Egypt: Similarities and lessons for Kenya

Despite undergoing shaky periods in its history, the country has positioned itself as a powerhouse in the region.

Egypt, does, however, have some similarities with Kenya and provides key lessons as well.

After gaining independence from Great Britain in 1922, Egypt has had its fair share of ups and downs.

From the 2011 uprising to the uncertainty caused by the Muslim Brotherhood, this North African nation has established itself as a key player in the continent.

With a GDP of $475 billion, Egypt is ranked the second largest economy in Africa according to Trading Economics.

Its focus on infrastructure development as well as Investments in transportation, energy, telecommunications and banking have been key drivers of its economic growth.

Egypt's largest private bank CIB ventured into the Kenyan market last year. Kenyan lenders KCB and Equity Group have equally made forays in other African markets.

"The Kenyan market is one of the most advanced digitally, on the continent. We have seen the use of clouds. For us being in Kenya is a learning experience in a lot of ways and digitally it is the perfect way to grow with more controlled investments and be in a larger footprint quickly", asserts Hussein Abaza, who is the current CEO of Commercial International Bank CIB.

Tourism is perhaps one of the most significant contributors to Egypt's economy, attracting millions of visitors to experience the pyramids and temples.

The Nile River is also a key feature. Tourism revenues rose 27% in 2023 to hit 13.6 billion US dollars. In Kenya, tourism is listed as the third largest foreign exchange earner after tea and coffee.

Hany Shahat has worked as a tour guide in Egypt for over a decade. " I have worked with many visitors, Germans, Romanians, you name it. I mean we receive tourists from all over the world. Egypt is considered to be the most loved attraction from all over the world"' he says.

Even though the majority of Egypt's landscape is a desert, the country has a vibrant agricultural sector. So much so that it launched a commodities exchange two years ago to protect small Egyptian farmers and producers.

"We are targeting to be the number one mercantile exchange in our region, the pace of development here is high. So we are looking forward to an increasing number of traded products on our platform. Every single country is required to leverage its trade platform, and one of the ways is to have the right components and right parameters, one of the major components is to have a commodities exchange", notes Ibrahim Ashmawy, Deputy Minister of Internal Trade, Egypt.

On its part, Kenya plans to establish an agricultural produce exchange dubbed Kenya National Multi Commodities Exchange this year, in a bid to streamline trading systems.

Egypt's embrace of technological innovation is also a key factor driving its growth. The country has developed Smart Village, a business hub that fosters growth and sustainability in all industries of corporate Egypt. Kenya has a similar concept at Konza Technopolis.

As Kenya charts its path towards economic prosperity, the lessons learned from Egypt's journey serve as a valuable roadmap for its success.