in March of 2020 in Egypt. The pandemic resulted in the loss of many jobs in a number of industries, the most prominent being retail and wholesale, manufacturing, tourism, transport, and construction.
The Covid-19 pandemic has also severely impacted banks in Egypt. Banks that benefit directly from tourism activities, aviation, and trade are the ones that have suffered the most because all of these sectors have seen bad times. Banks that cater to small businesses are also under dire effects because of the pandemic.
Rapidly growing population
The population continues to grow in Egypt at an exponential rate. Where on one hand this growth will bring with it a surge of issues, if utilized properly Egypt can benefit a lot. The more amounts of people contributing towards the growing economy of the country, the better. Of course, the private sector has to be further developed and increased to make use of this opportunity of a huge working class.
Modernization of the economy
As Egypt moves forward it is vital for them to work on improving the hang-ups in their economic sphere. The trick is to utilize their resources as efficiently as possible at lower costs. Right now they use energy subsidies as a norm. What happens as a consequence is that investors pile their money in industries which consume a lot of fuel because of the low prices hence more energy is consumed or rather wasted.
Terrorism has been an age-old problem in the country and it still continues to haunt the people today. Not only is it extremely detrimental to the population of Egypt, but it also puts a bad impression on the country for potential investors and tourists.
Terrorist attacks have taken place on tourist destinations, restaurants, government offices, malls and businesses amongst other sites in Egypt.
Covid-19 has caused a lot of problems for Egypt, one of them being a sudden financial decline. As a part of their agreement made with the IMF, Egypt was to improve her economic state and she did quite well actually over the past few years. It was one of the fastest-growing economies working with the IMF right until the pandemic hit us. If strong measures aren’t taken, Egypt has a lot to lose after gaining it with such difficulty.
Egypt SWOT Analysis: Bottom Line
Egypt is a very interesting country trying to create a balance between the past and modern times. With her rich history, amazing tourist destinations, and hospitable people, the country has a decent present and hope for a brighter future.
However very serious threats continue to loom over it to date, especially terrorism and if these threats are not eradicated anytime soon, they are going to cause much harm. Luckily they do have a few opportunities up for grabs to improve the state of their land for the locals as well as potential tourists and business investors.