Supporting the Ministry of Local Development in the Fields of Decentralization and Integrated Local Development with Emphasis on Upper Egypt Project

Ministry of Local Development, Fayoum Governorate, European Union, and UNDP in Egypt Lay Foundation Stone for Local Economic Development Project in Fayoum

April 28, 2024

Fayoum, Tuesday, 5 March 2024 – As part of the ongoing efforts to advance integrated local development and decentralization in Egypt, H.E. Major General Hisham Amna, Minister of Local Development, alongside Dr. Ahmed El Ansary, Governor of Fayoum, Ms. Sophie Vanhaverbeke, Head of Cooperation at the EU Delegation to Egypt, and Mr. Sylvain Merlen, UNDP Deputy Resident Representative in Egypt, embarked on a field visit to Fayoum, a pivotal governorate within the joint project titled 'Supporting the Ministry of Local Development in Integrated Local Development and Decentralization with Special Emphasis on Upper Egypt'. The visit reinforces the unwavering joint commitment to fostering inclusive growth and sustainable development in Egypt through local administration reforms, institutional and capacity development.

The highlight of the visit was the laying of the foundation stone for the identified LED intervention in Fayoum governorate, which focuses on establishing the Services Centre and Industrial Complex for Table Olives in Yousef El Sedeek District, one of the districts of Hayah Kareema Initiative. Additionally, the counterparts met with the local businessmen community within the productive value chain which the LED project is part of, highlighting the interconnectedness of the proposed complex with the broader economic landscape. Within a challenging phase of the national economy, it would be important to encourage the local administration support to local economies through consultation with civil society and private sector.

With funding from the EU totaling €7 million, this partnership aims to support MoLD's mission of creating a modernized and decentralized local administration system at the central and local levels, piloting in four Upper Egypt governorates; Beni-Suef, Fayoum, Luxor, and Aswan. Promoting mandated reforms in local administration as well as key interventions in Local Economic Development (LED) value chains complement the Presidential Initiative Hayah Kareema (Decent Life), hence ensuring enduring impacts and sustainability of inclusive improvements in services, infrastructure, and leading to the provision of sustainable employment opportunities for youth and women in rural districts and poor villages.

Local Economic Development (LED) which stands as the heart of this partnership, supports decentralization by economically empowering local administration that coordinates central support with local initiatives as well as public and private investments and efforts. By enabling the governorates’ economic development and capability to mobilize and utilize local resources, LED initiatives aim to empower communities, driving sustainable job creation and improved business services. The project focuses on establishing LED mandates for the four pilot governorates and implementing interventions for value chain and cluster development of the most promising economic sectors at the governorate level and complementing the Hayah Kareema Initiative. The selection of LED interventions at the pilot governorates was done through participatory approaches with private sector and civil society through the Socio-economic Council of the governorates and public consultation sessions.

During the visit, the partners also met with the governorate's Socio-Economic Council, including representatives of civil society and private sector, to discuss the LED intervention, which underscored the importance of private sector and civil society engagement in driving sustainable development agendas, aligning closely with the project's mandate. The discussions underscored the strategic planning framework linking local development to the Sustainable Development Goals (SDGs) and Egypt's Vision 2030, highlighting the project's commitment to driving sustainable growth. During the visit, discussions were held with the governor of Fayoum and executives which emphasized the importance of innovative local planning practices, LED, institutional and capacity development in driving sustainable development, as part of the mandates of the Technical Support Project to MoLD.

H.E. Major General Amna, the Minister of Local Development affirmed, the Ministry of Local Development closely follows up on the development efforts being carried out in Fayoum Governorate, especially in promoting private sector engagement and investment opportunities. Following the Presidential and Prime Minister’s directives in promoting investment opportunities across all governorates, with special emphasis on Upper Egypt Region, the Ministry of Local Development spearheaded by mandating all governorates to establish an institutional vehicle, the Socio-Economic Council, with proper representation of private sector and civil society for active consultation.

