weighted score 5.1 · nine dimensions
Country Risk Profile
Egypt
Sourcing risk, regulatory exposure and audit intelligence for Egypt-origin supply chains.
Forced & child labour
5
TVPRA listings for cotton (child and forced labour) and limestone (child labour). Brick kilns and agriculture flagged. Risk concentrated in informal sectors rather than export-oriented manufacturing.
Worker rights & FOA
5
ITUC rating 5 (no guarantee of rights). Independent trade unions severely restricted. 2017 Trade Union Law limits union formation. Freedom of association constrained in practice.
OHS & audit transparency
6
OHS enforcement variable across sectors. Military-linked enterprises limit audit access. Export-oriented QIZ factories generally more transparent than domestic-market facilities.
Food & product safety
5
Food safety regulatory framework exists but enforcement is inconsistent. RASFF notifications for Egyptian food products occur across categories. Pesticide residue monitoring improving but gaps remain.
Environmental & regulatory
4
Environmental enforcement developing. Industrial zones have better compliance than dispersed manufacturing. Nile pollution and air quality in Cairo industrial areas are documented concerns.
Governance & anti-corruption
7
TI CPI 30/100. Military dominance of economy (25–40% of GDP) creates institutional opacity. Anti-corruption enforcement uneven. Regulatory predictability a concern for foreign buyers.
Tariff & preferential access
3
EU-Egypt Association Agreement provides preferential access. QIZ protocol for US market. Rules of origin compliance required. Tariff structure complex but preferential rates available for compliant exporters.
Non-tariff barriers
5
Import licensing, standards compliance, and labelling requirements create non-tariff barriers. Customs clearance times variable. Documentation requirements can be burdensome compared to more streamlined trade partners.
Supply chain traceability
6
Moderate traceability in export-oriented sectors. Informal economy (30–40% of GDP) creates significant gaps. Agricultural and artisanal supply chains particularly opaque. QIZ factories offer better visibility.
Labour & Social Risk
Labour & Social Risk
- Forced labour exposure
- Egypt appears on the US TVPRA list for cotton (child labour and forced labour) and limestone (child labour). Brick kilns and agriculture are also flagged sectors. Forced labour risk is concentrated in informal and seasonal labour-intensive sectors.
- Worker rights
- ITUC Global Rights Index rating of 5 (no guarantee of rights). Independent trade unions face severe restrictions. The 2017 Trade Union Law limits union formation. Freedom of association is constrained in practice.
- Military economy
- Military-linked enterprises are estimated to control 25–40% of GDP. These entities operate across construction, food production, cement, and consumer goods — often with limited labour transparency and audit access.
EU Regulatory Exposure
EU Regulatory Exposure
- EU-Egypt Association Agreement
- The EU-Egypt Association Agreement provides preferential tariff access. However, the agreement includes human rights clauses (Article 2) which could be invoked in response to documented rights violations.
- Governance & corruption
- Transparency International CPI score of 30/100. Military dominance of the economy creates institutional opacity. Anti-corruption enforcement is uneven and politically influenced.
- EU Forced Labour Regulation
- Regulation (EU) 2024/3015 applies from December 2027. TVPRA-listed goods (cotton, limestone) and military-linked supply chains present elevated risk of investigation under Article 5.
Trade & Traceability
Trade & Traceability
- QIZ factories
- Qualifying Industrial Zones (QIZ) allow duty-free US access for Egyptian exports containing minimum Israeli input. QIZ factories in textiles and garments generally have better audit access and traceability than non-QIZ facilities.
- Tariff complexity
- Egypt applies a complex tariff structure with numerous product-specific duties. Import licensing requirements and non-tariff barriers (standards, testing, labelling) add compliance burden for buyers sourcing from Egypt.
- Traceability
- Supply chain traceability is moderate in export-oriented sectors (textiles, food). Informal economy participation is high — estimated at 30–40% of GDP — creating significant traceability gaps in agricultural and artisanal supply chains.