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1. Egypt has been featured few instances within the information worldwide. The subject being addressed primarily is about financial scenario , Egyptian President assembly with the IMF and the present foreign money scenario. How do you view the scenario and what’s the message you want to give to a world viewers trying into investing within the nation?
The present financial scenario is a world matter that has affected international locations all over the world. In Egypt we’ve got been capable of entice new investments primarily in power and renewable power area and inexperienced hydrogen initiatives. We anticipate the foreign money scenario to be ameliorated by the primary quarter of the up coming 12 months.There are various causes for traders to return to Egypt and let me spotlight them:
Giant and rising market: Egypt has a inhabitants of over 105million folks, along with greater than 10 million overseas residents making it the most important market within the Center East and North Africa (MENA) area. The Egyptian economic system can also be rising steadily. This implies that there’s a giant and rising demand for items and providers in Egypt, which offers alternatives for overseas traders.
Egypt is positioned on the crossroads of Africa, Asia, and Europe. This offers it a strategic location for commerce and funding. The Suez Canal, which is likely one of the world’s busiest delivery routes, is positioned in Egypt. This offers overseas traders with entry to a big market of shoppers and companies within the MENA area, Europe, and Asia, not to mention its central time zone which makes it accessible to all international locations,
Egypt has plentiful pure sources, together with oil, gasoline, wind, photo voltaic, silicon, silica, phosphate and different minerals. This offers overseas traders with alternatives to put money into the power, mining, and manufacturing sectors.
Egypt has a big pool of low-cost labor. This makes it a lovely vacation spot for labor-intensive industries, equivalent to manufacturing and textiles.
The Egyptian authorities has carried out various financial reforms in recent times, which have made the nation extra engaging to overseas traders. These reforms embody tax credit, waivers of governmental charges, speedy approval course of, increasing free zone areas and providing offshore jurisdiction, along with enhancing the enterprise atmosphere, and strengthening mental property rights safety.
The nation presents various engaging funding alternatives. The massive and rising market, strategic location, plentiful pure sources, low-cost labor, and authorities reforms all make Egypt a lovely vacation spot for overseas traders.
Along with these elements, I want to spotlight the next the reason why Egypt is a lovely funding vacation spot:
Egypt is a steady nation with a protracted historical past of political stability. This offers overseas traders with confidence that their investments might be protected.
Egypt has a robust infrastructure, together with roads, railways, airports, and ports. This makes it simple for companies to function in Egypt and to export their items and providers to different international locations.
The Egyptian authorities has created a optimistic enterprise atmosphere for overseas traders. This contains offering tax credit, simplifying laws, and permitting incorporation of corporations with foreign exchange equivalent to Yen, USD and Euro.
I imagine that Egypt has the potential to be a significant financial participant within the MENA area and past. The nation has various engaging funding alternatives, and the federal government is making efforts to enhance the enterprise atmosphere. I’d encourage worldwide traders to think about Egypt as a vacation spot for his or her funding.
2. What are probably the most important funding alternatives in Egypt presently, and the way is GAFI working to draw overseas funding in these areas?
Inexperienced hydrogen is likely one of the greatest funding alternatives in Egypt. The nation has various elements that make it excellent for the manufacturing of inexperienced hydrogen, together with:
Egypt has a big quantity of photo voltaic and wind power, which can be utilized to supply inexperienced hydrogen.
Egypt is positioned on the Purple Sea, which supplies it entry to worldwide markets for inexperienced hydrogen.
The Egyptian authorities is supportive of the event of the inexperienced hydrogen business and has provided various incentives to traders.
On account of these elements, Egypt is seen as a possible hub for the manufacturing of inexperienced hydrogen. The federal government has set a goal of manufacturing 100,000 tonnes of inexperienced hydrogen by 2030, and there are a variety of initiatives already underway to realize this objective.
I want to point out that the Indian firm Renew Power Restricted.the primary Indian firm to signal an settlement for inexperienced hydrogen manufacturing within the Suez Canal Zone in Egypt and there are different Indian corporations already trying the inexperienced hydrogen and inexperienced ammonia manufacturing in Egypt
A number of the prime funding alternatives in inexperienced hydrogen in Egypt embody:
Electrolyzer manufacturing: Egypt has the potential to develop into a significant producer of electrolyzers, that are the gadgets used to supply inexperienced hydrogen. There are a variety of corporations already investing on this sector, and it’s anticipated to develop quickly within the coming years.
