Amidst a landscape of evolving economic refor\ms and regional uncertainties, Egypt remains a key player in the Middle East and North Africa (MENA) region. In this exclusive interview, Todd Wilcox, CEO and Deputy Chairperson of HSBC Bank Egypt, provides valuable insights into the bank’s vision for the Egyptian economy, highlighting growth opportunities, navigating potential pitfalls, and outlining HSBC’s pivotal role in fostering foreign direct investment (FDI) and sustainable economic development.
What is the bank’s vision of the Egyptian economy at present and its growth opportunities?
We hold a positive and balanced view on Egypt’s economy, recognizing both the promising opportunities and the challenges ahead. The country has demonstrated remarkable resilience, driven by its economic reform programme and diversifying efforts. These initiatives have laid the right foundations for future growth, particularly in sectors like manufacturing, energy, infrastructure and technology. Egypt’s strategic location, young and skilled workforce as well as its focus on attracting foreign direct investments are key strengths.
In terms of growth potential, significant opportunities exist in renewables, the digital economy and manufacturing. Egypt’s push toward green energy, including solar and wind, makes major advancements. This not only reduces dependence on energy imports but also opens up new investment avenues. Additionally, the digital economy is rapidly evolving supported by a thriving startup ecosystem and a growing emphasis on innovation.
That said, the ongoing regional tension has undoubtedly introduced a layer of pressure on the country’s economy. This tension could potentially weigh on Egypt’s tourism and Suez Canal revenues both of which are critical to its economic health. However, the country’s efforts have helped mitigate some of these risks and the country remains a key player in navigating these challenges.
Of course, there are other challenges to keep an eye on. Inflation, foreign currency sustainable adequacy and high interest rates are still concerns, as they could affect investor confidence in the near term. Managing public debt will also be critical to ensuring long-term stability.
Despite these hurdles, Egypt’s commitment and proven track record to reform and its regional and global partnership inspire confidence in its future trajectory. With continued investment and effective policies, Egypt is well-positioned to achieve growth ambitions and solidify its role as a major economic player in the region.
What are the economic sectors that the bank believes have strong growth opportunities in the coming period?
When we look at Egypt’s economy, there are several sectors we believe have a strong growth potential in the coming period and I’d say a few really stand out for us.
First, we are very optimistic about manufacturing and exporting, particularly in sectors like textiles, automotives, electronics, home appliances and many others. Egypt has the potential to play a very critical role as well on this front, thanks to its location and the various trade agreements in place. There’s also been a focus on improving infrastructure, which can boost industrial growth and make Egypt more competitive globally.
Also, renewable energy as I mentioned in my answer to the previous question. Egypt is making great strides in solar and wind power, this is an area where we see a lot of opportunity for both local and foreign investors. The government’s commitment to green energy aligns with the global trends towards sustainable infrastructure. We are already seeing muchinterest from foreign investors and also many of our clients.
Another sector is the digital economy. There is a strong entrepreneurial spirit here, and Egypt’s young, tech-savvy population is driving growth in areas like fintech, e-commerce and digital services. With the increasing push for digital transformation across various industries, we think this sector could become a real game changer for the country’s economy in the near future. Egypt can also act as a regional hub which could drive broader economic development across multiple sectors.
Recognizing this potential, the bank has been very proactive on this front being the first to introduce a dedicated lending initiative for technology entrepreneurs providing them with innovative financing solutions and working capital facilities to support the digital transformation and the industries driving the new economy.
Finally trade, given the strategic importance of the Suez Canal and the Suez Canal Economic Zone. Egypt’s efforts to develop the SCzone into a major industrial and logistic hub are set to attract substantial FDIs. The ScZone offers a prime location for international companies looking to access not only the Middle Eastern markets but also Asia, Europe and Africa. With the government actively promoting investment-friendly policies in the zone and more broadly, we anticipate that it will become a magnet for industries like manufacturing, logistics and energy.
What role does the bank play in serving the Egyptian economy?
HSBC has had a longstanding presence in Egypt for 43 years, during which we have played a vital role in bringing the best of HSBC globally to position itself as a key thought partner of the Egyptian Government to attract Foreign Direct Investment (FDI), leading in ESG and Sustainable finance transactions and Digitization.
We have been at the forefront of event business with the government and financial institutions and have supported landmark transactions across Debt Capital Market and Export Finance including outbound and ESG business.
In today’s global economy, the ability to connect across borders is crucial for businesses and individuals alike. By leveraging our global network and strong regional presence in the Middle East, we have been able to connect our Egyptian clients to opportunities worldwide, while also helping global investors tap into the significant potential that Egypt offers.
During 2024, HSBC has engaged in a number of activities to support the Egyptian Government in attracting FDI, as we signed a Memorandum of Understanding with the General Authority for Investment and Free Zone (GAFI) to support the Egyptian Government with its strategy to attract more FDIs to Egypt, this agreement follows GAFI’s successful mission with HSBC to Singapore and China which underscored how highly investors regard the opportunities that exist for them in Egypt.
