CONTENTS AFRICA 2019
INVESTMENT FOR AFRICA FORUM
OVER VIEW
MAIN PILARS
INVEST IN AFRICA
8 12 14
INVESTMENT
INVESTING IN PARTNERSHIPS EGYPT & AFRICA INVESTMENT
TRADE
INVESTING IN PARTNERSHIPS EGYPT & AFRICA TRADE
INVEST IN EGYPT
INVESTMENT OPPORTUNITIES IN EGYPT
INVESTMENT OPPORTUNITY IN EGYPT
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37
45
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AFRICA 2019
H.E. ABDEL FATTAH AL SISI’S REMARKS ON THE FORUM The African countries are taking strenuous stepstowards achieving sustainable and inclusive development under the 2063 Agenda, and in this context, seeking to build successful partnerships with international and regional financial institutions that will enable them to achieve their ambitious development agendas by providing the funding required to support the infrastructure projects, and the continental connectivity projects that will prepare and create an attractive and competitive environment for the domestic and foreign investment.
I am delighted to welcome Egypt’s guests, Heads of States and Governments, investors, regional funds and international institutions as well as development partners to Africa’s 2019 Forum —“Invest in Africa”, held this year in the New Capital, to explore together new horizons that will shape a better future for the people of the African continent and achieve their development priorities within the framework of the ambitious African Agenda 2063. During its leadership of the African Union, Egypt has worked with our brothers from the African countries to translate the reform programs into operational steps that reinforces them and makes them a reality. In this context, Africa has made an important historic step on the road to continental economic integration, namely setting the Continental Free Trade Area Agreement into action and the launching of their implementing tools at the Exceptional African Union Summit in Niger on July 7, 2019. This Summit also witnessed the endorsement of the completion steps for the liberalization of trade and services, the completion of competition regulations, disputes resolution and intellectual property protection as the main pillars in opening and controlling markets to encourage all investors from different countries to invest in Africa aiming to achieve mutual benefits.
Sustainable development is a necessity for the people of Africa and we will achieve it with more cooperation, mobilizing efforts, increasing trade, boosting investment and promoting more private sector participation while emphasizing the commitments at the highest political level of the reform efforts, capitalizing on the potentials and competitive advantages possessed by the African countries that enable them to grow sustainably. The most significant of these advantages is that Africa is a young continent with a young population, youth account for the highest percentage of its population, which encourages us to continue investing in our human capital, health and education, through building cadres and skills. I call on all African partners to take advantage of the grand investment opportunities in the continent, in addition to financing the continental interconnection infrastructure projects in the fields of roads, railways, energy and the maritime sector. Moving forward with what has been achieved and a desire to achieve more, we hope that this year’s Africa 2019 Conference will contribute to the continent’s continued development efforts. Abdel Fattah Al-Sisi President of the Arab Republic of Egypt
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DR. MOSTAFA MADBOULY’S REMARKS ON THE FORUM trade and investment. Also the transfer of Egyptian expertise to the African continent, especially in the implementation of major infrastructure projects. The place we are in today, which witnesses the convening of our conference, is the best testimony of the Egyptian state’s implementation of major projects, praised by all in terms of its impact on the national economy and its contribution to changing the future of Egypt. While the Egyptian state was implementing its reform program to correct its economy, we were also closely following the reform efforts adopted by African countries, which are currently being implemented. These reforms have different domestic priorities, yet all have a common goal aimed to achieve a comprehensive sustainable development that benefits nations and contribute to raising their standards of living. This calls for more cooperation and coordination so that Africa can turn from the land of promising opportunities into a land of development and prosperity.
