CAIRO: Private sector investment in Egypt, during the past three years, totaled 449.7 billion EGP ($ 63 billion,) indicating that the economy is showing signs of recovery, the Egyptian Businessmen Association (EBA) reported in its annual report.
The 2012/2013 report, released Wednesday, says that local private sector investment during the financial year 2012/2013 totaled 154.57 billion EGP ($22 billion,) registering a 0.7 percent growth rate. Investment during 2011/2012 registered 153.5 billion EGP.
The private sector’s share in 2012/2013 investments comprises 64 percent of total investments. Public sector investment reached 87 billion EGP, 36 percent of total investment, a decrease when compared to investment in 2011/2012, when investments were 92.5 billion EGP, the EBA report added.
The increasing budget deficit “obstructs the process of economic development and creates a continuous pressure on the state’s resources,” the EBA report added.
“The private sector is determined to continue investing in Egypt to keep the wheel of production running,” EBA’s executive director told Al-Ahram Wednesday.
Egypt’s Foreign Direct Investment (FDI) recorded $2.8 billion during the first half of the 2013/14 fiscal year, compared to a total of $3 billion in the 2012/2013 fiscal year, General Authority for Investment (GAFI) Chairperson Hassan Fahmy said on May 12, according to Al-Ahram.
“Approximately 8,945 companies were established during the FY 2012/2013, a number Egypt has never seen since 2000 when 2,890 businesses were established,” Fahmy said in his speech at the Business Climate Reforms in Egypt panel discussion on May 12.
According to Fahmy, these numbers are indications of a better economic outlook in Egypt despite the current challenges.
Egypt has been trying to revive its limping economy, plagued by political unrest and violence since the January 25 Revolution, which is driving tourists and foreign investment away.