MSMEDA, AFDB, MENATF

The importance of clusters to the economic and social development of countries around the world has been globally recognized since the 1990s. Egypt was one of the earliest countries in MENA to acknowledge the importance of organic clusters to its economic competitiveness. Early in 2003/2004, the “Policy Framework for Enhancing the Competitiveness of Small and Medium Enterprises in Egypt” had the development of organic clusters as one of its main components. Since then, organic clusters have been present on the agenda of economists, policy makers, and development organizations.

Several initiatives and projects targeted clusters in Egypt in various capacities; however, these efforts lacked synchronicity and coherence, and hence had minimal impact, due to the absence of a well thought out policy on clusters development. The complexity and severity of the constraints facing clusters, together with their huge potential contribution to competitiveness, economic growth and social and spatial equity, entail that cluster development be treated as a national issue involving significant coordination of efforts among all pertinent government and extra-government actors and entities.

Despite their significant actual and potential contribution to the national economy, the lack of a clear, consistent and coherent policy towards clusters development is one of the major obstacle facing clusters development efforts in Egypt. The formulation of the National Strategy for the Development of Organic Clusters comes at a critical transitional point in Egyptian history, as Egypt lays the foundation for rapid inclusive economic growth. This strategy contributes to this foundation through enabling and empowering local communities of private sector enterprises, academic institutions, and service providers to unleash their economic potential and evolve into poles of regional and international competitiveness.