Egypt targets $12 bln in FDI inflows in FY2023/24: GAFI chairman

Ahram Online , Tuesday 2 Jan 2024

Egypt has set a target of attracting $12 billion in foreign direct investments (FDIs) during the fiscal year (FY) 2023/2024, which ends in June, Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), said on Tuesday.

The General Authority of Free Zones and Investment (GAFI). File photo
The General Authority of Free Zones and Investment (GAFI). File photo


The targeted value of net FDI inflows represents a 20 percent increase on an annual basis, Heiba said.

In FY2022/2023, Egypt recorded a 10 percent year-on-year increase in FDI inflows, reaching $10 billion compared to $8.9 billion in FY2021/2022, according to previous statements by GAFI.

“These projected FDI inflows don’t include investments in the oil sector or indirect investments in debt instruments like treasury bills and bonds, as there is a noticeable surge in cash flows,” he added during an interview with Al-Arabiya.

Heiba further highlighted the challenge posed by the exchange rate fluctuations in the Egyptian market, adding that the devaluation of the Egyptian pound encourages attracting more foreign investments, as it reduces the cost of investment.

Egypt has devalued its currency three times against the US dollar since March 2022, resulting in a total loss of around 70 percent of its value.

British bank HSBC and Fitch Solutions have both predicted a further devaluation of the Egyptian pound during the first quarter of 2024. HSBC estimated the devaluation to range between EGP 40 and EGP 45, while Fitch expected it to reach EGP 38.

The government intensifies efforts to create a conducive investment climate, pressing ahead with efforts to attract more foreign investments, by implementing measures to simplify the procedures for establishing companies.

On Sunday, President Abdel-Fattah El-Sisi directed the government to intensify efforts to attract more foreign investments and enhance the role of the private sector in the country's economy.

Egypt is actively seeking foreign investments, with a focus on Gulf nations, to promote economic recovery and meet its obligations under the $3 billion loan agreement signed with the International Monetary Fund (IMF) in 2022.

Notably, Egypt ranked first in North Africa for FDI inflows in 2022, receiving $11.4 billion, reported the United Nations Conference on Trade and Development (UNCTAD).

In May 2023, the country came in 14th place among the world's top attractive and trusted emerging markets for foreign investment, according to a report by American global management consulting firm Kearney.

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