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Geography

Located in the north-east part of the African continent, Egypt has a land area of almost 1 million km2 . Only 6 per cent of the land is inhabited. Egypt's borders include the Mediterranean Sea and the Red Sea . The country occupies a vast desert plateau that is interrupted by the Nile Valley and Delta. It has a typical desert climate, with hot, dry summers and moderate winters. The Nile River is its only perennial water source. Other natural fresh water resources are extremely limited. Egypt is subject to such natural hazards as drought, earthquakes, dust storms, sandstorms and driving windstorms called khamsin, all of which affect agriculture. In 2003, the population was about 7.0 million and was growing at an annual rate of approximately 2 per cent. Population growth and increasing urbanization overtax resources already threatened by desertification and soil and water pollution.

Agriculture

Agriculture is of major importance to the country's economy. The sector employs about 30 per cent of the labour force and accounts for some 17 per cent of gross domestic product (GDP). Agricultural activities are concentrated in the Nile Valley and Delta and their desert fringes – the oldlands – which make up only 3 per cent of the total land area. In the Nile Valley soils are fertile, the climate allows for a year-round growing season, and water is available for irrigation throughout the year. Given such favourable conditions, yields in the oldlands are among the highest in the world for several cereal and horticultural corps. Despite this, Egypt remains a food-deficit country.

Economy

Egypt's economy, propelled by structural reforms over the last two decades or so, is showing signs of moving towards permanent sustainable growth. GDP per capita almost doubled between 1994 and 2003, rising from US$720 to US$1,390. But beginning in 2000 economic growth slowed. Only recently have new macroeconomic and social development policies been introduced. The increase in the population and the need to provide additional services in health care and education continue to put a major strain on government resources.

Creating employment for the rapidly expanding labour force is a major difficulty. Traditional employment opportunities in the government and public sectors are decreasing, and most of Egypt's unemployed are the young and educated. The country looks to the private sector as a key agent in creating jobs.

Source: IFAD