Egyptian Investment and Foreign Trade Minister, Dr. Mohamed Fared, recently met with 57 reporters and representatives from 27 international and Arab media outlets at the ministry's headquarters in Cairo. The meeting provided an opportunity for the minister to outline the government's vision for developing the investment and foreign trade sectors. The minister emphasized that the current phase is focused on transitioning from strategy development to implementation. He highlighted Egypt's openness to receiving investments and its goal of creating an environment that can absorb new investments and support the expansion of existing companies.
During the meeting, Dr. Fared emphasized that the ministry is working on developing a comprehensive investment system based on four main pillars: facilitating business practices, localizing development and supporting small and medium-sized enterprises, targeting and promoting investment opportunities, and reducing investment risks. He noted that the government's goal is to create a productive and competitive economy that can increase production, employment, and exports. The minister also highlighted the improvement in macroeconomic indicators, including a 5.1% growth in GDP, and the government's target of reaching a 5.5-6% growth rate.
Dr. Fared discussed the government's efforts to develop the investment environment, focusing on addressing the actual challenges faced by investors. He emphasized that the government aims to simplify procedures, reduce time and costs, and integrate different agencies to provide a more efficient system. The minister also highlighted the importance of technology and legislative development in enhancing the investment climate. He mentioned that the ministry is working on amendments to the executive regulations of the Companies Law to facilitate mergers and acquisitions, company valuations, and financing tools.
The minister reviewed the government's digital transformation efforts, including the development of new platforms to improve the investor experience. He mentioned that the "Capital Increase Procedures" platform is currently in the testing phase and will be launched soon, simplifying procedures related to capital increases and connecting relevant agencies. Additionally, the "Economic Entity" platform aims to connect 92 agencies and provide services related to 486 licenses, supporting the integration of agencies and redesigning the investor journey.
Dr. Fared discussed the role of the Egyptian Sovereign Fund in reducing investment risks and mobilizing capital. He explained that the fund aims to partner with the private sector to stimulate investment in priority sectors and projects. The minister also mentioned that the fund can take minority stakes of 10-20% to reduce entry risks and encourage private sector participation. He noted that the Industrial Investment Fund has completed its establishment and is in the process of forming its board of directors, with several investment opportunities under consideration.
The minister emphasized the importance of innovation and technology in serving foreign trade, highlighting the establishment of a regulatory laboratory for trade. This laboratory aims to develop and test innovative solutions to modernize the trade system and enhance Egyptian exports. Dr. Fared also stressed the interconnection between investment and foreign trade, noting that attracting productive investments is crucial for building a production base that can serve local, regional, and global markets.
Dr. Fared concluded by emphasizing the government's commitment to a partnership with the private sector and continuous dialogue to address the challenges faced by investors. He highlighted that this partnership is essential for ensuring the effectiveness and sustainability of reforms and translating them into tangible results that support investment, production, and exports.
Key points
- Egypt's investment minister met with 27 international and Arab media outlets to discuss investment and trade policies.
- The government aims to create an environment that can absorb new investments and support the expansion of existing companies.
- Egypt has ranked first in Africa in attracting foreign direct investment for the fourth consecutive year, with $15.5 billion in inflows during the past year.
