FY2023 MOFA ODA Evaluation Results
Evaluation of Japan’s ODA to the Arab Republic of Egypt
| Chief Evaluator | INADA Juichi Professor of Political Economy, School of Economics, Senshu University |
| Advisor | KUMON Yasuyuki Visiting Researcher, Institute for International Monetary Affairs |
| Consultant | Waseda University |
| Evaluation Period | FY2018 - FY2022 |
| Period of the Evaluation Study | June 2023 - February 2024 |
| Field Survey Country | Egypt |
Background, Objectives, and Scope of the Evaluation
Egypt is home to the Suez Canal, which occupies a crucial position in international maritime trade. Located at a geopolitical strategic point between Asia, Africa, and Europe, Egypt plays an important political and economic role for the peace and security of the entire Middle East and Africa region. Therefore, because Japan values foreign trade and energy security, Egypt is an extremely important partner.
Based on a review of Japan’s Official Development Assistance (ODA) policies and the assistance provided thereunder to Egypt in the period FY2018–2022, this evaluation aims to discuss recommendations and lessons learned for the formulation and implementation of Japan’s future ODA policy toward Egypt as well as to ensure public accountability.
Summary of Evaluation Results
● Development Viewpoints
(1) Relevance of Policies
Verification Item 1: Consistency with Japan’s High-Level Development Policies
Japan’s assistance policy toward the Arab Republic of Egypt has fundamentally been to support the building of a foundation for sustainable national development. The priority areas of assistance in the Country Assistance Program for the Arab Republic of Egypt (2008) (realization of sustainable growth and employment creation, poverty reduction and improvement of living standard, and promotion of regional stabilization) and in the Country Development Cooperation Policy for the Arab Republic of Egypt (2020) (promoting sustainable economic growth, social inclusion, education and human resource development, and regional cooperation) are both consistent with this basic policy.
Verification Item 2: Consistency with Egypt’s Development Policy and Needs
Japan’s assistance policy toward Egypt is consistent with the medium- and long-term goals and priority policies set forth in the Sustainable Development Strategy: Egypt Vision 2030 (SDS2030), namely, the three main pillars of the environment, economy, and society. At the same time, cooperation with and support to the private sector, trade, and governance are relatively low. The main goal of Japan’s assistance is to support the building of a foundation for sustainable national development. This goal is in line with the development needs of the Egyptian side, in particular, the need to promote economic growth.
Verification Item 3: Consistency with International Priority Issues and Relationship with Assistance from Other Donors
SDS2030 corresponds to the Sustainable Development Goals (SDGs) and can be recognized as consistent with international development goals. Implementing agencies are working with the Ministry of Planning and Economic Development to formulate and monitor SDS2030 to identify and respond to policy needs. Japan has participated in donor meetings and similar forums in Egypt through the Economic Cooperation Section of the Embassy of Japan in Egypt, the JICA Egypt office, and the Japan Bank for International Cooperation (JBIC) Dubai office, and it is also working with the Organisation for Economic Cooperation and Development (OECD) member countries and some Middle East donor agencies.
Verification Item 4: Japan’s Comparative Advantages
Japan’s comparative advantage in equipment is losing its effectiveness because of the advance of emerging countries. The operational method needs to be improved to ensure smooth implementation of the Special Terms for Economic Partnership (STEP), under which Japan provides technology in which it has a competitive edge through ODA loans. However, in the education field, Japan’s comparative advantage is being demonstrated by its unique support—including the Egypt-Japan Education Partnership (EJEP), which is highly appreciated in Egypt.
(Evaluation Result: Satisfactory)
(2) Effectiveness of Results
Verification Item 1: Achievements of Japanese Assistance in Priority Areas (Inputs)
Japan’s assistance has made a significant contribution to Egypt in terms of the amount of aid provided.
Verification Item 2: Achievement and Contribution from Japan’s ODA for Each Development Issue (Outputs)
While progress has been made on each development issue and some outputs are becoming visible, delays have occurred because of factors such as COVID-19, and efficiency and sustainability remain as challenges in some areas.
Verification Item 3: Effectiveness of Assistance in Priority Areas (Outcome/Impacts)
Although some effects have been observed, outcomes/impacts cannot be confirmed because most projects are still ongoing.
(Evaluation Result: Partially Satisfactory)
(3) Appropriateness of Processes
Verification Item 1: Appropriateness of the Formulation Process of the Country Development Cooperation Policy for Egypt
Japan’s ODA policy toward Egypt was generally developed through an appropriate process.
Verification Item 2: Appropriateness of the Implementation Process of Japan’s ODA to Egypt
The implementation process of Japan’s ODA to Egypt which consisted of developing and operating a basic implementation system; identifying needs; and implementing individual projects based on Japan’s priority areas of assistance to Egypt, monitoring and evaluation, and publicity, was appropriate.
Verification Item 3: Coordination/Collaboration in the Elaboration Process of the Country Development Cooperation Policy to Egypt
Appropriate coordination and collaboration were in place with other development related actors.
(Evaluation Result: Satisfactory)
*Ratings: Highly Satisfactory; Satisfactory; Partially Satisfactory; Unsatisfactory
● Diplomatic Viewpoints
(1) Diplomatic Importance
Egypt’s geopolitical importance to the international community is significant. Located in the northeastern part of the African continent, the country is at a strategic point connecting countries in Africa, the Middle East, and Europe. Additionally, Egypt was the first country to sign a peace treaty between an Arab country and Israel after several wars, so it plays an important role in the Middle East peace process. Moreover, because it is surrounded by unstable countries and regions, Egypt’s stability is crucial to regional stability.
(2) Diplomatic Impact
Although Japan’s ODA policies and the assistance provided thereunder to Egypt in the period FY2018–2022 had a certain degree of success in strengthening exchanges between the Egyptian and Japanese governments at the summit level, enhancing Japan’s presence in Egypt, and promoting friendly relations, some issues remain regarding strengthening economic relations between the two countries and expanding Japanese private companies into Egypt.
Recommendations Based on Evaluation Results
(1) Provide continuous support to the areas of Japan’s comparative advantage
(2) Devise ways of disclosing information
(3) Scrutinize debt sustainability to avoid fueling foreign currency shortages
(4) Create an environment for Japanese companies to enter the Egyptian market through all-Japan support, including Other Official Flows (OOF)
(5) Enhance operational flexibility so that the Special Terms for Economic Partnership (STEP) condition of ODA loans is easy to use for Japanese companies and their counterparts
Grand Egyptian Museum (GEM) Entrance