This case study is included in the report “Financing Repression” – find out more in this page.
In Egypt, fear of repression has led to widespread self-censorship, preventing human rights defenders, CSOs and anyone from safely voicing their concerns about development projects, while development finance insitutions (DFIs) and the European Union (EU) continue to commit billions to finance the regime.
Over the past decade, people who criticize the government in Egypt have been subjected to forced disappearances, arbitrary detentions, torture, criminalization and extended pre-trial detentions. In 2023, thousands of people were held in arbitrary detention or unjustly prosecuted. The most common charges include being part of terrorist groups, spreading false news, misusing social media platforms or calling for unauthorized protests.
The government applies draconian laws against journalists, defenders, opposition leaders and peaceful protestors, that stifle dissent and restrict civic freedoms. The 2018 Cybercrime Law, for example, allows authorities to block websites without a judicial order and on vaguely defined grounds, and providers who do not comply with those decisions can face prison. News sites are required to obtain a license, and the Supreme Council for Media Regulation has authority over personal social media accounts with more than 5,000 followers. Over the last years, security forces have violently repressed multiple protests and perpetrated unlawful mass arrests of protesters, including children, conveying a message of zero tolerance for dissent. The 2019 NGO Law grants the government broad powers to oversee the registration, activities and funding of non-governmental organizations (NGOs), and has forced many organizations to suspend their work in the country. In addition, NGO workers also face travel bans, asset freezes and unlawful surveillance.
According to a member of an international civil society organizations (CSO) working with Egyptian organizations, people fear engaging with DFIs as they are afraid of reprisals. For instance, a defender we interviewed told us that Egyptian CSOs had recently declined an invite to an advocacy meeting about international investment, fearing possible reprisals. The defender also reflected on the low number of complaints filed to DFIs’ accountability mechanisms in the region and pointed to a combination of fear and mistrust that also prevents people from speaking out. They are convinced that DFIs are in collusion with the government and they do not trust any official will bring justice. Even activists living abroad are often afraid to speak out, as the Egyptian government has targeted relatives of people criticizing the authorities in the past.
A member of another organization said “people in Egypt are pretty much aware of the government’s capacity to surveil online activities and monitor communications, and people are afraid of criticizing policies or projects.”
Why DFIs should care
Egypt is one of the three countries with closed civic space that received the highest level of financing from DFIs, reaching a total of over US$ 22 billion dollars over the last five years, with projects mainly focused on the financial, energy and infrastructure sectors.
In addition, in 2024 the EU established a strategic and comprehensive partnership with Egypt, which includes a €7.4 billion package (corresponding to over US$ 8 billion). Local, regional and international human rights organizations urged the EU and its member states to uphold international and EU law, to ensure that this financial assistance secures concrete human rights progress and reforms in the country. According to the Council of the EU’s decision, a precondition for this financial assistance is that “Egypt continues to make concrete and credible steps towards respecting effective democratic mechanisms, including a multi-party parliamentary system, and the rule of law, and guaranteeing respect for human rights.” These steps, however, were not defined.
This type of economic agreement lacks legitimacy since there are no opportunities for Egyptian citizens – who should be the ones benefiting from it – to demand accountability or express concerns. In such an extremely restrictive context, where dissenting voices are violently and routinely silenced, development financiers run a high risk of unwittingly causing harm with their investments. They also contribute to strengthening the power of the ruling regime, further legitimizing it, and fuelling the repression of critical voices.