The Egyptian Federation of Investors Association presented during its last meeting, under the chairmanship of businessman Mohamed Farid Khamis, 10 conditions for Egypt to complete the process of attracting foreign investments specifying the importance of eliminating bureaucracy and stabilising legislations. The Federation said that elimination of bureaucracy is a main priority to unleash investment opportunities, especially that
investors wishing to establish an investment require multiple approvals at various destinations to get the needed approvals wasting time and leading to Bribery and corruption in the process. Applying the one-stop system concept should tackle these factors in the sense that the process should be a one stop process without distortion to facilitate procedures and avoid bribery and corruption channels.
The Federation has also suggested cancellation of the letter of guarantee provided by the investor to prove his seriousness and achieve the principle of equal opportunities among investors. The Federation specified the importance to work on stabilising legislations through issuance of laws, application of rules and regulations, as well as, setting monitoring systems for at least five years, based on a five-year plan that does not change upon a new Minister appointment and commits to contracts and agreements set forward between the government and investors. The Federation stressed the need to put the Egyptian industry on an equal footing with its competitors to increase its
competitiveness by lifting the Burdens imposed on the Production Process by supporting these industries in a manner equivalent to other countries who support raw materials and energy resources on behalf of there local industries. On the other hand, the Federation requested blocking smuggling routes and maximising penalties on smugglers.
The Federation stressed that protection of the national industry comes through imposing tariffs and duties that comply with the World Trade Organisation’s (WTO) rules that does not prohibit increasing tariffs when the industries are subjected to unequal competition.
The Federation also Stressed the importance of developing fully equipped, scientifically developed free zones with the concept of huge space and industry logistics in mind similar to that achieved in the Suez Canal project, Sinai and Alamein.
The Federation also stressed on the need to do more effort towards developing Upper Egypt due to its strategic geographic location by activating the LE200.00 million
allocated for developing industrial zones in Upper Egypt, in addition to supporting the MSME’s concept set forward by the government in these regions. Mutasim Rashed, economic advisor to the Federation, expressed his discontent with the Ministry of Finance’s decision to increase fees at the private free zones, emphasising that this action will eliminate the main benefit of operating in a free zone. Rashed said “The Ministry of Finance increased the fees on these areas to eliminate them. Under the current fees, a free zone will not be established. Rashid requested the implementation of Article 2 of the investment law and that the law should not be applied over existing free zones, on the other hand, he stressed the importance of equality between public and private free zones.
Mohamed Al-Morshedi, deputy chairman of the Federation, called for stronger measures to fight struggling in the private free zones. Al-Morshedi stressed his support for the continuation of these projects, yet under strickter monitoring and supervision. The Federation also discussed the travel arrangements of its delegation to Tanzania for opening new markets in Africa, and agreed to postpone the trip to mid-November until the committee concludes its current market research on Tanzania. The delegation will be headed by Engineer Mahmoud Boraie.
Dr. Mohamed Khamis Shaaban, Secretary General of the Federation and Chairman of the Sixth October Investors Association, said that Tanzania is politically stable as a result of its democratic experience in terms of power rotation that lead to a remarkable economic
development over the past decade, and although the countries population resources remain limited Tanzania imports most of its needs, which makes it a promising market for Egyptian products, as well as, an opportunity for businessmen willing to invest in its diversified economic resources, or enter into industry partnerships for mutual benefit between businessmen from both countries. Mohamed Helmy Hilal, a member of the Federation, requested studying participation at the Damascus exhibition in Syria, which
is being held for the first time in 5 years, noting that he recently visited Damascus and his experience revealed that a wrong and distorted vision of violence in Damascus is reflected by media, a matter which he regarded as not true.