Tackling Youth Unemployment in Egypt

Nour El Wassimy

13.1 % (71million) 26% (2.9 million) 25% > ( 9.7 % men) (ILO, 2016)

Youth Unemployment

S

D>

1950s - 1960s subsidization of

education

1970s open door policy

1990sNeoliberal

economic reforms(ERSAP)

Labour Market

Supply : 1. Increased Supply of Unqualified Labor:

70% Hold Academic Degrees

“Educated Unemployment”

- Subsidization of Education- Lowering uni entry

requirements(Nasser, Sadat )

Quantity Quality

EducationOccupation Gap

Supply : 1. Increased Supply of Unqualified Labor

Solution:

Education System

Reformation

1. Upgrade Curriculums to Meet International

Standards

- Realign curriculums & teaching methodologies with int. certified benchmarks.

- Created & revised annually by Industry representatives. (ensuring relevance of knowledge and skills)

2. Decentralization of Education “Glocal

curriculums “

schooling system Operation Federal government governorate.

- Management of finc Resources- Accountablity - Localised curriculums

3. Subsidize Elementary

Middle School ONLY

4. Community & Service hours

1990s

- Merit based scholarships based on performance .

- Elementary to high school - Internships- Accumulated practical experience - Informed career choices

Align student capabilities with evolving business demands.

Supply : 2. Proliferation of The Shadow Economy:% of informal activities: = 40-60% = 1.2 - 1.5 T LE = 2/3 formal economy

Solution: E-Sharing Apps

- Diminishing online transactions barrier- Access to smartphones & internet is not class specific. * Mobile penetration over 100% * Internet penetration 40%

Electronic Payment Auto deductible

Income tax

Domestic worker

- Market Accessibility - Geographic vicinity - Protection of rights

Customer - Training (Quality)- Security check - Standard wage + bonus performance appraisal.

WIN WIN

Formalized Domestic informal

jobs

Integrate with SMS gateways

Mobile penetration Banking penetration45% of Kenya’s GDP

Is going through M-PESAFormalizing the economy.

Kenya

Demand: A Weak Infrastructure for Innovation & Entrepreneurship

Innovation is THE key instrumental factor leading to sustainable economic growth

Challenges:

Business Technical Anti tr

ust laws

Demand: A Weak Infrastructure for Innovation & Entrepreneurship

Solution: shift towards a knowledge-based economy.

National Innovation System

Links actors involved in the innovation process

Information system

Government policies & support systems

Financial systems

Support of industry

associations and NGOs

Education system

360 products annually

Ministry of InnovationEntrepreneurial ecosystem

- technology parks link: connect Ind. , Unis , Gov.

- Incubators: provide start-ups with:- Business advisory services, - Mentoring services- Access to funds, labs, resources etc.

10 incubators in Egypt functioning independently

Work under a single unit Unified vision strategic goals

Avoid duplicationof resources

Incentivize Innovation

- Intellectual property rights - Patent, antimonopoly, competition laws - R&D expenditure- Tax breaks to innovation related investments.

Focus research efforts &funds on developing local capital intensive industries with a comparative advantage.

1 2 3

Development Diffusion of tec.

Demand: A Weak Infrastructure for Innovation & Entrepreneurship

Solution: shift towards a knowledge-based economy.

Ease The Access to Diversified Fund Sources4

Non- Traditional Fund Sources venture capitals, crowd sourcing, angel investors

localized version

Innovators

Investors

Technical/ Business know how

Traditional Fund Sources

Share Profits & loss Offer mentorship

Lenders Active business partners

Invest in fintech start-upsCreate fintech incubators

-Remain competitive -Innovative customer oriented solutions

Conclusion:

Mexico

KenyaIndia

Thank You