The Egyptian government has commenced the process of revising economic legislation, including contract enforcement laws, the bankruptcy law, the finance market law and others, to ensure conformance to international law, according to Minister of Investment Ashraf Salman. The move comes as part of measures to improve business practices in Egypt, he said.
“We are working to strengthen the finance sector and incentivise larger economic growth rates by facilitating measures to initiate activity and decrease the amount of time it takes to incorporate and grant licences to corporations, in addition to the legalisation of the informal economy,” he said.
During a meeting on Monday with Najy Benhassine, Executive Director of Trade and Competitiveness at the Word Bank, Salman explained that the government is planning to hold a number of conferences in which an investment roadmap for Egypt will be presented. The purpose of the roadmap is to mobilise Arab and global investment and launch a major development plan.
According to a press release issued by the Ministry of Investment on Monday, Salman will consult with a delegation from the World Bank regarding development programmes in Egypt that are partially financed by the World Bank, and is exploring the possibility of the Bank providing funding for small- and medium-sized projects in the hopes of boosting growth.
“We suffer from chaotic legislation and contradictory laws currently governing the economic environment. This hinders expansion and frightens investors. All legislation must be reviewed and I think that the government starting to do this is a step in the right direction,” said Mohamed Farid, Chairman of DCode Economic and Financial Consulting.
Farid said that the government must improve business practices and enforce contracts, moves that help attract investment, solve the employment crisis and increase growth.
“We will work in cooperation with the World Bank to increase Egypt’s economic competitiveness and improve mechanisms to develop the business climate,” said Salman. He added that the government is struggling to reduce the budget deficit and confront poverty through “complete institutional cooperation”.
“We are persistent in supporting the Egyptian government’s economic reform efforts, improving the investment climate, making funding and a ‘one stop investment shop’ available, and expanding to include all governorates of Egypt,” said Benhassine.
He added that the Bank is ready to provide support to development programmes in Egypt as well as proposals and studies regarding stimulus packages, making information available, research and development, integrating the informal sector into the formal sector, small- and medium-sized projects, and continuing to cooperate with the General Authority for Investment and Free Zones for institutional development.