PESTLE Analysis of Egypt. The Arab Republic of Egypt is a transcontinental country ranging from Southwest of Asia and the Sinai Peninsula to the Northeast Corner of Africa. Egypt is the 14th most populous country in the world; and 3rd most populous country in Africa; the capital of the country is Cairo.
However, Egypt shares the border with the following countries;
- Libya to the west
- Sudan to the south
- Red Sea to the east
- Israel to the northeast
- Gaza Strip of Palestine
- Mediterranean Sea to the north
- Northeast separates the country from Saudi Arabia and Jordan
Key statistical facts and figures about Egypt are as follows;
- The nominal GDP of the country is 378.11 billion US dollars
- Nominal per-capital earning of the country was 3644 dollars
- The total area of the country is 390,121 square miles
Some of the main exports of Egypt are as follows;
- Livestock and fats
- Agriculture products
- Chemical products
- Mineral products
- Food items
- Base metals
Some of the main imports of Egypt are as follows;
- Mineral fuel
- Knit apparel
- Woven apparel
- Textile covering and carpets
- Art and antiques
- Fruits and vegetables
- Essential oils
- Vegetable and fruit juices
Today, we’ll discuss the PESTLE analysis of Egypt. It is going to focus on the macro-external factors like political, economic, social, technological, legal, and environmental factors impacting the country. Here’s the PESTLE analysis of Egypt as follows;
Political Factors Impacting Egypt
Some of the main political factors in the PESTLE analysis of Egypt are as follows;
A politically stable environment plays a significant role in the growth and development of a country. But Egypt has been facing political instability for the past few years, and they’re in the form of uprising and protest for changing and overthrowing the government. The political unrest results in the form of violence and jeopardizes the economy of the country.
One of the key elements of Egyptian politics is the country’s foreign policy. The country has established very friendly and fruitful relationships with the United States, and Egypt receives military and economic support in return.
The military plays a significant role in Egyptian politics, and it explains the long dictatorial regime in history. In fact, the military interferes with the internal politics of the country. For instance, it helped the mob overthrow the government of Hosni Mubarak in 2011, and the rise of the fundamental party Muslim Brotherhood.
Economical Factors Affecting Egypt
Some of the main economic factors in the PESTLE analysis of Egypt are as follows;
Egypt is facing the highest inflation ever and it has significantly increased the prices of goods and services. It has decreased the purchasing power of people of its citizens. According to an estimate, the inflation in Egypt has reached 40%, which is the highest ever.
A higher inflation rate would lead to political unrest, and it would turn off the mood of foreign investors. It is because investors want to invest in a politically stable country. In fact, the country needs foreign investment for developmental projects and creating job opportunities for the locals.
Agriculture plays a significant role in the country’s economy, and it contributes approximately 11.3% of the country’s GDP. Nile River plays a key role in the agriculture sector because it provides water for farming and irrigation.
Social Factors Impacting Egypt
Some of the main social factors in the PESTLE analysis of Egypt are as follows;
Higher literacy rates and education levels are the building blocks of any developed country. The Egyptian government has taken various steps to improve the education system and provide free primary education across the country. Limited resources, outdated curriculum, and overwhelming classrooms are the main challenges to the country.
Gender inequality, gender discrimination, and gender-based violence are some of the main challenges that are impacting the country’s growth and reputation. Many Egyptian women face challenges in terms of political representation, employment opportunities, and access the higher education. The government has taken various steps to deal with the gender discrimination issue like protecting women’s rights and making sure women participate in politics and the economy.
Technological Factors Affecting Egypt
Some of the main technological factors in the PESTLE analysis of Egypt are as follows;
Egypt is investing a lot of resources in renewable energy sources like wind power and solar energy. The objective of the country is to shift it from fossil fuels to clean energy, and it helps the country deal with the energy crisis issues.
The trend of e-commerce and online stores is growing significantly in Egypt, and the public has shown a great interest in e-commerce platforms. One of the main hurdles in the growth of e-commerce platforms in the country is the limited digital payment options and secure payment systems.
Legal Factors Impacting Egypt
Some of the main legal factors in the PESTLE analysis of Egypt are as follows;
Mixed Legal System
The legal system of Egypt is the mixture of modern statutes, Napoleonic codes, and civil law derived from the Islamic sharia law. The legal system of the country has three main areas; police, prosecution, and judiciary.
Intellectual property rights are the main issues and problems in the legal system of the country. Egypt has received a lot of criticism for not enforcing the IPR, and they have negatively impacted the economic and innovation growth of the country.
Environmental Factors Affecting Egypt
Some of the main environmental factors in the PESTLE analysis of Egypt are as follows;
The Egyptian landscape comprises desertification and it has impacted the country in terms of decreasing agriculture productivity, low biodiversity, and soil degradation. Human activities like improper usage of the landscape, deforestation, and overgrazing have amplified desertification and water scarcity.
Air pollution is one of the main environmental factors that have greatly impacted Egypt. Cairo has got the highest level of air pollution and it results in the form of health problems and respiratory issues.
Conclusion: Egypt PESTLE Analysis
After an in-depth study of the PESTLE analysis of Egypt; we have realized that Egypt is the world’s oldest civilization with a rich history and beautiful historical places. If you are learning about Egypt, then you should keep in mind the abovementioned macro-external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.