CAIRO: Addressing the country’s most influential business leaders present at the American Chamber of Commerce board elections, Prime Minister Ahmed Nazif gave an enticing recipe for growth with competitiveness, innovation and social responsibility at the heart of its main ingredients.
“On the economic front, we continue to do well. . Our economy is surprising us and will continue to surprise us, said Nazif. “Our GDP stands at 7.2 percent, and we expect it to reach 7 percent [or more] by the end of this year. This is a very important indication that this economy is not stagnating anymore.
He explained that the Egyptian economy is geared up for more progress and development. “Egypt has gained confidence from the international community. He specifically referred to the ever-growing US-Egyptian commercial and trade relations which increased from the previous $2 billion figure to hit a record of $6.3 billion by the end of 2006. And the figure is expected to mount to $9.5 billion this year.
“Our economy continues to shift gear; and if we sustain the kind of growth that we had over the last years, we’ll be able to make it, he added. “Ours is a business environment that is a catalyst for growth. We have the resources, human capital, and the opportunities.
Still, there is a long and winding road ahead of Egypt to assertively position itself on the map of development.
“There are challenges that we must face; some are of global nature and others are very specific to Egypt, Nazif pointed out. “Today the world is being challenged in its peace and security. We see conflicts – based on sectarian and religious differences – that are very difficult to solve. We see conflicts that are deterring growth, inhibiting growth and sometimes destroying growth.
Egypt, he said, has made progress on the political, social and economic fronts, but local, regional and international conflicts are major hurdles that threaten to swerve the country away from its route towards growth.
“Look at our own growth today; it’s a growth that is surprising us. But what if this growth was happening without the ongoing conflicts?
However, the ever-positive Prime Minister sees challenges as an opportunity to change.
One of these challenges is a bloating inflation rate. “As we grow, we experience some inflation. We’ve set a target rate between 6-8 percent, a rate that will enable us to grow, he clarified.
In December 2005, Nazif said, the government succeeded to bring inflation rate down. However, in light of the avian flu crisis, it peaked to 12.7 percent. Currently, it hangs around the 11 percent figure. “We continue to keep an eye on our inflation rate because part of our growth is to ensure that real income is growing.
Another major challenge is to create a balance between market forces and limited-income citizens. The real-estate market, in particular, has been subject to a spiral of prices driven by market forces.
“We often see investors coming and buying land at unusual prices, and most of this land is for luxury use. So, what the government is trying to do is provide [cheap] land to investors to build homes for middle/limited income people.
Quite recently, the government provided land at LE70 per sq. meter to make homes for this segment of the society. “[Besides], mortgage finance has started to gain momentum on the market, and we expect growth in that sector to reach 25 percent.
He specifically called for the business community to take part in creating a better Egypt.
“You’ve long asked us to deliver. We’re now delivering, but we want to ask you to deliver, as well, he said addressing business leader. “You will have to engage and do your part if you want to compete.
To be competitive, he explained, corporations have to focus on quality, innovation and human resource development. “We also need to increase our intellectual property capital and own more intellectual property rights to ensure that we can export to the world.
In terms of corporate social responsibility, Nazif stressed the need to share wealth to gain more wealth and success. “The society needs you to give them a hand so that we raise the business leaders of tomorrow. We need to work together, to export, to invest, to make Egypt a good place for every Egyptian.
