Egypt

Egypt's economic program aims to sustainably address macroeconomic vulnerabilities and promote private-sector-led growth and job creation. Speedy progress on structural reforms is critical to tackle longstanding fiscal and external vulnerabilities as well as to strengthen Egypt's resilience and medium-term growth prospects. Reforms to increase the role of the private sector in the economy, guided by the governments' State Ownership policy, focus on the gradual exit of the public sector from non-strategic sectors, leveling the playing field between state-owned entities and private companies, removing barriers to trade, and enhancing transparency and governance in the public sector. The Government of Egypt's Sustainable Development Strategy Vision 2030 aims for seven percent real growth, a 30 percent average investment rate, a 25 percent contribution of exports to GDP, and a five percent unemployment rate.

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Agribusiness

Background

In FY15/16 Egypt’s agricultural base accounted for 12% of GDP and employed around 33% of the workforce.
Egypt’s main products are cereals, fruits and vegetables, sugar, cotton, dairy products, livestock, and fish.
Egypt’s climate is well-suited for the growth of this subsector, with hot and sunny summers being conducive to high yields. In fact, winter crop cultivation is possible from November to May.
Egypt’s food processing industry is at a far more advanced stage of development, product sophistication and exporting experience compared to many neighboring competitor locations states.
An expanding population and rising disposable incomes will stimulate demand for soft drinks, sweets, chocolates and confectionary goods.
The government targets the expansion of the nation’s total supply of arable land by one-sixth (by the end of 2018).

Relevant Institutional and policy enablers

The government is working to ease the conduct of business for the private sector in this sector.
In progress is a key advancement for the sector: establishment of a vast database to provide precise information for state agricultural planning and design purpose (size of land holdings and the types of cultivated lands).
Improved irrigation techniques will deliver a boost over the medium term.
Establishment of the National Safety Authority which will help improve food quality standards.
Introduction of smart cards for more efficient subsidization of farmers.

Specific investment opportunities

Storing and Freezing Fish Project, Aswan.
Edible Oil Extraction Project, El Menya.
LACTIMED, Alexandria and Beheira: first SME cluster in Egypt in Dairy Production and Dairy products aims at promoting Egypt's high potential in dairy sector, as well as attracting new investments to this promising field.
Establishment of Poultry Farms Complex, Fayoum.
Fish Farm, Menoufia.
Kom Oshim Industrial Zone, Fayoum
 

Infrastructure and Logistics

Background

Egypt has an extensive, world-class infrastructure network that includes various means of newly established or renovated transport methods.
Heavy investments in infrastructure, such as the New Suez Canal Economic Zone, Egypt’s New Capital City, Al Alamein City and the expansion of the national road network, which has and will continue to facilitate internal transportation and trade.
Egypt’s industrial infrastructure and bold future initiatives have set the tone for continued exponential growth in manufacturing and export-led growth.
Egypt's ranking in the World Bank's Logistics Performance Index leaped from 97 out of 150 in 2007 to 49 out of 160 in 2016.

Relevant Institutional and policy enablers

The government is investing in basic infrastructure in order to create a stable and predictable business environment, while the private sector is being increasingly empowered and encouraged to resume its leading role in driving economic growth.
The government aims to improve the efficiency and development of the entire transport network to support economic development and improve the standard of living of the Egyptian people.

Specific investment opportunities

Production of Copper Cables, Sohag.
Implementation of the industrial zone plan in Kota, Fayoum.
Construction of a monorail network, Alexandria.
Manufacture of silos for Grain Storage, Menya.
Expand basic infrastructure including the broadband network, submarine cables and cloud computing infrastructure.
Desalination plants project using PPP, especially in the Suez Canal Economic Zone.
Modern River Transport Ports, Qena, Sohag, Assiut Mit Ghamr.
Railway Freight Corridor.

Renewables and Efficient Energy Generation

Background

Egypt is a large producer, consumer, importer, and exporter of energy and electricity.
Largest non-OPEC oil producer and second largest natural gas producer in Africa. Oil and gas sector is witnessing transformational changes in light of the newly discovered natural gas fields that would make Egypt reach self-sufficiency with regard natural gas by end of June 2018.
Average level of solar radiation of between 2,000 to 3,200kWh per square meter a year, and a total annual sunshine duration of up to 4,000 hours giving it significant potential for utilizing this form of renewable energy.
Egypt is already producing almost 57% of the region’s total wind energy, making it the leading producer.
Egypt has a logistical advantage in biodiesel production: with a competitive labor force, a stable and hot climate to facilitate plant growth, and an abundance of affordable land for plant production.

Relevant Institutional and policy enablers

Subsidy reforms program, already yielding savings of 3.3% of GDP. A five-year energy subsidy reform program started in 2014. It includes the phasing out of fuel, improving service delivery. A major goal is to secure efficient, reliable and clean energy supply.
Development of an extensive energy sector modernization action plan based on three pillars: security, sustainability, and governance.
New unified electricity law cutting red tape to encourage private sector investment.
Feed-in Tariff Scheme to provide incentives for investors to own lands needed for renewable energy projects with the usufruct system: 20 years for wind and 25 years for solar.
Electricity produced through renewable energy stations has priority access to the electricity grid.
Credit facilitation with 4% interest for domestic projects that has production capacity till 200 MW and 8% credit finance for projects with production capacity between 200 -800 MW.

Specific investment opportunities

Egypt is targeting to supply 20% of generated electricity from renewable sources by 2022, with wind providing 12%, Hydro power 5.8%, and Solar 2.2%.
Manufacturing and Assembly of Solar Cell Panels, Qena.

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Information and Communication Technology

Background

Leading global outsourcing destination as the leader in the MENA region and 16th worldwide on A.T. Kearney’s 2016 Global Services Location Index (GSLI).
A vast youth population coupled with rapid internet diffusion (111%), with a large and growing ICT consumer base.
Egypt is a regional leader in the provision of ICT outsourcing and business processing.
Key global and domestic players: Huawai, Intel, Orange, Vodafone, Orange, Telecom Egypt and Etisalat
The country is heavily investing in skills development and talent management.
Egypt has invested in developing world class infrastructure facilities, including dedicated BPO/ITO parks; Smart Village and Cairo Technology Park in Maadi.

Relevant Institutional and policy enablers

The National Telecom Regulatory Authority (NTRA) granted the Fourth Generation (4G) mobile service license to the four Egyptian telecoms and the service was launched in September 2017.
Next Technology Leaders: an initiative to qualify 16,000 Egyptian youths in ICT fields through online and interactive collaboration with MNCs, Egyptian universities, and learning institutions.
The government is working on deregulating the business environment as part of its New Investment Plan.
Establishment of the National Council for Payments which facilitates the automation of government services and the introduction of e-payments.

Specific investment opportunities

The government of Egypt is eager to establish technology zones across the nation to provide a supportive environment for the development of the national ICT industry, and boost Egypt’s reputation as a provider of world-class ICT and outsourcing services.
E-commerce development.
Development of infrastructure and provision of integrated communication services.
Government focus on facilitating and enhancing electronics design and manufacturing.
Business outsourcing.