(DNE file photo)
Egypt’s investment environment requires several stimuli, including a bankruptcy law, High Investment Council, and a “one-stop shop” system, according to General Authority for Investment and Free Zones (GAFI) Chairman Hassan Fahmy.
Fahmy said that Egypt’s investment climate requires substantial modifications, including worker training, which will increase efficiency in the future.
According to Fahmy, the volume of foreign investment two months prior to the conclusion of fiscal year 2013/2014 amounted to $4.7bn, while the government hopes for foreign investments to grow to pre-2009 figures of over $13.2bn.
He believes that the Egyptian market is attractive for investments in light of both its magnitude and the presence of political stability.
Fahmy asked that investment be incentivised in the future by removing the entanglement between relative parties, bureaucracy, and red tape.
Minister of Planning and Administrative Reform Ashraf El-Araby said that investment rates are currently in decline with a drop from 22% in 2008 to 14% at present. These are dangerous indicators, he said.
El-Araby explained that investment rates for countries that achieve sustainable growth must be no less than 35%.
He added that Egypt is growing at half of its normal rate of 5%.
Investment Minister Ashraf Salman stated that poverty rates have risen by 7% over the past three years.
Poverty rates in Egypt stand at 26% and reducing this rate by 1% requires investments of EGP 150bn.
