CAIRO – 1 July 2019: With Egypt receiving the ultimate tranche of IMF, the federal government was eager to strengthen social security nets program together with Takaful and Karama, here’s a thorough rationalization for Takaful and Karama program as printed within the World Financial institution web site.

Egypt has made an funding in individuals a high precedence, because it believes that investing in its human capital is integral to the nation’s general growth. Accordingly, the nation’s formidable financial reform program launched in 2014 – which included removing of vitality subsidies, the adoption of a versatile change charge and the introduction of a brand new VAT tax – was coupled with efforts of scaling up social safety applications. These applications aimed to mitigate the potential short-term, adverse impacts of the reforms on the poorest and susceptible section of Egypt’s inhabitants. The efforts included increasing social security protection and rising the quantities on the meals subsidy card.

The Takaful and Karama conditional and unconditional money switch program is amongst Egypt’s largest investments in human capital growth. The title of the social security web program interprets to ‘’Solidarity and Dignity’’ and was launched in 2015 with the help of a US$400 million World Financial institution program. The Takaful and Karama program is applied by the Ministry of Social Solidarity and has coated thus far 2.26 million households which quantity to roughly 9.four million people, or roughly 10% of Egypt’s inhabitants.


‘’Takaful’’ or ‘’Solidarity’’ offers conditional household revenue help geared toward rising meals consumption, lowering poverty whereas encouraging households to maintain kids in class and offering them with wanted well being care. Together with guaranteeing susceptible households obtain fundamental vitamin, the objective is to construct the ‘human capital’ of the subsequent era and provides them a path out of poverty. This system is ‘conditional’, which means that households obtain a month-to-month switch of 325 Egyptian Kilos (EGP) offering they’re compliant with sure clearly outlined necessities. These embody all family kids ages 6 to 18 having at the least an 80% college attendance document, 4 visits per yr to well being clinics by moms and youngsters beneath the age of 6, sustaining youngster progress monitoring data, and attending vitamin consciousness periods. The periods assist promote higher youngster feeding practices, common immunizations, and antenatal and postnatal care of ladies. Households are given extra help for each Zero-6 years outdated youngster (60 EGP) major scholar (80 EGP), preparatory stage college students (100 EGP) and Secondary stage college students (140 EGP). This system covers a most of three kids per family and recertifies beneficiaries each three years. There are 1,962,785 households enrolled in Takaful (which quantity to roughly eight,341,836 people or 87% of this system’s complete households).

The ‘’Dignity’’ or ‘’Karama’’ a part of this system goals to guard Egypt’s poor aged residents above 65 years of age and residents with extreme disabilities and ailments in addition to orphans. These susceptible residents obtain a month-to-month pension of 450 EGP with no ‘situations’. The unique pension quantity was 350 EGP however lately acquired elevated to 450 EGP to allow beneficiaries to deal with worth hikes. A brand new purposeful incapacity evaluation mannequin has been rolled out throughout Egypt, shifting away from a purely medical strategy to incapacity to a extra rights-based mannequin, to find out Karama eligibility. Karama beneficiaries have reached 306,016 households (which quantity to roughly 1,300,568 people or 13% of this system’s complete households.) Out of Karama beneficiaries, 52,338 (17%) are aged, 252,338 (82%) are disabled and 1,668(1%) are each aged and disabled.

Of the households enrolled within the Takaful and Karama program, 1,998,280 are headed by girls (or 88% of all households), whereas 270,521 are headed by males (or 12%).


The Takaful and Karama Program is intently aligned with the World Financial institution’s lately launched Human Capital Undertaking, which is constructed on the assumption that investing in individuals by means of vitamin, well being care, high quality training, jobs, and abilities are key to ending excessive poverty and creating extra inclusive societies. The Human Capital venture goals to construct demand for extra and higher investments in individuals, assist nations strengthen their human capital methods and investments for speedy enhancements in outcomes and enhance how human capital is measured.

