How will Egypt integrate its shadow economy in its official one?
A study shows that Egypt’s shadow economy amounts to about $400 billion a year, prompting the government to merge it with its official economy through a series of new laws.
CAIRO — Naama al-Farmawi and her friend May Abdel-Moneim head to the Korba area in Cairo’s Misr al-Jadida district every morning, carrying sandwiches wrapped in bags with stickers that read "Naharak sa3eed" (Have a nice day) and sell them to passersby and workers.
For years, Farmawi has dreamed of running her own street kiosk, instead of selling her products on the corner of the street.
“All I need is a permit from the district to run and expand my business and preserve my rights and fulfill my [legal] duties to the state,” Farmawi told Al-Monitor.
According to a five-year study by the Federation of Egyptian Industries’ Tax and Customs Committee that was published in December, informal financial transactions in Egypt amount to roughly $400 billion per year. The study was sent to the Ministry of Finance.
