Economic Research Forum (ERF)

Refugees and asylum-seekers in Egypt in the time of Covid-19

1613
The many refugees and asylum-seekers in Egypt were facing numerous challenges of integration and access to work even before the Covid-19 pandemic. This column outlines their daily struggles for survival, as well as the emerging economic and health risks as a result of the crisis and the policy responses.

In a nutshell

Refugees and asylum-seekers in Egypt are highly involved in the private informal sector, where they work within their community in retail shops or in some form of trade with local people.

The curfew and lockdown measures adopted by the government in its plan to combat the spread of Covid-19 have had a negative impact on the livelihoods of this vulnerable group.

The limited financial resources of refugees and asylum-seekers, along with the absence of any form of health coverage or insurance, are putting their health at risk.

Egypt is considered both a destination country and a transit country for refugees and asylum-seekers. As of March 2020, the country had more than a quarter of a million registered refugees (26%) and asylum-seekers (74%), comprised of at least 58 different nationalities.

Registered refugees and asylum-seekers mainly live in urban areas, concentrated particularly in the governorates of Greater Cairo (Cairo, Giza and Kalyobia) and Alexandria. More than half of them are of working age: 58% are in the age group 18-59.

There are also many unaccompanied refugee children in Egypt, whose lives are particularly complicated. For a start, the journey of migration and separation from families tends to be, in most cases, traumatising to the extent that it clouds the decisions of these young and separated children.

While there is no official breakdown in the announced numbers of unaccompanied refugee children, there seems to have been approximately 4,000 of them in Egypt at the end of 2018. These children are granted asylum on arrival in the country, yet they still face racism and hostility in addition to lacking the economic support and legal protections needed to survive.

Struggling with survival, health and safety

During their time in Egypt, refugees and asylum-seekers have the option of becoming economically active and engaging in a job to generate income, or they can depend on financial transfers (from international organisations or family and friends abroad) and borrowing, which further increases their vulnerability. The situation in Egypt has made it more challenging for refugees, and especially children/minors (unaccompanied or not), to integrate into the labour market and thereby achieve financial autonomy.

The economic and financial vulnerability of refugees and asylum-seekers is compounded by local labour markets, as well as the regulations and policies regulating those markets. Refugees and asylum-seekers generally live on the margins of society, struggling to secure their livelihoods. They share similar living conditions to poor Egyptians, locating in the poorer neighbourhoods in urban cities, mainly around Greater Cairo and Alexandria.

The restricted integration of refugees and asylum-seekers in Egypt is mainly due to the country’s weak infrastructure. The high population growth rate and the bulge in the demographic structure of the Egyptian population at education and working ages have led to the low quality of the education system and its capacity to cater for the already very large national population. In addition, there are high rates of unemployment, especially among local youths. In light of local labour market ailments, Egypt’s government has placed restrictions on foreigners’ right to work to protect its national labour force.

This means that refugees and asylum-seekers are treated like any other foreigner, subject to labour laws and required to obtain a work permit. Applications for work permits have to be submitted through employers, and they are subject to the number of Egyptians already working in an organisation and the activity of that organisation.

If an application is approved, a fee has to be paid and the employee has to submit documents, including HIV test results, travel documents and copies of passports or UNHCR (United Nations High Commissioner for Refugees) refugee cards. Like foreigners, refugees do not have access to certain professions, such as tourism, exports and customs-related jobs.

Stereotypes of refugees as poor, illiterate and low-skilled add to their problems. Employers are reluctant to go through the process and expenses of hiring foreigners, who may not be fully productive, due to their lack of skills and education. Accordingly, lack of skills and opportunities for legal employment, as well as competition with Egyptians, perpetuates economic vulnerability.

Struggles of refugees and asylum-seekers with Covid-19

Refugees and asylum-seekers typically behave as collective communities, with limited interaction with local people or communities of different nationalities. Sharing living arrangements with each other is considered a survival approach for refugees and asylum-seekers. They manage to share rent and daily living expenses to reduce the daily cost of living.

Refugees and asylum-seekers are highly involved in the private informal sector, where they work within their community in retail shops or in some form of trade with local people. The curfew and lockdown measures adopted by the government in its plan to combat the spread of Covid-19 have had a negative effect on the livelihoods of this vulnerable group.

