Egypt targets to reduce unemployment, boost investment by 2030

CAIRO – 11 November 2017: Egypt aims to reduce unemployment from 12 percent to four percent and double the investment rate from 16 to 30 percent within Egypt 2030 Vision, Deputy Minister of Planning Nehal el-Maghraby said Saturday in a conference titled “Investment Opportunities: Growth and Employment.”

She added that for every LE 1 billion invested in the manufacturing sector, 900 jobs are being created.

Economic expert Fakhry el-Feky said that the gradual decline in inflation rate, which peaked to 33 percent in July, can be an incentive for the Central Bank of Egypt (CBE) to cut interest rates, encouraging direct and indirect investments as well as the stock market. He added that Egypt currently needs $35 billion in investments.

Egypt’s annual inflation dropped in October to 31.8 percent, compared to 32.9 percent in September, according to the Central Agency for Mobilization and Statistics (CAPMAS).

Inflation soared to a record high in July on the back of fuel and energy subsidy cuts by the government.

Economic analysts expected inflation to continue dropping in the coming months to allow the Central Bank of Egypt (CBE) to consider cutting interest rates.

In its first review published in late September, the International Monetary Fund (IMF) flagged high inflation and fiscal pressures from energy subsidies as main challenges facing the Egyptian government.