PM reviews gov’t public offering program, announces plans to boost investment

CAIRO - 11 July 2023: Egypt's Prime Minister, Dr. Mostafa Madbouly, has announced that the Egyptian government plans to increase commodity exports by 20%, tourism revenue by 20%, and remittances from Egyptians living abroad by 10% during the next three years.

He added that the government has made revolutionary amendments to the investment law, and significant steps have been taken in this regard, during an expanded press conference held in the New Administrative Capital to review the position of government proposals and a number of measures to increase the participation of the private sector in economic activities.

He stated that the state intends to increase its dollar revenue proceeds. "Within the offering program, we obtained contracts with the private sector worth 1.9 billion dollars, of which one billion and 650 million dollars will enter the state, and the rest was obtained in Egyptian pounds."

He claimed that a unified electronic platform for managing and liquidating firms will be built, enabling for electronic transactions, and that the state will bear the real estate tax for 20 industrial sectors.

He explained that the administration filed to Parliament a drafted law, which was approved, to eliminate all legal provisions that favor state-owned firms.

He also stated that Egyptian exports have increased by 16% every year in recent years, and that eight of the Supreme Investment Council's 22 recommendations have been executed.

He stated that the state extended the period for which companies can be established to nine years, and that among the amendments is that it is permissible to grant incentives to a number of projects to exempt from the right to usufruct the land for a period of ten years, and that the state can bear a portion of the value of project utility consumption for a period of ten years, in order to encourage the private sector.

He went on to explain that the administration has made revolutionary reforms to the investment law and that great progress has been accomplished.

The Prime Minister also confirmed that the state is working to increase the proceeds of dollar revenues, and we have achieved contracts with the private sector within the offering program totaling 1.9 billion dollars, including dollar proceeds that will enter the state at a value of one billion and 650 million dollars, with the remainder obtained in Egyptian pounds.

The Prime Minister indicated that the initiatives are entirely Egyptian and are part of the Egyptian government's commitment on developing the private sector, and that the program is unrelated to the IMF or any other party.

"The national private sector investments are a message of confidence that the Egyptian investor is reassured that the state has a strong economy,” he said.

"The private sector is investing hundreds of millions of dollars in future projects," and the Egyptian private sector is confident in the country's economic prospects,” he added.

Madbouly went on to say that a unit has been established to oversee the offering program in collaboration with all state institutions and the sovereign fund, and that an international institution has been appointed to serve as a consultant and marketer for the offering process.