It is a great pleasure for us to gather here in the New Capital, in the “Invest in Africa 2019” forum, that brings together African heads of state and governments, major investors, global and regional institutions. Here to discuss together the future of Africa and looking for wide horizon of cooperation between the continent countries, and take advantage of its great potential, including the welfare, prosperity and progress of nations. President Abdel Fattah El-Sisi, during his presidency of the African Union, was keen to push for African cooperation frameworks to broaden areas, especially with regard to taking concrete steps to implement large projects that contribute to linking Africa and the creation of an enabling environment and attractive investments from various countries of the world. His Excellency also directed the Egyptian government to take the necessary measures to activate economic cooperation between Egypt and the African continent:
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We have the elements known to all, opportunities and political support from the leaders of African countries, strong relations, trade and investment agreements and strong economic groupings within the African continent. This invites us to summon international institutions and investors from around the world to contribute with us in the implementation of joint projects. In addition, to benefit from the young population and resources available. Furthermore, to make Africa the heart of the world to link all continents, which allows Africa to receive much more investments than now despite the surrounding of the global economic risks and trade wars that have negatively affected global trade flows. However, we look forward to working better together. We affirm that we will continue to support any efforts to work together and strengthen the bonds that unite us. Our sincere wishes for this conference to be successful and achieve its objectives. Again, welcome to Egypt Dr. Mostafa Madbouly Prime Minister of the Arab Republic of Egypt
AFRICA 2019
DR. SAHAR NASR’S REMARKS ON THE FORUM It is once again my pleasure to welcome you to the fourth edition of Africa 2019: Investment in Africa Forum. The forum is a platform that aims to accelerate investment flows and boost economic growth and shared prosperity among the African nations. I am delighted to work in partnership with the business community as well as the International Financial Institutions and investment banks towards fostering Africa’s inclusive and sustainable development. This year, the Forum is hosted at Cairo’s New Capital, the iconic new Egyptian landmark that is characterized by its distinguished cultural heritage, which blends with modern and technological advancement. The Forum opens a distinctive opportunity for African heads of states, governments leaders and International Financial Institutions to meet and discuss Africa’s persisting challenges and identify viable solutions to achieve the continent’s economic development and ambitions. With its presidency to the African Union, Egypt holds a unified vision for an integrated and a more prosperous African continent by unlocking the ample investment potential that the African continent has to offer in various sectors. Egypt considers the closer integration and economic collaboration among African nations as a vital element to achieve the African Development Agenda 2063. Working together, we can reach tangible development results, create job opportunities that underpin Africa’s continued growth; foster more equitable and inclusive growth; empower youth and women; and collectively build a more peaceful and sustainable Africa. Capitalizing on the successful and effective cooperation among African nations including the African Free Trade Agreement (AfCFTA), Cairo Cape Town Road line pilot project, and several bilateral agreements, the Forum will be an excellent platform to foster further investments in modern infrastructure with a specific focus on roads, railways, ports, energy and ICT development, which is highly needed to unleash the ingenuity, drive and vision of this dynamic region.
in the human capital of African talents through access to education, finance and R&D. In addition, I believe that fostering closer engagement between business owners and policy makers is essential to improve the investment framework in Africa. Together, I am confident that we can create a legacy that will shape a flourishing future for all of Africa.
Dr. Sahar Nasr Minister of Investment and International Cooperation
I encourage African leaders to unify efforts towards creating more opportunities to promote investment
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AFRICA 2019
INVEST
IN AFRICA
INVEST IN
PARTNERSHIPS
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AFRICA 2019
THE AFRICA 2019 FORUM IS:
THE FORUM
ALL IN ONE PLACE AT ONE OF THE BIGGEST INVESTMENT GATHERINGS, THE AFRICA 2019 FORUM.
