CAIRO: President Abdel Fatah al-Sisi plans to announce a long-term economic program that includes a restructure of investment legislation at United Nations General Assembly meetings in late September, Minister of Investment Ashraf Salman said at the Euromoney Egypt conference Tuesday.
Euromoney Egypt conference, with the slogan “Stability, Investment and Growth,” kicked off in Cairo Tuesday, and the ministers of finance and investment inaugurated the event in the presence of economists and domestic as well as international investors.
During his speech at the conference, Salman said that economic legislation includes modified policies of bankruptcy, labor law, new energy, unified investment, and industry law. Moreover, he said the government would not privatize before restructuring indebted public companies, because it “will not give investors a product that doesn’t function.”
The larger scheme aims at a six percent growth rate, a budget deficit of nine percent, and to reduce poverty to 20 percent in a five-year time frame.
Egypt has economic potential because of its location and its open market of 90 million consumers, the minister said, adding that the reaction of Egyptians in buying 64 billion EGP worth of the Suez Canal investment certificates in eight days “proves that the country can rebound economically in a short period.
The government’s challenge is raising growth rates, reducing poverty and unemployment rates, improving living conditions in an integrated economic social program aiming at social justice, he said.
The economic scheme aims at 260 to 336 billion EGP investments from the public sector, with the government having contributed 58 billion EGP thus far. The funds will be used for infrastructure projects: roads, bridges, water plants and other development proposals.
In 2014, the government has targeted a $1.5 billion investment from the gulf.
In two weeks time, four gigawatts of solar and wind energy will be offered to the private sector, and another four soon afterwards, Salman detailed. Within 10 years, the government plans to offer 30 gigawatts to end Egypt’s energy crisis and frequent blackouts.