Investment law is an important step towards enhancing investment
Economic Expert and Chairman of Elmasrya for Contracting & Trading, Ahmed Samir, stated that investors’ keenness on establishing a firm for exporting to Africa needs the government’s full support besides providing high-efficiency leaderships so that the export process is planned for success.
Speaking to the MEO, the expert added that the new investment law is an important step towards enhancing investing in Egypt, clarifying that the Egyptian leadership adopts a number of axes that enhance the state and put it among the world’s productive states.
These axes are represented in the projects that industrial zones are currently witnessing and the 1.5 Million Feddans Reclamation project in addition to providing power supplies through establishing nuclear and power plants.
“Inflation rates are expected to decline next November and December”, Samir noted, adding Egypt is on the right path regarding the international deals and cooperation as well as financial and economic reforms.
How do you see the issuance of new investment law and its impacts on the Egyptian market?
The new investment law is an important step towards enhancing investing in Egypt and we urge the government to issue the executive list as soon as possible so that the investors can make their decisions and enter the Egyptian market.
What about the government’s recent decision to raise interest rates pursuant to the high inflation rates?
We hope these high rates drop since high price rates are expected to decrease starting from next November and December and the raising of interest rates recently; was at a low ratio, so I think this will not affect investments negatively.
What are the axes that put Egypt among the world’s productive states?
These axes are represented in the projects that industrial zones are currently witnessing and the 1.5 Million Feddans Reclamation project in addition to providing power supplies through establishing nuclear and power plants and the new gas discoveries made in the Mediterranean Sea, Delta, and Western Desert.
It is worth mentioning that international organisations expect Egypt to be rich with natural gas as some Arab states within two years.
These new discoveries and focusing on new power sources represents a fundamental infrastructure for any economic progress as it covers needs of new factories and activities as well as urban expansions whether they were industrial or agricultural.
What is the impact of these axes on Egypt’s trade balance?
They would participate in solving the trade balance deficit crisis, with no doubt as Egypt suffers from this deficit due to the increase in consumption rates.
The state depended on foreign currency from tourism and transactions of Egyptians abroad to fill the gap between export and import volumes; which is not right since the currency crisis arose when there was a gap between these two elements.
How do you evaluate Egypt generally from the economic aspect?
Egypt is on the right path regarding the international deals and cooperation as well as financial and economic reforms, and choosing leaderships that are able to achieve progress and make the right decisions at right times and this is clear from the recent ministerial changes
What do you think of the efforts of the 6th of October Investors Association to form a company for exporting to African markets?
Such a firm needs the government’s full support and high-efficiency leadership. The exporting process is not easy and requires great expertise as each group of states has its own specific consumption type.
In addition, the exporting process needs a consultancy council that has data necessary for the success of the whole process.
The government shall adopt an economic constitution that mostly focuses on exporting and include the state’s vision. Such a constitution should not be changed by any change in ministers or officials.
What about Elmasrya for Contracting & Trading Company?
Elmasrya for Contracting & Trading works in the field of providing raw materials for food and plastics industries and owns factories in 6th of October city. The company also imports many materials that do not exist in the local market.
We sell plastic raw materials for factories and look for any export opportunity to the African market since there are many Egyptian factories that are not able to export to Africa. In addition, we promote products of these factories.
Did Elmasrya Company face a problem before the liberalising pound exchange rate as pursuant to the dollar crisis?
Yes, we face many problems to get materials before the government’s decision to float the Egyptian pound exchange rate because of the Black Market, thus, this decision was right as we faced obstacles in pricing amidst getting dollars for high prices from the Black Market.