Mervat is a ‘’Takaful’’ beneficiary who mentioned that her husband is struggling to make ends meet and but remains to be doing his finest to ensure that their kids get educated. ‘’I’ve kids in several levels of Schooling’’ mentioned Mervat’s husband, ‘’ that is what actually urged me to use to the ‘’Takaful’’ program.’’ Mervat added that ‘’since I acquired the ‘’Takaful’ switch, I paid pending tuition charges for my kids. I nonetheless have EGP 300 which I spend on my household as wanted.’’

Hussein Darwish, a development employee in Higher Egypt, is one among many ‘’Karama’’ beneficiaries. Hussein makes use of the pension to help his eldest son Alaa, who grew to become absolutely paralyzed on the age of eight years outdated. ‘’I elevate constructing supplies for a dwelling’’ mentioned Hussein. ‘’If someday passes and I don’t work, I should borrow cash to purchase my son’s treatment,’’ Hussein defined that he receives his Karama pension by means of an digital card.

Mastoura is one other Karama beneficiary. ‘’ I used to be examined by the final medical board and was identified with a excessive stage of fibrosis. I additionally undergo from hepatomegaly and splenomegaly. So, they determined that I would like a ‘’Karama’’ pension’’ mentioned Mastoura ‘’I acquired my EGP 350. I paid 250 EGP for my medical examinations and acquired a kilo of meat for my kids with the remainder of the cash.’’ mentioned the mom in her early forties, who’s from one among Higher Egypt’s poorest areas.

Research present that there’s an rising world concentrate on social safety. This was significantly evident in 2015 when – for the primary time- social safety grew to become part of the United Nation’s world ‘’Social Improvement Objectives’’ agenda. In mild of that, present high-income nations on common spend 1.9 % of Gross Home Product (GDP) on social security web applications, whereas growing nations spend 1.5% of GDP and the Center East and North Africa area nations spend 1.1% of GDP.

It’s price noting that even inside the ongoing efforts of scaling up social safety in Egypt, the nation’s spending on this realm stays effectively beneath the regional common, this is a chance to discover prospects of additional enhancing the continuing social safety efforts. The Takaful and Karama program is part of the worldwide pattern towards larger investments in social safety and is designed and applied in accordance with worldwide finest practices of conditional and unconditional money switch applications.
Capitalizing on the Takaful and Karama database, the Ministry of Social Solidarity is linking beneficiaries to different built-in packages of social safety providers together with:

Offering meals ration playing cards, if they don’t exist for any Takaful or Karama family in cooperation with the Ministry of Provide and Inside Commerce.

“Two is sufficient’’ program, in cooperation with Ministry of Well being and Inhabitants. This system targets households who’ve two kids to cease at two, by means of availing backed entry to contraception and consciousness elevating.

The “No illiteracy with Takaful” program focuses on eradicating illiteracy for Takaful girls beneficiaries in cooperation with the Ministry of Schooling and Technical Schooling.

“Sakan Kareem” or Respectable Housing program is applied in collaboration with the Ministry of Housing, Utilities and City Communities in addition to civil society organizations specializing in enhancing residence situations for the very poor/susceptible households beneath this system; together with roofing, flooring, and water connections.

“First 1000 days program” is applied by the Ministry of Social Solidarity in collaboration with the World Meals Program. It focuses on the ‘first 1000 days of life’ of an toddler as it’s a vital interval for mind growth, physique progress and having a powerful immune system.

This system targets the well being and dietary standing of moms and infants within the underdeveloped governorates of Higher Egypt by means of offering entry to nutritious meals baskets at 94 EGP monthly and ante and postnatal care together with vitamin training and group consciousness.

The Forsa or ‘‘Alternative” program, which is presently beneath growth and targets the Takaful and Karama database. This system focuses on financial empowerment by means of various financial inclusion interventions (equivalent to job placement, asset switch, coaching, and abilities growth).

Primarily based on the success of this system thus far, the federal government is contemplating consolidation of the Takaful and Karama program to extend the operation’s efficacy by means of placing extra emphasis on implementing and monitoring training and well being conditionality to make sure that the transfers are directed to those that are actually in want. There are additionally plans to concentrate on shifting from ‘’safety’’ to ‘’manufacturing’’, which means that it’s going to work to expedite the beneficiaries’ commencement from this system by means of enabling them to generate their very own sustainable livelihoods.


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