Egypt looks forward to attracting more US direct investments, Prime Minister Mostafa Madbouly said on Thursday. The total US investments in Egypt recorded around $30bn in June 2020.
The Prime Minister’s statement came during the “Special Virtual Briefing’s Webinar, Egypt: 2021 and Beyond”, organised by the American Chamber of Commerce (AmCham) in Egypt and the US-Egypt Business Council.
“We believe that providing adequate private capital is essential to achieve sustainable growth, which is clear through the economic reforms,” Madbouly stated.
He stressed that the current volume of public investments only maintains the status quo, but it is not sustainable in the long term, and the private sector is the main driver of growth.
One clear example is the “Decent Life” initiative, which targets the development of 1,500 villages, to provide basic services, healthcare, sanitation, and education, and employment.
“This is the first phase of a 3-year programme that targets the local development of all villages in Egypt. It targets more than 50% of Egyptians living in rural areas. A total of EGP 500bn ($32bn) was allocated for the Decent Life initiative,” Madbouly added.
He emphasised that Egypt and the US share a strategic partnership, with the economic relationship being in its core.
During his speech, the Prime Minister showcased the Egyptian government’s response plan against the novel coronavirus (COVID-19) pandemic and its impacts on the economy.
He indicated that Egypt’s banking system showed remarkable resistance, as the Central Bank of Egypt acted swiftly supporting the Egyptian Exchange with EGP 20bn investments, reducing interest rates, and postponing loan payments.
Emergency financial support was also directed to the tourism and aviation sector to cushion the pandemic impact, as well as the expansion of the cash subsidies programme “Takaful and Karama” (Solidarity and Dignity), he added.
Myron Brilliant, U.S. Chamber of Commerce based in Washington, DC., commended Egypt’s handling of the coronavirus impacts.
He added that the business community in the US is very encouraged with Egypt’s dedication to economic reforms, adding that the private sector has to play an essential role to achieve sustainable growth.
Brilliant outlined three top priorities for US businesses namely, healthcare, digitalisation, and finance. Accordingly, he proposed a partnership between AmCham and Egypt to hold quarterly meetings on these three sectors, to work on the policy agenda and encourage investments.
He revealed that AmCham will launch a social impact forum on 10 March, to demonstrate the organisation’s commitment to real impact in Egypt.