Egypt's PM lauds Sisi's visit to Turkey

CAIRO - 11 September 2024: Egyptian Prime Minister Moustafa Madbouli lauded the visit of President Abdel Fattah El Sisi to Turkey last week.

He stressed the importance of supporting the industrial sector to be the locomotive of the development process in the coming period.

During a press conference with Finance Minister Ahmed Kouchouk on Wednesday, the premier said the world has witnessed Egypt's leverage in the Middle East region and the whole world, referring to the historic visit of President Sisi to Turkey, his talks with President Recep Tayyip Erdoğan and the inking of 17 memos on the fringe of the visit in various domains.

He noted that two of the memos were on establishing new Turkish industrial zones in the New Administrative Capital and the 6th of October.

He noted that these zones will generate job opportunities and contribute to boosting trade exchange between the two countries. 

The government has negotiated with two of the top electric and hybrid car manufacturers in China, the prime minister said, noting that these companies, which produce nearly 4 million vehicles annually, are expected to manufacture some car models in Egypt this year.

The premier said his recent visit to China carried special importance, as it had seen the signing some memorandums of understanding (MoUs) to promote cooperation in the ICT industry.

Citing the first group of agreements signed during his visit to China last week as final contracts for projects in the Suez Canal Economic Zone, Madbouli said the government is working for turning the Suez Canal Zone into a mega economic and industrial hub, not just a sheer waterway.

As for economic growth, Madbouli said S&P Global Egypt Purchasing Managers' Index (PMI) for the non-oil sector, rose to 50.4 points in September 2020, up from the 49.4 points in August, which signifies that the national economy is recovering.

Madbouli also emphasized the government's commitment to maintain that positive sign through its new tax facilitation measures.

The CBE also announced an increase in foreign currency reserves and the balances of Egyptian banks overseas, which also testifies a stable and resilient economy despite the huge challenges the government is facing, Madbouli said.

As acknowledged by heads of African states at the 2024 Summit of the Forum on China-Africa Cooperation (FOCAC) held on September 4-6, in Beijing, the challenge is of an alarming magnitude for all countries, Madbouli said during the news conference.

All heads of states who participated in the forum spoke about the huge challenges their countries are going through, Madbouli said, noting that economic challenges are now a global phenomenon the severity of which varies from one country to another.

Despite all these challenges, the Egyptian economy is showing resilience in meeting the State's needs, the premier added.

He noted that the unprecedented increase in Egyptian expats' remittances last month is also a sign of this economic resilience.

Highlighting the positive points included in the IMF report on the third review under the Extended Arrangement under the Extended Fund Facility (EFF) for Egypt, Madbouli said the report shows that the government is serious about implementing its program for rationalizing expenditures and keeping inflation under control.

"We expected a 0.5 per cent inflation rise as a result of an increase in the prices of fuel and petroleum products in July, said the prime minister during the press conference, affirming the State's commitment to CBE's vision and plan to take inflation down to less than 10 per cent by 2025.

Madbouli said this week witnessed signing an important deal to sell 100% of shares of a financing company to an international investment consortium for more than EGP 2.5 billion.

The sale reflects the state's intention to continue implementing the policy of state ownership and divestment, Madbouli added.

Madbouli referred to the Deputy Prime Minister and Industry Minister Kamel el Wazir's announcement of the launch of the first phase of the Digital Industrial Platform, which is very important for digitizing the industrial system and facilitating procedures for the industrial sector and also for the land availability system for the purpose of industrial development.

The premier stressed that the government is working with the minister of investment and foreign trade on a package of facilitations that would encourage investment and foreign trade.

New features of the program was reached to support or refund export burdens, he said, adding that details of this important program will be announced soon with the Minister of Investment,” Said Madbouli.

The program aims to increase exports within the coming period and achieve the state's goals, he added.

About the file of energy, Madbouli said he is maintaining meetings with the ministers of petroleum, finance and electricity to secure necessary funds for energy products, stressing that new news related to the energy file will be announced at the coming conference.

About the package of tax facilities to be announced, he said these facilities come in response to requests from the private sector following complaints about the tax system application methods, including what is known as provisional assessments and other obstacles hindering development and investment by the private sector.

He said a detailed explanation of all the steps to be taken on the tax file will be announced next month because some of these measures will require some legislative amendments.

He said these measures are meant to encourage the informal sector and small enterprises through a package of tax exemptions and significant simplifications of procedures, noting that any tax declaration submitted by a taxpayer or investor will be simplified.

Regarding fines, Madbouli said the maximum penalty will not exceed the original tax amount, adding that all taxpayers will be equally treated at different tax offices through enforcing some guideline.