“The Reality and Future of Social Protection in Egypt” – A Study by the Egyptian Center on the Challenges and Solutions of Subsidy and Social Protection Policies.
In light of the Egyptian Parliament’s final approval of the Social Security and Cash Support Bill on January 14, 2025—pending ratification by the President—the Egyptian Center for Economic and Social Rights has released an in-depth study titled “The Reality and Future of Social Protection in Egypt : A Study on Challenges and Solutions”. Authored by economic researcher Elhamy Elmerghany, the study examines Egypt’s social protection landscape, offering a detailed analysis of the challenges and proposing actionable solutions.
This publication comes at a time when Egypt faces growing economic and social pressures. It provides an extensive review of in-kind and cash support systems, emphasizing their role in safeguarding the fundamental right to a decent standard of living. The study investigates the intersection of social protection policies and support mechanisms, focusing on their impact on vulnerable groups and the working class, alongside an analysis of the evolution of relevant legislation.
Relying on desk research and field study analysis, the study dissects key concepts related to social protection, social security, and support mechanisms, clarifying the distinctions between them. It also explores international frameworks such as the Universal Declaration of Human Rights, the International Covenant on Economic, Social, and Cultural Rights, and International Labour Organization conventions, all of which establish standards for social security rights.
Key Findings
The study traces the historical development of Egypt’s social protection and welfare policies, situating them within the current legal and economic context. It evaluates the effectiveness of existing programs and their impact on the poor and the working class.
Egypt is currently grappling with significant challenges: poverty affects over 35% of the population, while inflation soared to 40% in 2023 and remained at a high 30% in 2024. These economic pressures have left citizens struggling to afford basic goods and services as social protection budgets shrink. Inflation and rising food prices have further diminished the value of cash assistance, exacerbating poverty and hunger rates.
Despite these hardships, in-kind support programs, such as food ration cards, have played a vital role in alleviating poverty, reducing it by over 10%. However, the ongoing shift from in-kind to cash support poses risks to the effectiveness of these programs, particularly amid persistent inflation and price surges.
The study also highlights concerning statistics from the Ministry of Education’s 2021 survey, which revealed that 12.7 million Egyptian children suffer from malnutrition. Of these, 3.3 million are obese, 8.2 million have anemia, and 1.2 million experience stunted growth. These figures underscore the urgent need to improve in-kind programs, such as school meal initiatives, while recognizing the complications posed by transitioning to cash support in an inflationary environment.
Recommendations
The study presented a series of recommendations to enhance the effectiveness of social protection policies in Egypt. Key among these was the necessity to review and address the shortcomings in the draft Social Security and Cash Support Law before its approval, as some provisions added financial burdens on the poor instead of alleviating them. It also proposed exempting beneficiaries from fees associated with obtaining required certificates and official documents under the law or reimbursing them when eligible.
The study stressed the importance of preserving in-kind support programs, particularly bread subsidies, and improving distribution mechanisms to ensure they reach those in need, especially amid rising inflation. It also called for reassessing government spending priorities to enhance social protection programs and channel investments into agriculture and industry to bolster the national economy.
Furthermore, the study underscored the need to establish a comprehensive database to identify and geographically locate the poor, ensuring targeted support. It also recommended regularly updating food subsidy values in line with inflation and prioritizing investments in education and healthcare as fundamental pillars of human development and citizen welfare.
About the Researcher
Elhamy Mohamed Elmerghany is an accomplished economic researcher and administrative consultant with over 43 years of professional experience. Born in 1955, he graduated with a Bachelor’s degree in Business Administration from Cairo University in 1977.
Elmerghany began his career as a researcher at the Central Agency for Organization and Administration in 1979 and has since held senior roles in both public and private institutions. His expertise spans organizational restructuring, strategic planning, and feasibility studies across sectors, including his tenure at the Planning and Architectural Studies Center, the Saudi Environmental Projects Company (SEPCO), and the Sijini Center for Economic and Administrative Consultancy in Saudi Arabia.
Throughout his career, Elmerghany has conducted training sessions on corporate restructuring, productivity enhancement, and financial management. He has participated in numerous workshops and conferences and authored various studies and publications addressing economic and administrativec hallenges.
For the full study click here:
https://ecesr.org/wp-content/uploads/2025/01/واقع-ومستقبل-الحماية-الاجتماعية-وسياسات-الدعم-والضمان-الاجتماعي-في-مصر-1.pdf
