Ever since the first Swiss trade representation opened its doors in 1906 in Alexandria, trade and investment have been at the forefront of Switzerland’s relationship with Egypt. Much has changed since then: diplomatic ties have been established, and new areas of cooperation have been added. But the fact that Switzerland and Egypt are close economic trade partners still holds true today.
My visit to Egypt comes at a time of profound global economic and political shifts. The war in Ukraine has led to increased commodity prices and disruptions in global supply chains. Central bank policies to raise interest rates in order to fight persistent inflation weigh heavily on emerging economies and developing countries. The effects of climate change on lives and livelihoods are more apparent than ever, from the shores of Libya, where thousands of families lost relatives, including many Egyptians, to the extreme weather events around the globe. New investments amounting to billions of US dollars are required for adaptation and mitigation measures to achieve a green energy transition.
While all countries are affected by this “polycrisis” of disparate yet interacting shocks, Egypt is one of the countries where the consequences are strongly felt. High wheat prices are a burden on vulnerable households and the public budget alike.
Swiss companies remain committed to the country. Switzerland is Egypt’s seventh-largest foreign direct investor. Almost 100 Swiss companies create around 25,000 jobs in Egypt. These companies are at the forefront of investing in the localization of production to export from Egypt to other countries. With the bilateral trade volume reaching USD 1.5 billion in 2022, Egypt is set to remain Switzerland’s largest trade partner on the African continent.
I am convinced that there is potential to grow our economic partnership further. What better way to attract new investors to Egypt than to have Swiss investors and businesses sitting directly at the table? That is why we are actively pursuing the establishment of a Joint Economic Commission between Switzerland and Egypt. Switzerland holds Joint Economic Commissions with a select number of countries, many of which are among Switzerland’s most important economic partners.
Our overarching goal is clear – we aim to create optimal framework conditions for the private sector to flourish. It is encouraging to see that Egypt has initiated reforms to enhance competitiveness, attract greater foreign direct investment, and stimulate exports. Egypt’s partnership with the IMF plays a pivotal role in creating a positive environment for the private sector and foreign investors, including those from Switzerland. We therefore consider it important for Egypt to continue on its reform path.
I take pride in the fact that Switzerland has also been a reliable partner for Egypt in development cooperation for more than 40 years. Within the current Swiss cooperation program 2021-2024, Switzerland provides Egypt around USD 94 million in grants. Working in line with the UN Sustainable Development Goals, we support Egypt’s Vision 2030. As an example, we are about to launch a new programme to improve the waste water management in Beni Suef. It is part of Switzerland’s contribution to Egypt’s environmental and climate initiatives. Since COP27, which Egypt hosted successfully, Switzerland has allocated over 50% of the current cooperation budget towards promoting a greener economy and sustainable urban development.
Switzerland’s Foreign Economic Policy Strategy places a strong emphasis on enhancing economic resilience through diversification. We aim to enhance trade and investments across the continent. This is why I plan to return soon for the Inter-African Trade Fair that will take place from 9 – 15 November in Cairo. Sitting at the intersection between Africa and Asia, close to the European market, and harnessing the opportunities of a large, young, and talented population, Egypt has great potential to be a key partner in our strategy.
State Secretary for Economic Affairs Helene Budliger Artieda
