The Egyptian tertiary education is steered by a centralized system with institutions having little control on the decisions of the curriculum, program development and deployment of staff and faculty. Improving system governance and efficiency is an imperative that takes on added urgency given that a significant population bulge has reached the higher education system. The actual number of students entering higher education grew by 18 percent per year between 1992/93 and 1997/98. The consequence was a sharp decline in per student spending of around 40 percent in real terms over that period. The higher education cohort is projected to continue to increase by close to 6 percent (60,000 students) per annum through 2009. This means that significant efficiencies will need to be introduced into the system just to maintain quality at its current inadequate level. The performance and quality of higher education is currently severely compromised by overly centralized order to improve the already outdated system, rigid curriculum and teaching practices. Improving system governance and efficiency is an imperative that takes on added urgency given that a significant population bulge has reached the higher education system. The actual number of students entering higher education grew by 17 percent per year between 1992/93 and 1997/98. The consequence was a sharp decline in per student spending of around 40 percent in real terms over that period. The higher education cohort is projected to continue to increase by close to 6 percent (60,000 students) per annum through 2009. This means that significant efficiencies will need to be introduced into the system just to maintain quality at its current inadequate level.