Egyptian students abroad are going to have an easier time getting FX to pay tuition fees + expenses: Banks in Egypt have begun moving to fulfill pending requests from individuals looking to arrange foreign currency (FCY) for their children studying at schools and universities abroad, according to three government sources Enterprise spoke with. Many students abroad and their families have been struggling to get their hands on enough FCY to cover tuition fees and other expenses, particularly after banks imposed limits on the use of EGP credit cards for FCY transactions, our sources noted.

REFRESHER- Last week, the CBE moved to float the EGP, leaving the exchange rate “to be determined by market forces” after hiking interest rates by 600 bps at a surprise monetary policy meeting. The decision allowed Egypt to sign a USD 8 bn program with the International Monetary Fund, and could help us secure another USD 11 bn from international partners including the World Bank, European Union, Japan, and the UK, Finance Minister Mohamed Maait said.

How much are we looking at? One source we spoke to estimated that the pending requests currently stand at some USD 200 mn, although that figure changes on a daily basis as more requests come in. There are some 20k Egyptian students studying abroad, with each student’s annual education-related expenses — not including personal expenses — averaging at USD 20k, according to a Higher Education Ministry source.

Parents were forced to resort to black market: Prior to the CBE floating the EGP, leading banks to start moving on easing FCY and credit card restrictions, parents were forced to source FCY to cover their kids’ tuition fees and other expenses abroad from the parallel market, according to two parents speaking to Enterprise on condition of anonymity. These parents would have to buy FCY at the parallel market rate and then transfer the money to their children abroad through apps that didn’t impose the same limitations as credit cards.

Priority FCY spending goes to education + health expenses: Banks are prioritizing expenses for Egyptians who are studying or receiving medical care abroad, according to two banking sources Enterprise spoke with. That has been the case since banks began imposing limits on weekly and monthly FX withdrawals and foreign purchases in late 2022, with the CBE introducing exemptions for Egyptians abroad for educational or medical purposes.

Even as things start to look up for students abroad, there are calls to double down on higher education here at home: Students seeking education abroad typically fall into one of two camps: The first camp seeks a degree or specialization that’s not offered in Egypt or they’re looking for education that meets global quality standards, and these students typically go after higher education degrees in the US, UK, and other major global universities. The other camp — which is more of a minority — looks for universities that offer degrees at low price points, and typically go to more obscure universities. The Higher Education Ministry has sought to cut down on the second camp by refreshing its list of accredited universities whose degrees are eligible for degree equivalence in Egypt, according to our two ministry sources.

More high-quality options are coming to Egypt: The Higher Education Ministry has been working for the past several years to bring international universities to Egypt to establish branch campuses, with the government ratifying the International Branch Campus Act in 2018. Now, Egypt sees at least one foreign university setting up a branch campus in Egypt each year, according to former secretary general of the Council for Private and National Universities in Egypt, Seddik Abdel Salam.

Your top education stories for the week:

  • Egypt, Hungary to promote academic exchange: The Mansoura University's Faculty of Agriculture signed a MoU with the Hungarian University of Debrecen's Faculty of Agriculture last week to collaborate on and promote scientific and academic exchanges.
  • A minimum of 5% of all scholarships to go to STEM students: The Supreme Council of Private Universities will require all private and national universities to award 5% of their scholarships to students at STEM schools.
  • Egypt, Germany to boost cooperation on pre-university education: TheGoethe Institute will develop teacher training programs, help teachers qualify to teach German as a foreign language, and design a curriculum for German language teaching.
  • Another uni in the market: Al Ahly CIRA’s Saxony Egypt University of Applied Sciences and Technology (SEU) will kick off operations in September after it received the greenlight from the cabinet.
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