Innovation, strategic location to support Egypt’s long term growth: Oxford Business Group

Daily News Egypt
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A new report just produced by the global research and advisory firm Oxford Business Group (OBG) explores the sectors of Egypt’s economy that are set to drive long-term growth as the country looks to build on its strong fundamentals and ambitious reform programme in the global recovery phase.

“The Report: Egypt 2022” shines a spotlight on infrastructure, which is exhibiting substantial expansion on the back of the country’s urban planning agenda and mega-project pipeline.

Here, the report looks in detail at the New Cities programme and wide-ranging transport infrastructure initiatives that span roads, rail and port-related development.

It also provides in-depth coverage of the country’s important agriculture sector, which accounted for 12.5% of GDP in FY 2020/21 and is set to benefit from new, tech-led initiatives aimed at increasing crop productivity and strengthening both food and water security.

Egypt’s plans to sharpen its focus on higher-value-added, more sustainable manufacturing activities, in line with the targets laid out in the national economic development agenda, are another topic examined.

With global demand for hydrocarbons once again on the rise, the report also charts the uptick in exploration and production activity in Egypt, while tracking the new industry players that entered the market following the latest rounds of bidding. In addition, OBG analyses the increased focus on renewables, which includes plans for green hydrogen production.

The Report: Egypt 2022 contains a contribution from President Abdel Fattah Al-Sisi, together with a detailed sector-by-sector guide for investors.

It also features interviews with a broad range of high-profile personalities, including: Hussein Abaza, CEO, Commercial International Bank; Ayman Kandeel, CEO, AXA Egypt; Adel Hamid, CEO, Telecom Egypt; and Ramy Salah Eldeen, Managing Director, Alstom Egypt.

Commenting after the launch, Oliver Cornock, OBG’s Editor-in-Chief, said that robust fundamentals and far-reaching economic reforms implemented before the Covid-19 pandemic took hold had enabled Egypt to weather the health crisis better than many markets and put it in a strong position ahead of the global recovery.

“Egypt was the only country in the MENA region to record positive GDP growth in 2020 – a trend projected to continue in the coming years, with the IMF expecting the economy to expand from $402.8bn in 2022 to $584.9bn in 2026,” he said. “Innovation and a rapidly developing ICT sector will accelerate the country’s efforts to move towards an increasingly diversified, knowledge-based economy, dovetailing with the principles of Egypt’s Vision 2030, which aims to boost annual GDP to 12% by the beginning of the next decade.”

Karine Loehman, OBG’s Managing Director for Africa, agreed that Egypt’s bid to further broaden its economic base was gathering momentum, with agriculture, construction, retail and financial services among the many sectors earmarked to drive new growth.

“Despite feeling the weight of external pressures, including high global oil prices and concerns around food security, Egypt’s efforts to enhance its business environment and attract investment for its mega-projects and other initiatives are delivering results,” she said. “Looking ahead, we expect this important market to further leverage its strategic location at the crossroads of Europe, Africa and Asia by developing its industrial and manufacturing base, and unlocking new intra-regional trade opportunities.”

The Report: Egypt 2022 has been produced with El Shahid Law and the Egyptian Businessmen’s Association. It marks the culmination of more than six months of field research by a team of analysts from Oxford Business Group. The publication assesses trends and developments across the economy, including those in macroeconomics, infrastructure, banking, and others.

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