I followed with interest what came in the press conference held by the Prime Minister of Egypt to announce the state’s plan in the face of the global economic crisis, As the chairman of the Egyptian-African Businessmen’s Association, which includes many private sector entities, which are waiting for government solutions and preparing to put their hand in the hands of the state, I would like to thank the Egyptian government for this form of transparency and high frankness of in this global conference. These are unprecedented developments in dealing with developments
Perhaps an adequate explanation is given by the Prime Minister about the size of the problem that the world has not faced in 100 years and its impact of 12.6 trillion dollars equivalent to 5 times the African GDP, the size of global inflation waves, and price differences in many basic commodities, the most important of which are wheat and oil Reflecting the extent of the problem facing the Egyptian government, which, had it not had proactive measures in economic reform and other important measures in national projects and infrastructure, would not have been able to face the economic crisis as a result of the Corona pandemic and the global crisis that followed now.
In fact, we value all the axes of this plan in a reassuring and specific manner, represented in the goal of achieving 40 billion dollars by immediately starting to activate the participation of the private sector in enabling entry and participation in state assets at a rate of 10 billion dollars annually over a period of 4 years, Among these companies are two companies from the public business sector and two companies from the armed forces with a total of ten companies. Of course, this will contribute to increasing job opportunities and improving the citizen’s income in the face of circumstances and challenges. As well as the unprecedented measures that were presented in the plan related to the industrial sector, support for the industrial sector, localization of industry, and deepening the local product with specific measures, such as determining the percentage of 25% of products in the items imported for their manufacture in Egypt with special incentive packages for those who enter these industries, as well as the transfer of industrial lands To the usufruct system for periods of time, improving the competitive environment, separating the supervisory authorities from the executive authorities, as well as working with all methods, facilities and incentives to increase the volume of exports and reach $100 billion within 3 years, and that this file will be a priority, In addition to the important measures that the state will take in providing foreign exchange in unconventional ways, such as sovereign sukuk, green bonds, Japanese samurai bonds, China bonds and other potential markets,, Also, the importance of reconsidering doubling investment incentives in areas (A), such as the Suez Canal area, Upper Egypt and Sinai, are all unprecedented tools, ideas and axes presented to confront the problem and the upcoming challenges.
And we stress that what was stated in this important meeting, which explained the importance of national projects and the importance of continuing with them according to the order of priorities and in a manner that achieves the required balance between continuity and facing the crisis in a coherent and balanced manner is inevitable, necessary and reassuring for the financial and business community and the local and foreign investor, and that thought is heading towards announcing new incentive packages To establish some activities and special projects in some areas of new cities and new urban expansion with tax incentives that may reach 5 years, tax exemption, which is one of the important mechanisms that will motivate and attract domestic internal investment as well as foreign direct investment.
We would like to express our sincere thanks to the Egyptian government and confirm that the Egyptian private sector stands side by side in overcoming this crisis, especially since we have seen our extraordinary effort in serious attempts to provide basic commodities and expand the increase in wheat stocks in many and varied ways, as well as many food commodities, which ensures the stability of financial policies, the stability of the Egyptian state, and the confidence of those dealing with it in all economic axes, which will be the cornerstone and pivot of the next stage.
We would also like to thank the state for the understanding and the vision it presented about the mechanism of dealing with inflation coming from costs or coming from a lack of supply, whether internally or from global supply chains, and explaining the mechanism for dealing with the Central Bank of Egypt with its wise policy through the Monetary Policy Committee in the face of any global changes that occur from the Federal In the next stage, the Prime Minister stressed that he and his government take into account the interest rates resulting from any upcoming changes within the limits of specific criteria, and this was taken into account in the future and in the next year’s plan and budget.
The conference confirmed to us the keenness of the Egyptian state to lead the next stage and preserve the investors, and that it allowed the exit of nearly 20 billion dollars for investors with hot money during a short period in order to maintain the confidence of the foreign investor in investing in Egypt, and that Egypt’s reception of 12 billion dollars from the brothers in the Gulf countries is a stop. Forget in light of this crisis, and this money will enter into joint investments capable of growth in light of the state’s structural reforms to treat bureaucracy and administrative problems to ensure the implementation of what was stated in this tight plan in light of the introduction of digital technology for more than 160 services that will be activated within months and will kill For the investor and the citizen, and this will help to achieve very good rates in reducing unemployment rates through the expansion of productive projects with the thought of the private sector, which was not able to enter into giant projects alone 4 years ago from now.