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Dollar crisis and low FDI are the major challenges facing Egypt’s economy: Garhy - Daily News Egypt

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Dollar crisis and low FDI are the major challenges facing Egypt’s economy: Garhy

Egypt loses EGP 36bn annually due to the smuggling of textiles

Egypt is facing a number of challenges, but the most important among these challenges is the US dollar crisis and the reduction in foreign direct investment (FDI), said Mohammed Jamal Garhy, the general secretary of specialised commissions and member of the “Homeland’s Future” party.

He added that the industries sector faces various challenges, such as allocating foreign currency, product dumping, energy shortages, and the scarcity of skilled labour.

The dollar crisis was instigated due to greed, Garhy insisted, adding that this resulted in the high price of the dollar in the unofficial market, which in turn changed the prices of commodities.

He elaborated that the state has a serious desire to support and stimulate industry, but what is important is turning this desire into concrete decision-making on the ground. Launching an integrated and comprehensive industrial map contributes to helping investors make appropriate investment choices, said Garhy.

What matters to foreign investors is the availability of large market-tax incentives, accumulated industrial experience, and market opportunities, he added.

Moreover, investors are also concerned about other factors, such as security, transparency, and the continuity of laws and incentives for investment.

Garhy said that his party is involved in the National Youth Conference, which was launched Tuesday in Sharm El-Sheikh, as part of its commitment to recognizing the importance of youth. He also believes that small- and medium-sized enterprises (SMEs) are part of the solution to Egypt’s economic needs, but not the only solution, thus other sectors should not be neglected.

“We are preparing a comprehensive plan to revive tourism in the coming period. We will do our best, but in the end the return of tourism is dependent on the policies that other countries impose on Egypt,” said Garhy.

Garhy added that the prime minister’s meeting to restore the textile sector must take effective steps to solve the sector’s problems, such as smuggled goods from abroad, a phenomenon that harms local factories and the national industry.

He added that the textile industries division in the party’s industrial commission estimated the annual losses due to the smuggling of textile products to be around EGP 36bn in customs and taxes.

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