Study abroad programs under pressure amid FX crunch + weakening EGP: Amid tough economic conditions, including rising inflation, a weakening local currency, and an FX crunch, Egyptian schools and universities are struggling to acclimate, as we reported in our year in review on the education sector. One change we could be seeing: how universities approach the once popular study abroad programs that allow students to spend a semester abroad at a partner university. As costs of these programs shoot up due to the devaluation of the EGP, demand is likely to fall while universities are considering tweaks to the programs to help keep them on the table, industry insiders tell us.

REFRESHER- The EGP has fallen by almost 70% from its 15.78 / USD level before March of last year, as the Central Bank of Egypt (CBE) took measures to shift to a “durably flexible” exchange rate in return for a USD 3 bn financial assistance package from the IMF.

What study abroad programs? The government in 2020 introduced regulations that made it a requirement — rather than a recommendation — for private universities to form academic partnerships with universities abroad that are ranked higher in global indices than the highest-ranking Egyptian university. Curriculum, degrees, and study-abroad programs were among the government’s criteria for legitimate academic partnerships. Among the programs Egyptian universities are currently offering: Future University in Egypt (FUE) is offering a summer course in 2023 at University College Cork in Ireland, as well as courses in London and Canada, FUE President Ebada Sarhan told us. The German University in Cairo (GUC) also offers semester exchange programs in its campus in Berlin, while the American University in Cairo (AUC) offers a range of exchange programs at different universities across Europe and the US.

Egyptian students ❤️ study abroad programs: University heads we’ve spoken to agree that study abroad programs have been very popular among students over the past years. Studying abroad in general has been popular among Egyptian students, which has even prompted the government to implement an internationalization strategy designed to bring international universities to Egypt and help retain Egyptian students.

The costs of the programs have skyrocketed in recent months: The costs of these programs are high to begin with, with prices ranging between USD 8-11k per semester, Tarek Abou El Maaty, former vice president of Galala University, told Enterprise. With the fluctuating exchange rate, and the fees set in USD, the costs of these programs are rising for Egyptian students paying in EGP equivalent. President of the Egyptian Chinese University (ECU) Ashraf El Shihy estimates the rise in costs of the programs since the devaluation to be roughly 50%.

Universities also have to make these payments in FX: An added challenge for universities is that students pay the fees for the program in EGP equivalent, leaving universities to take on the task of securing the necessary USD to pay the universities, which has been difficult amid an FX crunch, Abou El Maaty added.

The rising costs of flight tickets to some countries are another issue: Flight tickets to China, for example, have jumped over 150% to some EGP 50k due to the covid-19 pandemic, which has led the ECU to suspend its study abroad programs for the time being, El Shihy said.

Universities are looking into raising study abroad program fees: The board of FUE plans on looking into raising the fees associated with the program, Sarhan tells us. How this will impact student demand will be easier to gauge when we approach the summer, when the university’s programs are expected to begin, Sarhan said.

And considering offering remote learning programs in partnership with foreign universities as an alternative: ECU has already been offering remote learning options with its partner universities in China since the covid-19 crisis disrupted their programs, El Shihy said. FUE will also be providing remote learning programs with its partner universities next year — without charge — for students who will not be able to afford the costs of the study abroad programs, Sarhan said. Aboul Maaty also expects online programs to rise as an alternative, and thinks some universities could suspend these programs completely for a while in response to the spiraling costs.

This could also give rise to exchange programs with local universities: Private universities will likely look at swapping study abroad programs with exchange programs with other local universities that are internationally ranked as a way to introduce new skills to students and allow them to have diverse experiences, Badr University President Mostafa Kamal told us.

On the flipside, the weaker EGP is prompting more GCC students to flock to our universities’ doors: The weakening EGP could actually be a boon to our plans to become a hub for international students, and this is already evident through the rise of GCC students’ enrollments in Egyptian universities over the past two years, Kamal said. The devaluation makes studying in Egypt particularly cheap for GCC students, many of whose currencies are pegged to the USD and strengthening significantly over the past year.