THE INVESTORS gathered at a posh Cairo restaurant were eager to pour money into an economy that, just three years ago, lacked the hard currency to import cooking oil. A revolution in 2011 tipped Egypt into economic crisis. Investors and tourists fled. Growth was anaemic. Unemployment peaked at 13.2%. President Abdel-Fattah al-Sisi had to seek a $12bn loan from the IMF in 2016.
Officials insist that FDI is coming—that it is always a lagging indicator. Trade tensions and uncertain growth forecasts have caused investment to fall around the world. Some firms had profits stuck in Egypt during the dollar shortages and are leery about coming back. “It takes time to rebuild that confidence,” says Razan Nasser of HSBC, a bank. Though Egypt will not seek an extension when the IMF scheme ends in November, most analysts think it will stick with its reforms.
Instead of selling cars at home, Egypt wants to become an exporter to other parts of Africa and the Middle East. The government plans to offer incentives for using domestic suppliers: firms that purchase lots of locally-made components could have 80% shaved off their customs bills. Nissan has already agreed to produce 100,000 cars in Egypt each year with El Nasr Automotive, a moribund state-run firm.
Egypt has had 2 things s right 1-managed to provide a stable govt ( autocratic but stable) 2- depegged the Egyptian Pound to the dollar and it's economy is showing upswing......will improve significantly in next 5 years if stability continues👍
lets guess,,it hasn't trickled down,,does it ever ,now ,anywhere.
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