Important as a stage for pan-African collaboration
An opportunity to consider the way forward on developmental issues
A unique platform for the preparation of a common strategy to unlock the vast investment potential of the continent
Focused on attracting impact investments to deliver on the social and environmental needs of the continent
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AFRICA 2019
INVESTMENT FOR AFRICA FORUM 22 – 23 NOVEMBER 2019 NEW ADMINISTRATIVE CAPITAL, EGYPT HELD UNDER THE HIGH PATRONAGE OF
H.E. ABDEL FATTAH AL SISI, PRESIDENT OF THE ARAB REPUBLIC OF EGYPT
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AFRICA 2019
U
nder the high patronage of H.E. Abdel-Fattah Al-Sisi, President of the Arab Republic of Egypt, the Ministry of Investment and International Cooperation (MIIC) is organizing the fourth edition of the Africa 2019: Investment in Africa Forum on the 22nd and 23rd of November 2019 in Cairo’s New Administrative Capital. Egypt’s New Capital, an Egyptian national landmark demonstrating African capacity to bridge profound heritage with technological advancement and future prospects. Capitalizing on previous successful annual meetings, this year’s Forum provides a unique pan African platform bringing together African heads of states and governments’ leaders in inclusive interaction with prominent regional and international investors, as well as International Financial Institutions. Africa 2019: Investment for Africa Forum confirms Egypt’s commitment to the African Development Agenda 2063, which aims at leveraging our capacities and expertise to realize tangible development results, achieve inclusive and sustainable economic growth, and boost shared prosperity with the ultimate objective of meeting the aspirations of the African people.
As Egypt presides over the African Union in 2019, President Al-Sisi’s vision for Africa emphasizes the urgency of showcasing Africa prominently on the global investment map; strengthening the frameworks of multilateral cooperation; and engaging private sector actors into Africa’s inclusive and sustainable development. Significant efforts are thus underway towards developing infrastructure, promoting renewable energy, accelerating digital transformation, improving transportation, modernizing industries and investing in human capital. During the Forum, business transactions will be forged through promoting and showcasing potential investment opportunities across the continent that aim at boosting shared prosperity and inclusive growth. In addition, success stories
of young entrepreneurs and start-ups will be presented, especially those led by our women and youth, to attract smart global investors and contribute towards sustainable development of our African continent. A high-profile Presidential roundtable session will convene on November 22nd, chaired by H.E. President Al-Sisi, to discuss Africa’s untapped investment opportunities and joint economic cooperation aiming at boosting investment flows to Africa. Presidents will meet to exchange views on means to ensure higher engagement of development partners and private sectors in order to foster Africa’s economic prosperity and growth. In addition, the Government of Egypt will organize and host a pre-forum two-day intensive workshop, entitled “Investment Promotion Policies and FDI Trends” on November 20th and 21st, 2019. The workshop will bring together Ministries and Investment Promotion Agencies from the African Union countries to share knowledge and showcase their success stories. They will also discuss prospects of improving the targeting mechanism of investment promotion strategies to harness inter-African and FDI potential. Another parallel two-day comprehensive workshop entitled “Made in Africa: Mobilizing Investment for Africa’s Sustainable Industrial Development” will be held on November 20th and 21st, 2019. The main objective of this workshop is to discuss Africa as a land of opportunity exploring various means to attract capital inflows to the continent on the account of utilizing the continent’s vast resources, achieving its self-sufficiency and contribute to its industrial transformation.
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THE VENUE:
NEW ADMINISTRATIVE CAPITAL This year, Africa 2019: Investment for Africa Forum will be hosted at Egypt’s New Administrative Capital which represents an iconic Egyptian landmark demonstrating Africa’s capacity to bridge our proud heritage with technological advancement and future prospects. The New Administrative Capital has been chosen to host the 4th edition of the Forum in order to showcase the African ability to implement large - scale infrastructure projects, attract investments, demonstrate real cooperation between the public and the private sectors, and provide new job opportunities.
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AFRICA 2019
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AFRICA 2019
OVERVIEW What?
Where?
When?
Africa 2019: Investment for Africa Forum
New Administrative Capital, Cairo
November 22 & 23, 2019
The forum’s main themes will be covered through interactive panels taking place with renowned key-note speakers who will be focusing on linking investment opportunities with Africa’s sustainable development goals. The selected themes are of strong relevance and interest to the African nations as well as investors. These themes are mainly:
MAIN PILLARS
1.
Impact Investment for Inclusive Development
2.
Investing in Human Capital
3.
Entrepreneurship, Innovation and Women’s Empowerment
4.
Infrastructure, Connectivity and Renewable Energy
5.
