Executive Summary

This paper proposes practical options for extending sustainable social protection to refugees and asylum seekers (RAS) in Egypt by leveraging Takaful and Karama (TKP), Egypt’s flagship poverty-targeted cash transfer program. Drawing on a desk review and 16 key-informant interviews, it argues that moving from fragmented humanitarian assistance to predictable, development-oriented support is feasible and necessary, provided reforms protect poor Egyptians, remain fiscally credible, and strengthen social cohesion. Two implementable designs are assessed: (i) phased inclusion of eligible RAS into TKP through district pilots and gradual benefit harmonization under transparent poverty-targeting rules; and (ii) a ring-fenced “TKP for Refugees” (TKP4R) window that uses TKP delivery systems (targeting, payments, management information systems, and grievance mechanisms) but maintains separate financing and accounting to safeguard resources for Egyptian beneficiaries. The paper outlines governance and multi-year financing required to operationalize either option.

Key Findings:

RAS numbers are rising and concentrated in cities; households face affordability, food insecurity, and documentation barriers.

Short residency validity, issuance/renewal delays, and limited administrative recognition of UNHCR documentation impede services, mobility, and KYC compliance.

Complex work-permit pathways and limited formal hiring push many RAS into informal work, raising exploitation risk.

TKP has a mature delivery infrastructure, yet benefit adequacy has been eroded by inflation, and coverage gaps for poor Egyptians persist.

Inclusion is feasible if paired with clear institutional roles under the evolving asylum framework, phased harmonization, accessible grievance redress, monitoring, and credible communications.

Policy Recommendations:

Government of Egypt: The Ministry of Interior should improve residency-permit reliability (align validity with physical issuance; reduce backlogs via service standards). The Standing Committee for Refugee Affairs (Law No. 164/2024), coordinated by the Cabinet/Prime Minister’s Office and UNHCR, should operationalize executive regulations clarifying refugee status determination roles and standardizing administrative use of UNHCR documentation for defined functions (including KYC/program administration), with safeguards. The Ministry of Social Solidarity, with the Ministry of Finance and the Ministry of Planning and Economic Development, should implement TKP pilots and a published benefit-harmonization schedule and/or establish ring-fenced TKP4R on TKP rails with dashboards and routine reporting. The Ministry of Manpower (with ILO support) should streamline sector-based work permits and pilot apprenticeships/time-bound employer incentives. The Central Bank of Egypt should enable tiered KYC to expand access to mobile money and basic banking.

International partners: The World Bank/IFIs, EU, and major donors should establish multi-year, results-based co-financing with the Ministry of Finance/Ministry of Social Solidarity, including independent verification and inflation-responsive adequacy top-ups, and scale concessional “jobs compacts” tied to verified formal employment.

UN agencies/NGOs, regional, and private actors: UNHCR/WFP/UNICEF and NGOs should align cash with TKP/TKP4R where feasible, maintain targeted top-ups, and adopt safeguarded referral/data protocols with Egyptian counterparts. Relevant OIC bodies and major Zakat/Awqaf institutions should channel Islamic social finance through auditable, Sharia-compliant arrangements (e.g., TKP4R) with UNHCR’s Refugee Zakat Fund. Employers and regulators, led by the Ministry of Manpower, Ministry of Finance, and Central Bank of Egypt, should pilot compliant hiring pathways and proportionate financial access under tiered KYC.

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