There’s a want for funding in infrastructure to assist the manufacturing and transportation of inexperienced hydrogen. This contains the event of ports, pipelines, and storage services.
General, inexperienced hydrogen is a promising funding alternative in Egypt. The nation has the potential to develop into a significant producer of inexperienced hydrogen, and there’s a robust authorities dedication to supporting the business. In case you are searching for an funding alternative with long-term progress potential, then inexperienced hydrogen in Egypt is value contemplating.
Manufacturing of house home equipment, vehicle business, tourism associated initiatives, agribusiness together with farming, fisheries and animal feedstock. Along with centered pharma manufacturing for bio pharma and efficient materials manufacturing, particular focus is given to well being care and academic providers as properly.
Topping all sectors, Egypt’s strategic location presents immense alternatives within the logistics and transportation sector.
3. Are you able to inform us about any main funding initiatives that GAFI has lately facilitated in Egypt, and what advantages these initiatives convey to the nation and its folks?
Yazaki is a number one Japanese automotive parts producer. In 2022, the corporate introduced plans to speculate $20 million in a brand new manufacturing facility in Egypt. The manufacturing facility will produce braided wires for vehicles, and is predicted to create 3,000 jobs.
The Egyptian authorities has offered important assist for Yazaki’s funding. from that date the corporate confirmed the curiosity in exploring the potential of Egypt until the mission is realized
The federal government’s assist for Yazaki’s funding is a part of its broader technique to draw overseas funding and enhance the automotive business in Egypt. The federal government believes that Yazaki’s funding will assist to create jobs, enhance exports, and entice different overseas traders to Egypt.
The Yazaki funding is a big enhance for the Egyptian automotive business. The manufacturing facility is predicted to supply 100 million euros value of exports yearly, and can assist to create a brand new provide chain for the automotive business in Egypt.
The federal government’s assist for Yazaki’s funding is an indication of its dedication to attracting overseas funding and boosting the automotive business in Egypt. The funding is predicted to have a big optimistic impression on the Egyptian economic system.
Scatec has partnered with Fertiglobe, The Sovereign Fund of Egypt and Orascom Development to develop, construct, personal and function a 100 MW inexperienced hydrogen manufacturing facility in Ain Sokhna in Egypt. When the mission is absolutely developed the ability might be powered by 260 MW of photo voltaic and wind capability. The inexperienced hydrogen might be used as feedstock for manufacturing of inexperienced ammonia.
Haier which is main worldwide firm working within the area of house home equipment (air conditions-washing machines- and fridges), is intending to ascertain an Industrial advanced in tenth of Ramadan with Complete Investments 130 million US$.
4. What steps has GAFI taken to enhance the funding local weather in Egypt and handle any challenges that traders might face?
The Authorities of Egypt has taken collection steps to enhancing the funding atmosphere and make it extra conducive, on prime of which, the issuance of the New Funding Regulation 72 for 2017 which launched many incentives and Ensures to the traders. Including to that legislative, monetary, and institutional reforms which contributed in streamlining procedures, eliminating purple tape, and made the enterprise atmosphere extra pleasant.
Alternatively, It’s value to say that the supreme council of funding chaired by president Abdelfatah ElSisi issued essential resolutions which we imagine shall enhance the overseas direct funding in Egypt and improve the funding and enterprise local weather in Egypt. On the highest of such resolutions is the modification of the funding regulation to permit the institution of the offshore corporations in Egypt and permitting the providers actions (equivalent to monetary providers, insurance coverage, consultancy corporations, information centres, outsourcing, startups, ICT hubs, regional places of work.. and so forth.) to work in Egypt by way of non-public free zone regime which is a tax heaven because it shall be exempted from tax, VAT and customs.
