The Arab Republic of Egypt (Egypt) has been implementing an important economic reform program, which has resulted in improved macroeconomic conditions. The reforms, which have led to economic growth, reductions in inflation, and an improved climate for the private sector and competitiveness, have been supported by the international donor community, including through the

World Bank Programmatic Development Policy Financing and the International Monetary Fund’s (IMF) three-year Extended Fund Facility. Before the coronavirus (COVID-19) outbreak in late 2019, economic growth was robust and macroeconomic imbalances had broadly improved. Growth was 5.6 percent in 2019 (up from 5.3 percent in the previous year), inflation was curbed to return to single digits, and the debt-to-GDP ratio was brought to below the 100 percent mark.

The environmental conditions, however, remain challenging, particularly in Greater Cairo (GC).1 The main environmental challenges in GC are air and water pollution, as elaborated in Egypt – Cost of Environmental Degradation (COED) study (2019).2 Air pollution affects human health significantly leading to respiratory and cardiovascular diseases, morbidities and premature mortalities. The study has estimated that the economic cost of these health effects in GC alone at about 1.4 percent of the national Gross Domestic Product (GDP), annually.3

Ambient air pollution is the most significant environmental health issue in GC, and despite recent improvements, it still weighs heavily on the quality of life of its residents and the economy.

 Climate change will further exacerbate breathing conditions by creating more “natural dust” in GC. Climate change will contribute to more favorable conditions for self-incineration and the spread of solid waste fires.