Adding to the struggles facing the refugees and asylum-seekers, children and adults equally, is their lack of access to health services. Their limited financial resources, along with the absence of any form of health coverage or insurance, are putting their health at risk.

Co-existence with the virus is posing health risks for entire communities, with greater risks shared among refugees and asylum-seekers. Living together in large groups under one roof and their limited access to health services puts their lives at greater risk. The UNHCR is working hard to cater to the livelihoods needs of the refugees and asylum-seekers while addressing their health vulnerabilities. This is adding to the uncertainties and difficulties of their lives.

Most read

Social insurance in Egypt: between costly formality and legal informality

The rates of participation of Egyptian workers in contributory social insurance has continued to decline, even during times when the country has had positive annual growth rates. This column discusses key institutional elements in the design of the current social insurance scheme that have contributed to the growing gap in coverage, particularly the scheme’s cost and eligibility requirements.

Making trade agreements more environmentally friendly in the MENA region

Trade policy can play a significant role in efforts to decarbonise the global economy. But as this column explains, there need to be more environmental provisions in trade agreements in which developing countries participate – and stronger legal enforcement of those provisions at the international level. The MENA region would benefit substantially from such changes.

Jordan: navigating through multiple crises

Jordan’s real GDP per capita is today no higher than it was 40 years ago. While external factors have undoubtedly had an adverse effect on the country’s economic outcomes, weak macroeconomic management and low public spending on investment and the social sectors have also played a substantial role. This column explores what can be done to reduce high public debt, accelerate private sector development and enhance social outcomes.

Iran’s globalisation and Saudi Arabia’s defence budget

How might Saudi Arabia react to Iran's renewed participation in global trade and investment? This column explores whether the expanding economic globalisation of Iran, following the lifting of nuclear sanctions, could yield a peace dividend for Saudi Arabia, consequently dampening the Middle East arms competition. These issues have attracted increased attention in recent times, notably after a pivotal agreement between the two countries in March 2023, marking the resumption of their political ties after a seven-year conflict.

Egypt and Iraq: amenities, environmental quality and taste for revolution

The Middle East and North Africa is a region marked by significant political turbulence. This column explores a novel dimension of these upheavals: the relationship between people’s satisfaction with, on one hand, the amenities to which they have access and the environmental quality they experience, and, on the other hand, their inclination towards revolutionary actions. The data come from the World Value Survey collected in 2018 in Egypt and Iraq.

Global value chains and domestic innovation: evidence from MENA firms

Global interlinkages play a significant role in enhancing innovation by firms in developing countries. In particular, as this column explains, participation in global value chains fosters a variety of innovation activities. Since some countries in the Middle East and North Africa display a downward trend on measures of global innovation, facilitating the GVC participation of firms in the region is a prospective channel for stimulating underperforming innovation.

Labour market effects of robots: evidence from Turkey

Evidence from developed countries on the impact of automation on labour markets suggests that there can be negative effects on manufacturing jobs, but also mechanisms for workers to move into the services sector. But this narrative may not apply in developing economies. This column reports new evidence from Turkey on the effects of robots on labour displacement and job reallocation.

Do capital inflows cause industrialisation or de-industrialisation?

There is a clear appeal for emerging and developing economies, including those in MENA, to finance investment in manufacturing industry at home with capital inflows from overseas. But as the evidence reported in this column indicates, this is a potentially risky strategy: rather than promoting industrialisation, capital flows can actually lead to lower manufacturing value added and/or a reallocation of resources towards industries with lower technology intensity.

Food insecurity in Tunisia during and after the Covid-19 pandemic

Labour market instability, rising unemployment rates and soaring food prices due to Covid-19 are among the reasons for severe food insecurity across the world. This grim picture is evident in Tunisia, where the government continues to provide financial and food aid to vulnerable households after the pandemic. But as this column explains, the inadequacy of some public policies is another important factors causing food insecurity.

Manufacturing firms in Egypt: trade participation and outcomes for workers

International trade can play a large and positive role in boosting economic growth, reducing poverty and making progress towards gender equality. These effects result in part from the extent to which trade is associated with favourable labour market outcomes. This column presents evidence of the effects of Egyptian manufacturing firms’ participation in exporting and importing on their workers’ productivity and average wages, and on women’s employment share.