One in five Egyptians faces multidimensional poverty, according to the global Multidimensional Poverty Index (MPI), a data-driven framework recently adopted by Egypt to understand and tackle human living conditions.
The MPI, developed by the United Nations Development Programme (UNDP) and the Oxford Poverty & Human Development Initiative (OPHI), assesses poverty through 19 indicators spanning seven dimensions such as education, health, housing, essential services, employment, social protection, and food security.
Individuals are classified as “poor” if they experience deprivation in at least two of the seven MPI dimensions, equivalent to 29 percent of the weighted indicators.
Egypt’s MPI
In 2022, multidimensional poverty impacted 21 percent of Egypt’s population, affecting one in every five individuals, according to the UNICEF 2024 Multidimensional Poverty in Egypt report.
In rural areas, where multidimensional poverty is twice as high as in cities, nearly one in three people face deprivation, largely due to limited access to essential services, which accounts for 20 percent of overall poverty.
The average intensity of multidimensional poverty in Egypt measured 37 percent, indicating that those affected experienced deprivation in more than a third of the weighted indicators.
Egypt is one of over 100 developing nations where acute poverty and the MPI are tracked and measured. Adopting and following the MPI could help Egypt advance its data-driven efforts to improve living conditions for its most vulnerable populations and address their deprivations.
This framework can transform social policy by providing tailored, multidimensional data addressing critical indicators like access to education, healthcare, and living standards, according to Sabina Alkire, Director of the OPHI.
These thoughts were echoed by Egypt’s Minister of Planning, Economic Development, and International Cooperation, Rania A. Al-Mashat, at the Global Conference on Health, Population, and Human Development in October 2024.
Al-Mashat stated that Egypt’s National MPI will help shape poverty reduction strategies, strengthen national data analysis capabilities, and ensure the release of accurate indicators.
Employment and access to essential services such as water, sanitation, electricity, internet, and waste disposal, account for 40 percent of the total MPI score, making them the biggest contributors to poverty in Egypt according to the 2022 report.
MPI indicators also show that 19 percent of multidimensionally poor individuals lack decent work and social insurance.
Egypt’s national MPI creates a framework for policymakers to address poverty in all its dimensions. The report states that with regular updates, policymakers can leverage extensive data to assess the scale, depth, and regional distribution of poverty, set targeted reduction goals, identify key intervention areas, and prioritize support for the most marginalized and vulnerable groups to guide aid programs.
Policy recommendations also stress the importance of maintaining social welfare measures to protect the poor and vulnerable, ensuring a fair distribution of resources.
Egypt Addresses Poverty
In an effort to tackle poverty, Egypt launched its National Structural Reform Programme 2021-2024 to broaden Egypt’s economic production by prioritizing three key sectors, including manufacturing, agriculture, and communications and information technology, which serve as the pillar of the structural reform agenda.
Another example is the Hayah Kareema (A Decent Life) Initiative, launched in 2019, which aimed to improve living conditions for Egypt’s most vulnerable, with a focus on rural communities, while also enhancing public services, expanding access to healthcare and medical support, and providing job opportunities.
During the Global Conference on Health, Population, and Human Development, Al-Mashat highlighted the success of the Takaful and Karama program, a World Bank-funded initiative that has provided cash assistance to 20 million Egyptians over nine years. Backed by USD 1.4 billion (EGP 70.8 billion) in concessional financing, the program has been recognized by the World Bank as a model for cash transfer initiatives in developing countries.
Turning data into action remains the true test of the MPI’s impact. The Senior Economist at the United Nations Economic and Social Commission for Western Asia (ESCWA), Khalid Abu-Ismail, urges regular monitoring and frequent localized data collection to track poverty trends and emerging needs.
With a dynamic feedback loop between data and policy, Egypt has the opportunity to refine its strategies and enhance efficiency through digital tools to combat poverty.
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