The Ministry of Investment has signed a memorandum of understanding (MoU) on Monday with the International Finance Corporation (IFC), a member of the World Bank Group, said Minister of Investment Ashraf Salman.
The MoU is part of Egypt’s efforts to benefit from the World Bank’s expertise in developing the investment environment. According to Salman, the MoU identified areas of cooperation between Egypt and the World Bank and agreed on specific projects to be established. It outlined the responsibilities of each party in implementing these projects and the methods of utilising experts and consultants.
The MoU aims to accelerate the provision of technical assistance to the Egyptian government in order to strengthen policies and procedures governing the work of investors and their protection, in addition to improving the investment environment, the minister said. Salman added that Egypt will acquire the World Bank’s assistance in conducting analytical studies on the implementation of the investment law and its regulations as per international standards, to transfer knowledge and develop the skills of workers to provide services to investors.
Methods to resolve investment disputes are covered by the MoU and the transfer of technical expertise in this field, by activating mechanisms that will limit the presence of investment disputes and provide a clear legal framework to govern the investment climate. The minister said that the MoU includes the establishment of promotional centres in cooperation with the IFC, which is one of the most important amendments covered by Law No. 17 of 2015 that amended provisions of Law No. 8 of 1997 on investment guarantees and incentives.
IFC will also provide operating, monitoring and evaluation mechanisms and assistance. Salman stressed the importance of cooperation with international institutions through consultancy, especially in the areas of knowledge and expertise transference, to attract foreign capital into a sector characterised by international competition, therefore pushing economic growth rates to safer areas.
He added that the state’s programme for economic growth prioritises global developments, trends and compliance with international standards, to provide an attractive environment for investment and restore confidence in the Egyptian economy.
The Egyptian government has been struggling to regain the confidence of business communities and local and foreign financial groups through economic, administrative and legislative reforms to pump more investments into Egypt. This will accelerate the pace of recovery of the Egyptian economy that has been suffering throughout the last three years from a decline in foreign direct investment and in tourism revenues.