Private sector investments valued at EGP 461.8bn in past 3 years: EBA

Doaa Farid
3 Min Read
The implemented local investments performed by the private sector increased by 13.2% in FY 2014/2015 (Photo courtesy of EBA)

The total value of private sector investments in the past three years amounted to EGP 461.8bn, the Egyptian Businessmen Association (EBA) said in its recently published annual report.

The EBA added that the total value of implemented local investments in fiscal year (FY) 2014/2015 amounted to EGP 265.09bn, up EGP 23bn (9.7%) compared to the previous year.

As for the implemented local private sector investments, the EBA said it has increased by 13.2%, to register EGP 164.9bn. Meanwhile, local investments undertaken by the government have increased by 4.4%, recording EGP 100bn. The private sector has carried out 62.2% of the implemented local investments over FY 2014/2015.

The government is targeting EGP 37.8bn in infrastructure sector investments during FY 2015/2016, of which EGP 25.5bn will come from the state budget. The latest figure represents a 19.5% increase from FY 2014/2015, according to the Ministry of Planning.

The volume of investments targeted for the transport sector in the new budget amounts to EGP 11.9bn, where EGP 7.7bn (or 64.7%) will be directed to construct and establish main road networks and bridges. A further EGP 4.6bn (34.1%) will be allocated to develop metro lines, EGP 100.8m (0.8%) will go towards raising the efficiency of river transport, and EGP 48m (0.4%) will go to develop maritime transport.

Regarding investments for housing, utilities and urban development programmes, the government has targeted EGP 20.6bn. A further EGP 987.7m will be used for agriculture development programmes.

The Planning Ministry said the industry and foreign trade sector needs EGP 287.6m in investments, where export development investments would require EGP 40.7m. Meanwhile, the targeted investments for the electricity sector amounts to EGP 414m.

Foreign investment exits from Egypt slowed by 12% during the first quarter (Q1) of 2015, with foreign investments during Q1 of 2015 reaching $1.53bn, compared to $1.74bn in Q1 of 2014, according to the Central Bank of Egypt (CBE).

The CBE added that foreign investments coming into Egypt during Q1 of 2015 marked a record increase of 207%, reaching $2.94bn, compared to Q4 of 2014, and represents an increase of 190% compared to Q1 2014.

The CBE attributed this increase to the steady increase of British and Arab investments, especially from the UAE.

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