Along with the above, the resolutions of the supreme council contains minimizing the instances for approvals granted for overseas traders to 10 days solely, establishing a unit within the cupboard for enhancement of the echo system for startups and entrepreneurs, and amending funding regulation to permit power intense consumption initiatives to work as free zones corporations in Egypt.
5. How does GAFI work with different authorities businesses and stakeholders to make sure a coordinated and efficient strategy to funding promotion and facilitation?
GAFI’s work with different authorities businesses and stakeholders is ongoing and evolving. As Egypt’s funding panorama adjustments, GAFI will proceed to adapt its strategy to make sure that it’s efficient in selling and facilitating funding within the nation.
GAFI works with different authorities businesses and stakeholders to make sure a coordinated and efficient strategy to funding promotion and facilitation in various methods, together with:
GAFI is a member of the Supreme Funding Council, a high-level physique that brings collectively representatives from governmental businesses, the non-public sector, and civil society. The council is an integral a part of the continued reform program adopted by the Egyptian authorities to spice up investments and financial progress within the nation and has a direct impression on funding promotion and facilitation efforts.
GAFI maintains common communication channels with different authorities businesses and stakeholders to share info and coordinate actions. This contains taking part in joint conferences, workshops, and conferences.
GAFI works with different authorities businesses and stakeholders to develop joint initiatives that promote funding in Egypt. This contains creating funding promotion methods, organizing funding roadshows, and offering assist to traders.
GAFI shares sources with different authorities businesses and stakeholders to make sure that they’ve the knowledge and instruments they should promote funding in Egypt. This contains sharing information on funding alternatives, offering coaching on funding promotion, and facilitating the connection between traders and companies.
GAFI works to construct consensus amongst authorities businesses and stakeholders to the very best practices of funding promotion and facilitation. This contains partaking in dialogue and session to make sure that all stakeholders are represented and that their views are taken into consideration. By working with different authorities businesses and stakeholders, GAFI is in a position to make sure that Egypt has a coordinated and efficient strategy to funding promotion and facilitation. This strategy is important to attracting and retaining funding in Egypt, and to selling the nation’s financial growth.
6. What’s GAFI doing to advertise innovation and entrepreneurship in Egypt, and the way does this assist the general funding technique of the nation?
GAFI is dedicated to selling innovation and entrepreneurship in Egypt, and has various initiatives in place to assist this objective. A number of the methods during which GAFI is selling innovation and entrepreneurship in Egypt embody:
GAFI offers monetary assist to startups and entrepreneurs by way of various packages, together with the Fekretak Sherketak (Your Concept, Your Firm) program. This program offers monetary assist, coaching, and mentorship to startups.
A everlasting unit has been established, headed by the CEO of the Common Authority for Funding and Free Zones, with membership from related entities. This unit is specialised in proposing insurance policies, legal guidelines, and laws appropriate for the expansion and prosperity of startups in Egypt. The unit has established a set of mechanisms that function sub-objectives, that are as follows:
1. Partaking with entrepreneurs and startups to obtain their challenges, proposals, and concepts, to be able to develop appropriate options by way of modifying regulatory procedures and legal guidelines that align with the character of those initiatives.
2. Making a platform affiliated with the unit that encompasses all details about the entrepreneurial and startup ecosystem in Egypt.
3. Constructing capability and offering technical assist to entrepreneurs, startups, and supporting entities.
Offering technical help: GAFI offers technical help to startups and entrepreneurs by way of various packages, together with the Technopreneur ship program. This program offers coaching and mentorship to entrepreneurs who’re creating technology-based companies. Creating a good regulatory atmosphere: GAFI is working to create a extra favorable regulatory atmosphere for innovation and entrepreneurship in Egypt. This contains streamlining the funding approval course of, lowering the variety of required licenses and permits, and offering tax incentives for startups and entrepreneurs. Selling collaboration between companies and universities: GAFI is selling collaboration between companies and universities to foster innovation and entrepreneurship. This contains offering funding for university-based incubators and accelerators, and organizing occasions to convey collectively companies and universities. Egypt Ventures – the primary enterprise capital firm with authorities investment- as a enterprise capital fund operates below the umbrella of GAFI
These initiatives are supporting the general funding technique of the nation by creating an atmosphere that’s conducive to innovation and entrepreneurship. Innovation and entrepreneurship are key drivers of financial progress, and GAFI’s initiatives are serving to to create a extra entrepreneurial Egypt.
