Egypt’s economic performance in FY2021/22 reassuring to global business community: Finance Minister

Daily News Egypt
5 Min Read

Egypt’s Minister of Finance Mohamed Maait confirmed that the performance of the Egyptian economy during the last fiscal year was promising in a way that sends messages of reassurance that motivate the local and foreign business community to invest in Egypt. 

He also pointed out the government’s success in achieving an initial surplus of 1.3% and reducing the total deficit to 6.1% and the debt ratio to 87.2% of GDP by the end of June 2022.

In a meeting with representatives of Japanese companies operating in Egypt on Wednesday that was organised by the Japanese Businessmen Association in the presence of Oka Hiroshi — Japan’s Ambassador in Cairo — Maait indicated that the major and unprecedented development projects that Egypt is witnessing in various aspects of life contribute to improving the lives of citizens and raising the standard of living and the services provided to them. 

Additionally, they raised the growth rate to 6.6% of GDP and provided thousands of job opportunities despite the global crisis that cast a shadow on the economies of the world. 

Maait also stressed that the government aims to maintain fiscal discipline and enhance spending on health, education, and social protection to mitigate the effects of the severe global inflationary wave on citizens as much as possible.

He pointed out that Egypt still has promising and attractive opportunities for local and foreign investments in various fields, including priority sectors, through which the state aims to achieve comprehensive and sustainable development in light of the strong infrastructure that has become more capable of accommodating the expansion of productive activities. 

The government is also keen to give more space for the private sector to play its role in the development process in a way that enhances its contributions to economic activity, which is why the state ownership document aims to empower the private sector, as it is the locomotive of job-rich economic growth.

Maait also affirmed his ministry’s keenness to simplify tax and customs procedures to facilitate the local and foreign business community and encourage it to enhance investments through the expansion of technological solutions that contribute to strengthening governance, achieving tax justice, reducing customs release time, and facilitating international trade movement.

He added that Egypt is looking forward to doubling Japanese investments in Egypt in order to consolidate the partnership between the two friendly countries and maintain the momentum of previous collaborations, such as Japanese schools and universities, the subway, the comprehensive health insurance system, gas and petroleum projects, and many programmes supported by the JICA in Egypt, including renewable energy production projects, and the Abu Al-Rish Children’s Hospital.

The minister pointed out that the volume of Japanese direct investments in Egypt increased by 52% during the last fiscal year, and the volume of inter-trade during 2021 amounted to about $1.5bn — an increase of 13% over FY2020/21.

Additionally, he announced that the Egyptian government is studying with the Japanese side the issuance of “green samurai bonds” during the coming period, after the country succeeded in issuing its first bond issuance in the Japanese market with a value of ¥60bn in a way that attracted many Japanese investors.

For his part, Oka expressed his appreciation for the finance minister’s support for Japanese businesses in Egypt on a permanent basis in a way that contributes to solving many problems and creating a more attractive business environment for investments.

He added that bilateral economic relations during the past years witnessed remarkable progress, and that the minister’s meeting with Japanese businessmen enhances confidence in the hearts of investors, removes the obstacles facing them in Egypt, pushes them to move forward towards expanding their investments, and provides an opportunity for Japanese businessmen to meet with the Egyptian government. 

He also asserted his embassy’s readiness to arrange more dialogues between Egyptian government officials and Japanese businessmen.

Share This Article