Egypt's Investment and Foreign Trade Minister, Mohamed Farid, announced that the government is developing a new operating model for The Sovereign Fund of Egypt (TSFE) and its subsidiary funds. The goal is to expand partnerships with the private sector and mobilise investment in priority sectors. This move aims to support and attract private capital, rather than manage projects on behalf of the private sector.
The Sovereign Fund of Egypt could take minority stakes of between 10% and 20% in selected investments to reduce entry risks and encourage private investors to participate. According to Minister Farid, the Industrial Investment Fund has completed its establishment procedures and is finalising the formation of its board. The fund is currently reviewing three to four investment opportunities.
Egypt's macroeconomic indicators have improved, with GDP growth reaching 5.1%, up from 4.4%. The government is targeting growth of between 5.5% and 6%. Minister Farid attributed this growth to the economy's increasing capacity to absorb investment. He emphasised that Egypt's economic transformation focuses on expanding private-sector participation while providing the necessary tools and investment environment.
The government is working to simplify investment procedures, integrate government entities, and reduce the time and cost involved in completing transactions. The ministry is preparing amendments to the executive regulations of Companies Law No. 159 of 1981 to facilitate mergers and acquisitions, improve company valuation, and expand financing tools. Additionally, the ministry plans to strengthen dispute-resolution and agreement committees.
Egypt is also focusing on digital transformation, with the Capital Increase Procedures Platform undergoing testing ahead of its expected launch within weeks. The Economic Entities Platform aims to connect 92 government entities and provide services related to around 486 licences. Minister Farid highlighted the importance of linking investment to production and exports.
The government is shifting from broad investment promotion towards targeted outreach based on priority sectors and investment opportunities. Egypt is preparing to announce its foreign direct investment strategy, which will identify around 16 priority sectors. The updated investment map includes around 1,330 opportunities across different sectors and governorates.
Egypt attracted $15.5bn in foreign direct investment during the last calendar year, ranking first in Africa for FDI inflows for the fourth consecutive year. The government aims to build an investment system that connects capital inflows with production, exports, and regional development, while providing clearer opportunities, more flexible investment tools, and greater coordination among government entities.
Key points
- Egypt is developing a new operating model for The Sovereign Fund of Egypt to expand partnerships with the private sector and mobilise investment in priority sectors.
- The government is working to simplify investment procedures, integrate government entities, and reduce the time and cost involved in completing transactions.
- Egypt attracted $15.5bn in foreign direct investment during the last calendar year, ranking first in Africa for FDI inflows for the fourth consecutive year.