Along with the initiatives talked about above, GAFI can also be working to advertise innovation and entrepreneurship by way of various different channels, together with:
Working with worldwide organizations: GAFI is working with worldwide organizations, such because the World Financial institution and the United Nations, to share greatest practices and develop new initiatives to advertise innovation and entrepreneurship. Offering info and sources: GAFI offers info and sources to startups and entrepreneurs by way of its web site and different channels. This info contains info on funding alternatives, regulatory necessities, and enterprise growth sources. Constructing a neighborhood: GAFI is constructing a neighborhood of startups and entrepreneurs in Egypt. This contains organizing occasions, meetups, and on-line boards to attach startups and entrepreneurs with one another and with potential traders.
GAFI’s work to advertise innovation and entrepreneurship is making a big contribution to the Egyptian economic system. By creating an atmosphere that’s conducive to innovation and entrepreneurship, GAFI helps to create a extra entrepreneurial Egypt that’s higher positioned to compete within the international economic system.
7. India chaired the G20 this 12 months 2023 holding main occasions on the political and financial features. We additionally witnessed important rising relations between India and Egypt on varied degree with the twenty seventh WAIPA convention is being held presently. How do you view relations between each international locations and what’s Egypt’s imaginative and prescient for reinforcing mutual relations with India particularly the sphere of funding?
This 12 months has been certainly a promising 12 months for India- Egypt relations on many features. Firstly of 2023 Egyptian President H.E Mr. Abdel Fattah El Sisi has been invited because the official visitor by H.E Prime Minister of India Mr. Narendra Moodi for the India Independence Day celebrations. This go to was adopted by Mr. Moodi’s official go to to Egypt final June to proceed strategic talks on many ranges.
President Abdul Fattah El Sisi was invited to the G20 summit as Egypt was the visitor of honor.
These fruitful occasions led to rising urge for food for main Indian traders to discover funding alternatives in Egypt in renewable power and infrastructure fields most like Adani Group.
All through the years, Egypt valued relations with India particularly enterprise ones as we’ve got greater than 50 main Indian traders with greater than 3 billion USD investments within the fields of chemical and petrochemical industries, textile and prepared made clothes, meals processing, and ICT.
Present Indian traders are thought-about as success tales in Egypt like TCI Sanmar, Flex Movies, and plenty of others who belief the Egyptian market and increase their enterprise.
Just lately we’ve got witnessed Indian corporations coming into inexperienced hydrogen and inexperienced ammonia manufacturing area as talked about to profit from the benefits provided by the Egyptian market additionally Tech Mahindra within the ICT area. GAFI has and all the time might be eager to observe up with Indian corporations working in Egypt and by focusing on extra Indian investments
In very important fields. We obtained Indian delegations who’re involved in renewable power, ICT, textile , engineering and automotive, and plenty of different fields.
We’re dedicated to work with our Indian counterparts and welcoming many traders – massive corporations and rising startups – from India to return to Egypt. Subsequently 2023 is the start of stronger Egypt and India funding relations.
8.What are your expectations and major priorities within the quick time period?
FDI, Exports and localization are on prime of the political agenda, and regardless of the shortage problems with the overseas alternate financial challenges, Egypt presents large funding alternatives and stays a key funding vacation spot in Africa and MENA area
GAFI is strengthening its efforts to draw FDI’s and promote exports. A number of measures and initiatives had been taken:
– Amendments to free zones laws by streamlining the institution of Non-public Free Zones and introducing a brand new kind of free zone generally known as Offshore Non-public Service Free Zone.
– Dedication to enhance funding local weather, resolve traders’ points and addressing traders’ issues
Holding sectoral boards with completely different stakeholders from the business to get insights and suggestions.
Establishing a everlasting unit on the cupboard to resolve traders’ issues.
– Up to now 21 corporations had been granted the Golden License, and we’ve got an bold plan to succeed in extra initiatives.
– Commonly updating the accessible funding alternatives on Egypt’s funding map and digitizing and automating providers offered to traders.
