BMI View: The Egyptian water sector is relatively well developed with regards to extraction and distribution; however, the wastewater and sanitation segments need much more investment. The Middle East is classed as a water stressed area, and the whole region is losing water at a dramatic pace as resources are over-used beyond renewal rates, and demand continues to increase across the board. Wastewater, if properly harnessed, represents a vast resource of low-quality water suitable for agricultural irrigation and some industrial consumption.
We believe Egypt's continued state of unease is likely to affect the development of the water sector. In particular, we believe that despite the public's vocal desire for better services and water access, funds will continue to remain limited, hampering the overall development of existing water infrastructure. Egypt remains politically and economically unsettled and this is likely to affect the water sector in various ways. On the one hand, funds are limited. However, on the other there is a great deal of public pressure on the government to ensure the provision of basic affordable amenities like drinking water. Further pressures stem from the continuing international debate over Ethiopia's damn project which will threaten Egypt's Nile resources. BMI is confident the short-term future of the water market remains secure and lucrative, yet the long-term future of the nation remains precarious and increasingly depends on fickle foreign investment and resources.
We remain optimistic about the water sector in Egypt. Increasing levels of demand, a keen government focus on the sector and recently secured investment create many opportunities for foreign and domestic operators and investors. The Egyptian government's focus on public-private partnerships (PPPs) has been heavily balanced towards water infrastructure and substantial potential still exists if the government decides to throw its support behind PPPs, though low water...
The Egypt Water Report has been researched at source and features latest-available data covering public and private sector investment in all major water projects including water extraction, water distribution and water treatment and sanitation projects and also includes competitive intelligence. The report features BMI Research's independent industry forecasts and analysis of latest industry news, trends and regulatory developments in Egypt.
BMI's Egypt Water Report provides industry professionals and strategists, sector analysts, business investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the water industry in Egypt.
- Benchmark BMI's independent water industry forecasts for Egypt to test other views - a key input for successful budgeting and strategic business planning in the Egyptian water industry.
- Target business opportunities and risks in Egypt through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering regulatory changes, major investments and projects and signifi cant national and multinational company developments. These are broken down into Water Extraction, Water Consumption and Water Treatment & Sanitation.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the water and wastewater sectors and the potential affects for industrial consumers, within the broader political, economic and business environment.
BMI Industry & Economic Forecasts
Historic data series (2011-2012) and forecasts to end-2019 for all key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Extraction: Total water extraction (mn cubic metres) (% growth y-o-y); underground water extraction (mn cubic metres) (% growth y-o-y) (% of total water extraction); surface water extraction (mn cubic metres) (% growth y-o-y) (% of total water extraction).
- Consumption: Total water consumption (mn cubic metres) (% growth y-o-y) (% of total water extraction); total mains water consumption (mn cubic metres) (% growth y-o-y) (% of total water extraction); household water consumption (mn cubic metres) (% growth y-o-y) (litres per household per day); total non-mains water consumption (mn cubic metres) (% growth y-o-y) (% of total water extraction); water losses total mains water consumption (mn cubic metres) (% growth y-o-y) (% of total water extraction).
- Treatment: Total waste water discharged (mn cubic metres) (% growth y-o-y); treated discharged water (mn cubic metres) (% growth y-o-y); untreated discharged water (mn cubic metres) (% growth y-o-y); mechanically treated wastewater (mn cubic metres) (% growth y-o-y); biologically treated wastewater (mn cubic metres) (% growth y-o-y); combined treated wastewater (mn cubic metres) (% growth y-o-y).
- economy: Economic growth (%); nominal GDP (USDbn); unemployment (%); interest rates (%); exchange rate (against USD).
BMI’s Water Risk Reward Index
BMI’s Risk Reward Indices provide investors (water management, water utility and water infrastructure companies) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
This is broken down into the following sectors:
- Water supply & Consumption: Where the water comes from, (rivers, springs, lakes, surface water, ground water and so on), key trends with regards to extraction, key trends with regards to overall water consumption, municipal or domestic consumption, and key industrial and agricultural consumption trends.
- Water distribution: This examines how the water is distributed – whether by municipalities, regional organisations or national companies, whether the water networks are nationalised or privatised, and key trends and developments.
- Water Treatment & sanitation: This section evaluates the country’s water pollution levels, the connectivity to water mains and sewage networks, the volumes and methods of water treatment, government initiatives with regards to treatment and sanitation processes and key projects, trends and developments.
- Regulations & Tariffs: Key national and regional legislations with regards to water pollution, extraction and distribution as well as an overview of water rates for domestic and industrial users.
Industry Trends & Developments
Analysis of latest projects across the water infrastructure sector including water and wastewater treatment plants, desalination facilities, mains water and sewage network expansions, dams, and hydropower plants.
Provides an overview of key government ministries overseeing the water sector together with regulatory organisations, alongside the central companies involved in water and wastewater distribution and treatment services in the country.
The Water Market Reports are based on an extensive network of primary sources, such as multilateral organisations (UN, WB, IMF), national chambers of commerce and industry, national statistical offices, government ministries and central banks, and multinational companies.