Despite the series of crises besieging the Egyptian economy and the impact of the US dollar shortage and a lack of investment opportunities, the United Nations Conference on Trade and Development (UNCTAD) said that Egypt is the top investment destination in Africa for the second year in a row.

The CEO of the Egyptian General Authority for Investment and Free Zones (GAFI), Hossam Heiba, said that the Egyptian government aims to increase foreign direct investment (FDI) in the fiscal year 2024-2025 by between 10 and 15 percent. compared to the volume of investments achieved during the fiscal year 2023-2024. Heiba ​​said that FDI amounted to about USD6 billion during the first half of the fiscal year 2023-2024, including the Ras Al-Hekma deal – a real estate deal signed between Egypt and UAE that will turn the Ras El Hekma area into a city. It is expected to bring in up to $150 billion in FDI in the following years.

Heiba ​​explained that in a recent report, Egypt acquired about 18.6 percent of the total investments in Africa in 2023, amounting to USD 52.6 billion. He also said that the Suez Canal Economic Zone concluded agreements for green ammonia and green hydrogen projects worth $10.8 billion. In addition, a group of investors announced a new deal to produce green hydrogen in Egypt worth $4 billion.

The report pointed out that Egypt has emerged as an investment destination in Africa for several multinational companies in the automotive, pharmaceutical, and electronics sectors. Egypt has also introduced the single-work system for investment projects which includes various licenses and permits related to investment activities. This is one of the most important facilitating measures in 2023.

Egypt's ranking has improved in the list of attracting investments

The UNCTAD report also pointed to the formation of the Supreme Council for Investment, headed by President Abdel Fattah El-Sisi, in 2023. It aims to enhance co-ordination and effectiveness of investment promotion activities and provide tax exemptions for investment and other financial incentives for green hydrogen projects.

The report showed an increase in investment flows in Egypt since 2014, despite successive crises. It recorded USD 9.8 billion in 2023 compared to USD 9 billion in 2019, and USD 4.6 billion in 2014.

It also monitored Cairo's global ranking in attracting foreign direct investment since 2014. Egypt ranked 32nd globally in 2023, 34th in 2022, 50th in 2021, 35th in 2020, 38th in 2019, 35th in 2018, 38th in 2017, 41st in 2016, 37th in 2015, and 45th in 2014.

The report showed the size of FDI flows to African countries in 2023 was as follows: USD6 billion to USD10 billion to South Africa, Ethiopia, Uganda, Senegal, Mozambique, and Namibia. According to the report, the countries with FDI inflows of $1 billion, or less than USD2 billion were Nigeria, the Democratic Republic of Congo, Ghana, Kenya, Tanzania, Algeria, Gabon, and Morocco. Countries with FDI inflows of less than $1billion included Niger, Liberia, Chad, Mauritania, Cameroon, Tunisia, Mali, Somalia, Guinea, Congo, Djibouti, and Comoros, while South Sudan, Lesotho and Angola were among the countries with FDI inflows of zero or less.

According to official data, the Egyptian government offers about 1,248 investment opportunities to private-sector investors. The number of opportunities in the field of resorts and tourist villages is about 111 investment opportunities, while the number of opportunities in tourism is 62 opportunities and in the field of electricity and renewable energy is about 24 investment opportunities.

In recent statements, Heiba said that the Egyptian government aims to increase FDI during the fiscal year 2024-2025, by a percentage ranging between 10 and 15 percent compared to the volume of investments achieved during the fiscal year 2023-2024.

Photos: Egypt is Africa's top investment destination (by Adobe)