Parliament approves €225M from KfW for economic reform

CAIRO – 26 December 2017: Parliament approved on Tuesday a €225 million ($267 million) agreement that was previously signed between the Investment Ministry and the German KfW Development Bank to support the economic reform program.

For her part, Minister of Investment and International Cooperation Sahar Nasr expressed thanks and appreciation to the parliament members for approving a set of economic legislations for the interest of the Egyptian economy.

Germany’s KfW Development Bank is providing about €1.8 billion for ongoing projects in Egypt, said Burkhard Hinz, director of KfW’s Cairo office, in late November in a conference.

The KfW Development Bank has financed the establishment of some 900 basic education schools and carried out water projects that have benefited around four million persons in the Delta governorates, in addition to irrigation projects that serve about seven million persons across Egypt, he said.

The latest economic legislation was the law on Joint Stock Companies, Partnerships Limited by Shares and Limited Liability Companies, known as Companies Act No. 159 of 1998.

Nasr affirmed her keenness to attract more investments to Egypt during the coming period, particularly in the sectors of healthcare, education and infrastructure.

Nasr said in mid-December in an official statement that Egypt has recently passed a new investment law and its executive regulations. The law includes a bundle of incentives and guarantees for investors, she said, adding that Egypt’s investment climate is suitable to receive an influx of new businesses.

She further said that an investment map is scheduled to be launched soon, which will include all investment opportunities available in different fields. The map was prepared in cooperation with other ministries.

The Egyptian government has been exerting considerable efforts recently to ramp up investment. Egypt is targeting $10 billion in foreign direct investments during fiscal year 2017/18.

Nasr noted that Egypt has started a host of major projects and adopted a comprehensive economic reform program.