Egypt outlines three urgent priorities to boost business climate

2026-03-07 - 18:34

Egypt’s Minister of Investment and Foreign Trade, Mohamed Farid, outlined three urgent priorities aimed at improving investment climate and accelerating economic growth, stressing the importance of deeper partnerships between the government and the private sector. Speaking during a special discussion held on the sidelines of the annual Ramadan iftar organised by the American Chamber of Commerce in Egypt in Cairo, Farid described the current phase of the Egyptian economy as a “pivotal moment” requiring stronger cooperation to reinforce investor confidence and achieve sustainable growth based on solid economic fundamentals. The discussion was moderated by Omar El-Sahy and Sally El-Gendy and focused on ways to enhance the competitiveness of Egypt’s business environment and strengthen the country’s investment and trade policies. Farid said the government’s strategy centres on accelerating dialogue with the private sector to improve the business environment, increase exports and ensure long-term economic sustainability. Three immediate priorities The minister explained that the ministry is currently focusing on three key priorities to address the challenges facing businesses on the ground. The first priority involves expanding digitalisation and simplifying procedures to make it easier for companies to operate and attract new investments. “It is impossible to talk about major visions or ambitious plans without first solving the existing problems,” Farid said, noting that the government is prioritising the resolution of challenges facing companies already operating in the market while also streamlining institutional procedures and internal decision-making processes. The second priority focuses on improving the accuracy of economic data, particularly indicators related to investment and national savings. Farid said reliable data is essential for effective policymaking, highlighting the need to address challenges in calculating the national savings rate. “If Egypt aims to achieve economic growth between 6% and 6.5%, we need an investment rate of around 25% of GDP, which requires a similar savings rate,” he said. He added that with the current savings rate estimated at about 10%, the gap must be bridged through foreign direct investment or borrowing. The ministry is also working to improve the system for tracking foreign direct investment, particularly reinvested profits within companies, which are not currently captured accurately due to incomplete financial reporting. The third priority involves reducing excessive government intervention in corporate decisions, particularly in areas such as mergers and acquisitions. Farid said the government aims to align its regulatory approach with international best practices while ensuring companies provide the financial data required for effective oversight. Reducing human intervention Farid identified human intervention in administrative procedures as one of the key structural obstacles to attracting long-term capital. He explained that expanding digital services would help limit such intervention and create a more transparent and predictable investment environment. “A strong investment climate is not achieved through one major reform,” he said. “It requires a series of continuous improvements in people, procedures, bureaucracy, technology and regulations.” Raising market awareness and localising development The minister also highlighted the importance of improving market awareness, noting that some investors remain unaware of recent reforms and available incentives. He added that distributing investments more evenly across governorates is essential to achieving balanced economic development and ensuring that citizens across the country feel the benefits of reform. Farid said the government is currently working to improve services provided by five key government entities while gradually simplifying licensing procedures through digital integration and technical evaluation systems. Targeted export strategy On foreign trade, Farid emphasised the importance of adopting a targeted export strategy rather than what he described as a “scattershot approach”. This includes building a detailed stakeholder map to better understand importers, competitors and influencers in global markets, as well as organising and analysing trade data to support more effective policymaking. He also highlighted plans to digitalise export support services such as trade fairs and business missions to ensure they are accessible to companies across Egypt. Venture capital fund for start-ups Farid also revealed plans to establish a large venture capital investment fund in cooperation with the The Sovereign Fund of Egypt to support start-ups and entrepreneurial ventures. He noted that Ajay Banga has expressed interest in participating in the initiative, describing venture capital as a key driver of economic growth. The fund aims to address a major financing gap facing start-ups, particularly during expansion stages such as Series A, B and C funding rounds, which often force Egyptian companies to relocate abroad to access international investors. Combating “cold bureaucracy” Farid said the government is also working to eliminate what he described as “cold bureaucracy,” where procedural delays may appear minor to government entities but can create serious obstacles for entrepreneurs. He noted that recent reforms in capital markets and the insurance sector have opened the door to new financial tools, including the potential launch of listed venture capital funds. A message on regional developments Addressing regional developments, Farid stressed that Egypt does not seek to benefit from regional crises or conflicts, emphasising instead the importance of continuing gradual and sustainable economic reforms. “The priority now is not drafting new policies, but implementing them effectively on the ground,” he said. “If something does not work, we will acknowledge it and try again in a better way.” Farid concluded that strategies that are measurable, actionable and continuously monitored are the ones capable of delivering tangible improvements in citizens’ daily lives.