We also focused on supporting Chinese multinational investments and fostering strong partnerships between Chinese businesses and the government. We have taken a unique approach in this space, becoming the first and only bank in Egypt to offer a native Mandarin-speaking relationship manager who provides dedicated support and strategic planning to our Chinese clients.
Throughout 2024, we have seen remarkable growth in this corridor, with a significant increase in average assets and deposits, much of which is tied to new FDIs. Our focus has been proactively monitoring new investments coming from China and engaging with potential entrants early, offering them in-depth insights into the market and improving transparency to help them make informed decisions.
Egypt is one of HSBC’s most vibrant and dynamic markets, with a business foundation rooted in decades of dedicated support to our customers and the country’s strategic agenda.
Could you provide more details about the recent conference that you organized in the UK to attract FDI into Egypt?
HSBC held the Egypt – UK Investment and Opportunities Forum in London during Sept’24, which is an initiative by HSBC, UK Export Finance and the Egyptian-British Chamber of Commerce to foster and strengthen cross-border activity between the UK and Egypt. The conference showcased investment opportunities in Egypt across different sectors — including renewable energy, water, automotive, food processing, IT, and AI — to potential investors from the UK. It also helped connect institutions of both countries, bringing together government representatives, business leaders and senior executives.
The event featured presentations by GAFI’s head Hossam Heiba on supporting a sustainable investment climate, SCZone head Walid Gamal El Din on the economic zone’s investment proposition, and Advisor to the Vice Finance Minister Nevine Mansour on economic reform. The presentations were followed by two panel discussions with large local and international companies — the first of which discussed Egypt’s growth potential and infrastructure and the second focused on investment opportunities and success stories.
During the same visit, we organized a roundtable for the Minister of Finance with 18 institutional investors and 3 bilateral meetings were held for the Deputy CBE governor with investors.
One day after the Forum took place in London, a senior delegation from the bank visited France to update French corporates on the improving economic situation and discuss potential investment opportunities in Egypt.
The interest we have seen from clients and global investors in the different international roadshows we have organized underscores how highly they regard future opportunities in Egypt. This year’s delegation is very important as it is an opportunity to consider Egypt’s economic reform programme in view of evolving global circumstances and to support the government’s ambitions to attract more foreign direct investment.
What are the most prominent sectors that the bank targets in terms of financing in the new year?
For years now our strategy has been quite clear: we aim to be the leading international bank in Egypt.
We are the go-to bank for multinationals, continuously providing our clients with innovative, world-class solutions.
A big part of this growth in Egypt is digitization, which is crucial to the country’s economic development. We have a digital offering that’s unmatched and we are looking for ways to enhance this offering. For instance, this year we successfully rolled out Instant Payment services for corporates after the successful launch of personal accounts where 70% of our clients already registered on the platform. Now our corporate clients can process payments instantly 24/7, 365 days a year through our global digital platform. This has greatly improved operational efficiency and cash management for our clients.
As a testament to our digital capabilities, our client Imerys has been awarded “Best in Class Treasury Solution in Africa” by the Adam Smith Awards in 2024, for the full treasury transformation solution, where HSBC showcased its digital capabilities and innovative solutions and was mandated the deal to be subject’s main Treasury and Banking partner. The Adam Smith Awards are recognized as the industry benchmark for best practice and innovation in corporate treasury.
HSBC has strengthened its position as the leading sustainable finance bank in Egypt, delivering innovative transactions, expanding ESG-linked financing solutions, and driving systemic change across key industries across all lines of business.
As Egypt continues its transition to a more sustainable and inclusive economy, HSBC stands at the forefront, supporting businesses, institutions, and policymakers with market-leading financing solutions in sustainable finance. Through strategic leadership, HSBC is not only financing Egypt’s transition but also shaping the future of sustainable finance in the country.
HSBC continues to achieve new milestones in the market, with the number of sustainable finance transactions in Egypt increasing by approximately 27% during 2024.
We also have one of the HSBC Global Service Centers right here in Egypt, which is the only one within the Middle East region. The centre serves more than 42 different countries and 4 regions with a number of Centers of Excellence for trade and cash management.
The Trade Centre of Excellence executed thousands of transactions in the days immediately after Egypt adopted a flexible exchange rate. Having the dedicated Center of Excellence for Trade here was a real advantage in ramping up processing volumes and speeds to ensure that clients’ supply chain requirements were met as market conditions changed.
We have been named Best Bank for Diversity and Inclusion in Egypt at the Euromoney Awards for Excellence 2024, which demonstrates our commitment to creating an inclusive business that supports diverse groups in both our workplace and the wider community.
One element of the bank’s award entry was HSBC Egypt’s support of an innovative programme with the Global Fund for Widows which has helped 1,000 widows build their own businesses. The partnership was a central part of how HSBC marked 40 years of doing business in Egypt and identified a way to support an important segment of society while helping Egyptian widows take their first steps to becoming entrepreneurs. This award not only honours the work of HSBC Egypt but also serves as a reminder of the collective impact we can achieve when we come together to create a more inclusive and equitable world.
Our consistent results year after year really reflect the strength and resilience of our business here in Egypt.
