Parliament’s Deputy Speaker Mohamed Aboul-Enein affirmed that Egypt is capable of attracting up to $30-40 billion annually in direct foreign investments (FDI) if available opportunities are utilized, calling for an increase in private investments and a clear plan to promote Egypt’s investment map.
In a speech to comment on the draft plan and the state’s general budget on Sunday, Abou El-Enein stressed the need to develop special stimulus packages to attract and localize complex industries and attract investors wishing to diversify their supply chains.
He praised the government for its quick response to the coronavirus and its success in achieving a balance between preserving the lives of citizens and the continuity of the economy, in addition to supporting the sectors and groups most affected, as well as increasing spending on education, health and rural development.
He called on the government to work on increasing domestic and foreign private investment, pointing out that the state’s plan for the next year includes investments worth EGP 1.25 trillion, which is an ‘unprecedented number’, of which the government’s share is 75%, while the private sector is only 25%.
The deputy speaker added: “If we want to reach the targeted growth rates of 6-7% annually, we need an investment rate of no less than 25-30% of the GDP, while the target in the plan is only 17.3%… We must work on Attracting more local and foreign private investments to reach the targeted investment rates.”
“Although Egypt is one of the most attractive country for FDI in Africa, the size of this investment is still modest, reaching 2.7% of GDP and 74% of it goes to the oil and gas sector, compared to 5% for industry.”
The business tycoon stressed the need to set a program to reduce investment and production costs, spreading the idea of economic zones of a special nature, and expanding participation programs between the public and private sectors in implementing infrastructure projects.
