Egypt's sustainable development efforts garner international recognition

CAIRO - 8 July 2023: Despite the challenges faced by the country and the global landscape, Egypt has made significant strides in attracting foreign direct investment, particularly in green economy projects, which serve as a fundamental pillar of sustainable development.

The government has adopted strategies that leverage available resources and opportunities to create an attractive and stimulating investment environment. These efforts include supporting the private sector, streamlining procedures for investors, addressing legislative and institutional obstacles through reforms, and establishing necessary infrastructure.

As a result, Egypt has solidified its position as an attractive investment destination in Africa and the Arab world, gaining international recognition for its investment endeavors.

In this context, the Media Center of the Cabinet released a report featuring infographics that shed light on the UNCTAD report, which confirms Egypt's ranking as the top investment destination in Africa for 2022. The report underscores Egypt's reliability as an investment destination, according to international assessments.

The report highlights the evolution of foreign direct investment (FDI) inflows into Egypt since 2014. In 2022, FDI reached $11.4 billion, securing Egypt's position as the leading recipient of FDI in Africa and the second in the Arab world. This marks a significant increase compared to the $5.1 billion received in 2021, placing Egypt as the second-largest FDI recipient in Africa and the third in the Arab region.

Moreover, Egypt claimed the top spot in Africa and second in the Arab world for FDI inflows from 2016 to 2020. In 2020, FDI amounted to $5.9 billion, followed by $9 billion in 2019, $8.1 billion in 2018, $7.4 billion in 2017, and $8.1 billion in 2016.

The UNCTAD report also highlighted the surge in green projects, leading to an increase of over 100% in FDI inflows to Egypt. The country hosted 161 green projects in 2022, contributing to the growth of green projects in Africa by 39%. This positive trend has been observed in other countries such as South Africa, Morocco, and Kenya.

The report emphasized Egypt's commitment to enhancing the foreign direct investment environment. The country plans to introduce tax incentives for projects funded by foreign investments.

The UNCTAD report also commended Egypt's "Sharm El-Sheikh Fair Finance Guide," released during the UN Climate Change Conference COP27. The guide is among the prominent policies and documents guiding and promoting investment policies in 2022, as well as supporting climate actions by establishing principles to mitigate climate investment risks.

Additionally, the report highlighted the announcement of "Renew Power" to establish an $8 billion green hydrogen plant in the Suez Canal Economic Zone.

This project ranks among the top three sustainable development projects in the energy sector initiated in 2022 in developing countries. Furthermore, the report noted the launch of a solar-powered desalination plant with a capacity of 400 megawatts, among the top three water and sanitation projects in developing countries in 2022.

The report presents data on FDI inflows in 2022, estimating the figures for certain countries. South Africa falls within the range of $5 to $10 billion, while Ethiopia, Morocco, and Senegal are categorized between $2 and less than $5 billion. The Democratic Republic of the Congo, Ghana, Mauritania, and Tanzania fall within the range of $1 to less than $2 billion. Algeria, South Sudan, Sudan, Tunisia, Mali, Niger, Chad, and Namibia registered FDI inflows below $1 billion. Notably, Nigeria, Togo, and Angola reported zero or negligible FDI inflows.

The United Nations Conference on Trade and Development (UNCTAD) is a permanent international governmental organization established by the United Nations General Assembly. Its main objective is to provide technical support to assist developing countries in utilizing trade, investment, finance, and technology for comprehensive and sustainable development.

Egypt's consistent efforts to attract foreign direct investment and promote sustainable development have yielded remarkable results.

By embracing green economy projects, implementing reforms, and streamlining investment processes, the country has positioned itself as a reliable investment destination in Africa and the Arab world. The surge in FDI inflows reflects international confidence in Egypt's investment climate, bolstering economic growth, job creation, and technological advancement.