Industrial Transformation and Digital Economy
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AFRICA 2019
To this end, Africa 2019: Investment in Africa Forum paves the way towards the realization of Africa’s 2063 development goals and lays the foundation for effective future economic cooperation among African nations.
Who? H.E. Abdel Fattah Al Sisi African Heads of States Government leaders Ministry of Foreign Affairs Ministry of Investment and International Cooperation Ministry of Trade and Industry Private Sector International Financial Institutions
Why? Increase inter-African collaboration Increase development in Africa Discuss how to attract more investments in Africa Discuss challenges facing Africa Unlock the potential in Africa and opportunities it holds Create impact investments in Africa
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INVEST
IN AFRICA “Africa, the land of beauty, inspiration, unlimited resources, and abundant opportunities...... With: 6 out of the top 10 fastest growing economies in the world. The highest growth rates for FDI inflows the largest global destination for mineral industries A thriving market for renewable energy. A booming momentum for digital transformation a wide talent pool of eager, visionary and pioneer young women and men, and huge marketplace of businesses and consumers.�
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AFRICA’S MACROECONOMIC PERFORMANCE&PROSPECTS The expanded market that will be created by the African Continental Free Trade Area Agreement (AfCFTA) is expected to stimulate trade in services, resulting in financial stabilization and the promotion of cross-border investments. Moreover, ndustries that rely heavily on services – such as the manufacturing and agricultural sectors – are also expected to grow.
In the medium term, growth is projected to accelerate to 4% in 2019 and 4.1% in 2020. Africa’s is expected to be higher than most of the emerging and developing countries.
The United Nations Economic Commission for Africa has estimated that the African Continental Free Trade Area Agreement (AfCFTA) is “expected to boost consumer spending to about $1.4 trillion in 2020 and increase intra-African trade by 52% above the baseline by 2022.”
Africa’s economic growth continues to strengthen, reaching an estimated 3.5% in 2018, about the same as in 2017 and up 1.4 % points from the 2.1 % in 2016. 2016
1.4 2.1
2017 2018
3.5
East Africa led with GDP growth estimated at 5.7% in 2018, followed by North Africa at 4.9%, West Africa at 3.3 %, Central Africa at 2.2%, and Southern Africa at 1.2%. East Africa
2018
5.7
North Africa
2018
4.9
West Africa 2018
3.3
central Africa 2018
2.2
South Africa 2018
1.2
2019
4%
2020
4.1
The drivers of Africa’s economic growth have been gradually rebalancing in recent years. Consumption’s contribution to real GDP growth declined from 55% in 2015 to 48% in 2018, while investment’s contribution increased from 14 % to 48%. Net exports, historically a drag on economic growth, have had a positive contribution since 2014. 2015
55%
2018
48%
African economic integration would create a single market of more than 1 billion people, with a gross domestic product of more than $3 trillion, breaking down existing barriers to the movement of goods, services, people, capital and ideas across the continent.
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AFRICA’S
SECTORS
AGRICULTURE The agricultural sector is an engine for job creation in Africa. It accounts for about 60% of total employment in the Sub-Saharan region, while the share of jobs across the food system is potentially much larger.
Total Employment
60%
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
Livestock and aquaculture are also important sub-sectors for African agriculture with the production of fruit and vegetables intended primarily in recent years. The total value of agricultural production has increased by 130% for a labor force of nearly 530 million.
agriculture accounts for 16% of the GDP of  Currently, the African continent.
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AFRICA’S
SECTORS
CONSUMER SERVICES Africa is one of the fastest-growing consumer markets in the world. Household consumption has increased even faster than its gross domestic product (GDP) in recent years—and that average annual GDP growth has consistently outpaced the global average. In light of the increasing affluence, population growth, urbanization rates, and rapid spread of access to the internet and mobile phones on the continent, Africa’s emerging economies present exciting opportunities for expansion in retail and distribution sectors.
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Africa’s current population of around 1.2 billion people is projected to reach 1.7 billion by 2030. More than 80% of Africa’s population growth over the next few decades will occur in cities, making it the fastest-urbanizing region in the world. At the same time, incomes are rising across much of the continent, generating new business opportunities in the consumer market.
