This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 6/21/2017

Overview                                                                                                                

Ethiopia - Water and Wastewater - Market Share

 

2013

2014

2015

2016
(estimated)

2017
(estimated)

Total Market Size *

4.658

5.124

5.636

6.023

6.358

Total Local Production

N/A

N/A

N/A

N/A

N/A

Imports from the U.S.**

931

1.024

1.127

1.239

1.255

Exchange Rate: 1 USD

EGP 7

EGP 7

EGP 7

8.8

8.8

Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
*Market size - USD billion, **Imports - USD million


The Egyptian market for water and wastewater equipment and services is growing and becoming more competitive due to renewed government focus on the sector and recently secured investments creating opportunities for foreign and domestic operators and investors.

Water-intensive agricultural methods also threaten Egypt’s water resources.  In response to the threat, the government has recommitted its focus on the sector and the efficient use of resources. For example, in April 2013 the government called for the prohibition of rice cultivation in desert lands. Moreover, the government is working to secure badly needed foreign investment.

The Egyptian government is also working to create a favorable, competitive landscape and may be ready to provide guarantees on payments for public-private partnership water projects to help mitigate the currency risk. The Holding Company for Water and Wastewater (HCWW) has finalized the country's master plan for water and sanitation up to 2037, which prioritizes a number of potential water projects according to socio-economic need. HCWW says capital expenditure of over USD 2 billion will be invested into water supply and more than USD 3.5 billion will go into wastewater between 2015 and 2020.

Despite the presence of the Nile River, which spans the entire length of Egypt from South to North, Egypt has suffered from water scarcity problems in recent years.  The Government of Egypt has launched a number of awareness campaigns to educate Egyptians concerning best practices for developing networks to ensure effective and responsible water distribution and usage.  The governments of Egypt, Ethiopia and Sudan signed a declaration of principles on March 23, 2015 on the Grand Ethiopian Renaissance Dam to end the Nile water crisis which is a positive step after a period of concern from Egypt on the effect the Dam will have on its water resources.

There is also a strong need to expand networks of wastewater management to a large number of rural areas throughout Egypt. The table below shows a comparison of various networks around the country that have been developed and constructed over the last eight years.

Networks of Wastewater Management - Ethiopia

Year

2005

2015

Service region

12 governorates

27 governorates

Subsidiary companies

14 companies

25 companies

Water service coverage ─ millions

2.5 No coverage
7.5 Rotation system
15 Unacceptable Service

98 percent

Wastewater service coverage

40 percent

50 percent
85 percent Urban
10 percent Rural

Water production ─
annual average

 18 million m3/day

27 million m3/day

Water treatment plants

1005 Plants

2845 Plants

Wastewater treatment plants

149 plants

395 plants

Water distribution networks

74,000  km

167,000  km

Wastewater collection networks

28,000  km

48,000  km

 




































TABLE SOURCE: Holding Company for Water and Wastewater.

In 2004, the Government of Egypt established the public sector Holding Company for Water and Wastewater (HCWW), which unified the various public sector and other water and sanitation companies across Egypt.  According to the Presidential Decree that created the HCWW, the company’s mission is to purify, desalinate, sell and distribute drinking water; and to collect, treat, and safely dispose of wastewater. HCWW also has responsibility for extending drinking water to villages, and maintaining, renovating, and replacing drinking and wastewater collection systems.

The Egyptian government practices a revenue generating method to raise funds for new sewage networks and potable water stations.  The government plans to expand services in Upper Egypt and rural areas to reach the low and middle class population.  The Government of Egypt has multiple projects planned through the public-private partnership model, including the Abu Rawash Water Plant and the 6th of October Plant.

The Egyptian Military Commercial Unit is active in the water sector and builds some of HCWW’s plants.  The military also plays an active role in the desalination and reverse osmosis plants in areas adjoining the Mediterranean and the Red Sea.

The following is a list of the major ongoing projects funded by the Government of Egypt and international donors:

  • The World Bank signed a $550 million program to improve sanitation services for more than 800,000 Egyptians in the Nile Delta to increase access to water, waste disposal, and health services.

  • The Arab Fund for Economic and Social Development (AFESD) will lend USD200mn to Egypt in 2016 to fund drilling wells and desalination schemes in the Sinai Peninsula

  • The OPEC Fund for International Development (OFID) announced that it will fund two irrigation projects worth USD 65 million and the French Development Agency (AFD) granted a USD 75 million loan agreement for drinking water and sanitation projects in southern Egypt.

  • The Egyptian Government has allocated USD 2 billion for sanitation projects in rural areas.

  • Egypt launched a national water campaign to reduce water usage.

  • USAID has agreed to fund USD 50 million worth of water infrastructure projects in northern Sinai through 2017.

  • The German government announced a USD 225 million loan for infrastructure projects, including the USD 65.5 million Assuit Barrage irrigation project.

  • A range of partners including Switzerland and German development bank KfW have agreed for funding of USD 250 million for phase two of Egypt’s improved water and wastewater services which will be implemented in Upper Egypt.

  • The Islamic Development Bank announced it will provide USD 110 million for irrigation and water treatment in Egypt.

Best Products/Services                                                                                

  • Sanitary wastewater projects

  • Composting programs

  • Water and sludge treatment projects, filters and services

  • Reverse osmosis

  • Water desalination equipment

  • Design of water plants

  • Solid waste management equipment and operation

  • Water meters

  • Water and sludge treatment projects, filters and services

Opportunities

Egypt is interested in updating its technology in the water sector, in areas such as water desalination, reverse osmosis, and the design and construction of new water plants in rural areas.  According to the HCWW, there is a strong need in the following areas:

  • Project design and construction of water treatment plants ranging in size depending on the population of the governorate;

  • Project design and construction of desalinization plants; and

  • Water and wastewater treatment equipment and technology.

 
The U.S. share of Egypt’s water equipment and services market is currently estimated at approximately 20 percent.
Opportunities exist for U.S. companies in the fields of water resources consulting and the supply of water pumps and filtration equipment and devices.

Resources

Commercial Service in Egypt
U.S. Embassy
USAID
World Bank
Egyptian Government Web Portal
Ministry of State for Environmental Affairs
Holding Company for Water
 

Contact for the Commercial Specialist in charge of the Water Resources Sector:

Hany Wassef, Hany.Wassef@trade.gov

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.



Egypt Environmental Technology Trade Development and Promotion