Chinese delegations pledge linking free zones with Egyptian counterparts, more textile investments

CAIRO – 9 September 2024: In the past couple of days, CEO of the General Authority for Investment and Free Zones (GAFI) Hossam Heiba received two Chinese delegations having as members representatives of the public and private sectors to discuss pumping new investments and turning plans into reality.

One delegation is from the Central Financial and Economic Affairs Commission, and the other is from the China Chamber of Commerce for Import and Export of Textile and Apparel. The visit comes in the aftermath of the Egyptian prime minister's attendance of FOCAC hosted in Beijing last week.  

Heiba noted that the number of Chinese firms operating in Egypt had amounted to 2,000, contributing to technology transfer, creation of thousands of jobs, and bolstering of foreign currency inflow. On the other hand, the companies achieved profits, and increased their presence in the Egyptian market, and neighboring ones having free trade agreements with Egypt.

The GAFI CEO also highlighted the approval of requests submitted by Chinese investors to procure lands in New Alamain and New Menya earlier in 2024. He added that Egypt aimed to lure Chinese investments in the sectors of tourism, textiles, home appliance, renewable energy, and automotives, particularly electric vehicles.

The official underscored that Chinese investors were allowed to found businesses using the Yuan, and that the Egyptian government had been eager to coordinate more with its Chinese counterpart to boost benefit from the Belt and Road Initiative.

Heiba clarified that the Egyptian government vied for enhancing the performance of the balance of trade by adopting the motto "Investment for Export."  In a related context, he lauded the positive impact of the Chinese tourism on the balance of payments.

On his side, the deputy chairman of the Central Financial and Economic Affairs Commission stated that the Chinese government would work on linking the free zones in both countries together to better create value added, accelerate the exchange of goods and services and reach new markets.

Regarding tourism, the commission's chairman underlined the Chinese passion about the Ancient Egyptian civilization which is taught at schools, and that in turn boosts the flow of Chinese tourists to Egypt.

As for textiles, the chairman of the China Chamber of Commerce for Import and Export of Textile and Apparel stated that the coming period would witness the flow of a large number of investors. That is because they had become more persuaded of the attractiveness of the Egyptian market, easiness of measures, competitiveness of the Egyptian labor, and modernization of the infrastructure over the past decade.

The chamber chairman pointed out that China had been switching plans from nearshoring plants to countries like Vietnam and Burma to relocating to others that are close to main markets, such as Egypt.