In his talk, Amna accentuated the efforts exerted by the Ministry in supporting governorates across Egypt in promoting Local Economic Development as well as enhancing the role of active private sector participation in implementing and managing projects at local levels that contribute directly to local communities.

H.E. expressed: “I seize the opportunity to acknowledge the tremendous, exerted effort crowned by laying the foundation stone for the Services Centre and Industrial Complex for Table Olives in Yousef El Sedeek District, during today’s visit. This comes as part of continuous work carried out by Fayoum governorate to attract investments and enhance local economy, supported by the Ministry of Local Development. It encompasses a range of interventions to create an enabling business environment, attractive to private sector players, and incentives to engage them in serious attempts to boost local economy and enhance the livelihood of citizens.”

H.E also highlighted the pivotal role that the Technical Support Project to MoLD, in cooperation with the UNDP and funded by the EU, which plays in strengthening the role of the Ministry to support governorates to carry out their mandates in support to the governorates to enhance local economic development and identifying a number of project at the four pilot governorates (Fayoum, Beni Suef, Luxor and Aswan) in a way that encourages partnerships between the public and the private sector. Besides, the Technical Support Project supports the Ministry in strengthening its stewardship role by defining a bundle of local development policies in relation to decentralization, local administration reform and rural development as well as strengthening the institutional arrangement of the Ministry and governorates.

Dr. Ahmed El Ansary, Governor of Fayoum, accentuated the Governorate of Fayoum’s efforts to involve the private sector and civil society in sustainable development projects. Dr. Al Ansary highlighted further “We are now working on preparing a model for operating projects that will be managed by the private sector, taking proactive measures to enhance the business environment, and providing facilities to investors. This is demonstrated by facilitating investor procedures in the Kom Oshim industrial zone, new areas were offered to investors and the industrial activity of industrial complexes in the governorate was determined in cooperation with the General Authority for Industrial Development and the Ministry of Local Development.”

Dr. El Ansary accentuated the pivotal role of the Socio-Economic Council in Fayoum Governorate encompassing local executive members, civil society organizations, businessmen association and natural leaders. They participated effectively in setting the vision, strategic goals, and programs in all development sectors in the governorate (Strategic Plan Fayoum 2030) effectively with the advisory team supported by the Technical Support Project of the Ministry of Local Development which took place on February 26, 2024.

Mr. Sylvain Merlen, UNDP Deputy Resident Representative in Egypt, acknowledged the instrumental partnership with the Ministry of Local Development and the significant support extended by the European Union for making the inauguration a reality today. He added, “This strategic partnership exemplifies our joint commitment to supporting decentralization, effective local administration, and rural development, ensuring enduring impacts that align with Egypt's Vision 2030 and the SDGs.” He emphasized that as part of the project’s commitment to supporting decentralization and local administrative reform, is the fostering of private sector and civil society community engagement mechanisms at the local level, noting that “It is imperative to prioritize inclusivity, active participation, and economic empowerment of citizens, with a particular emphasis on women and youth, to ensure the long-term sustainability of this collaborative partnerships.”

Mr. Merlen reaffirmed UNDP's steadfast commitment to advancing sustainable development in Egypt, with a focus on empowering local communities and enhancing public service delivery through supporting initiatives such as 'Hayah Kareema' (Decent Life). He further emphasized that this identified LED intervention, the Services Centre and Industrial Complex for Table Olives in Yousef El Sedeek District, located within one of Hayah Kareema districts, potentially lays the groundwork for replicable practices and systems, adding that “By piloting improved strategies in this district, we set a precedent for effective economic empowerment that can be replicated not only in the project's other pilot governorates but across all Hayah Kareema districts nationwide.”

The day concluded with a visit to Tunis Village, exemplifying a model for rural and sustainable tourism. Discussions with local entrepreneurs underscored the potential for promoting rural and sustainable tourism in Fayoum, discussing its potential for replication and its alignment with the project's broader objectives.