In fact, consumer expenditure on the continent has grown at a compound annual rate of 3.9% since 2010 and reached $1.4 trillion in 2015. This figure is expected to reach $2.1 trillion by 2025, and $2.5 trillion by 2030. These trends are spurring growing markets in a range of sectors where Africans have unmet needs, including food, beverages, pharmaceuticals, financial services, healthcare, and education.
Investment for Africa
AFRICA 2019

Africa is widely viewed as offering the final frontier for consumer growth. The business environment is improving across the continent, infrastructure is being strengthened, while growing numbers of consumers are earning more and purchasing products and services that support their aspirations.

The rise of mobile communications is fueling consumer growth and resulting in a major shift towards online shopping, which is set for massive expansion as mobile usage soars.
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AFRICA’S
SECTORS
MANUFACTURING An African industrial revolution is underway as manufacturers ramp up production of everything from processed food to automobiles. African industries have the opportunity to double production to nearly $1 trillion within a decade. Three-quarters of that growth is likely to come from manufacturing to substitute imports and meet local demand. But there is also an important opportunity to grow manufacturing exports and make Africa the world’s next great manufacturing center.
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The manufacturing sector creates a huge opportunity for the continent and it is considered as a major factor in helping Africa achieve their goals of successfully reaching the next stage of economic development.
The most recent illustration is the launch of the African Continental Free Trade Area (AfCFTA), a single market for goods and services in Africa that aims to unlock manufacturing potential and facilitate industrialization, driving sustainable growth and jobs among other objectives.
Investment for Africa
AFRICA 2019

The African Union has put the manufacturing sector as a priority in its Agenda 2063 and strategic framework for the socio-economic transformation of the continent. Furthermore, African governments have recognized that a resilient manufacturing sector paves the way for a nation to provide a quality standard of living for its citizens.

Therefore, African governments are seeking new and innovative ways to attract investments by implementing strategies that involve targeted investments in infrastructure, improved regional integration, and the establishment of special economic zones (SEZs) for priority sub-sectors.
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AFRICA’S
SECTORS
TELECOMMUNICATION The telecom sector in Africa has opened up a plethora of business opportunities. Among all other continents, Africa has been the fastest growing mobile market during the past five years, with more than 170 million mobile users. Mobile networks have had a significant impact on economic growth and the socio-economic transformation of Africa.
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Considering that Africa’s mobile phone usage has gone up 344% between 2007 and 2016, the growth in the telecom sector is not entirely surprising. When compared with other continents, the growth of the telecom sector in Africa looks far more promising. While other continents have reached a saturation point in the growth of revenue and subscribers, Africa opens up fresh opportunities and positive market trends.
Furthermore, Africa is still opening its gates to development, and the economic growth brought about by the telecommunication sector has further contributed to making it a profitable investment opportunity.
Investment for Africa
AFRICA 2019
This has leapfrogged many people over traditional banking products. This trend will allow companies to improve productivity, speed up transactions, and access wider markets, and could add $300 billion to the continent’s GDP by 2025.
The future of the ICT sector in Africa will see the introduction of artificial intelligence, and the automation of network related tasks. This will reduce operating costs in the long term, thus prompting telecom companies to attract more skilled professionals
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AFRICA’S
SECTORS ENERGY
Africa is at the forefront of distributed energy systems that can increase energy access in rural areas faster, more cheaply, and more widely than conventional grid extension, driven by innovative business models and rapidly decreasing technology costs. At the same time, renewable energy is on the rise across the continent with significant renewable generation capacities added in countries such as Egypt, Morocco and South Africa.
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Accessible, reliable and affordable energy is the cornerstone of transformational socio-economic development. For Africa, delivering sustainable development is dependent on meeting the continent’s energy needs in order to lift populations out of poverty, catalyze industrialization, and stimulate economic growth.
Renewable energy investments are also on the rise across the continent from Senegal, to Kenya, and Zambia. While this progress is encouraging, the pace of energy access falls far short of meeting universal energy access targets by 2030.
Closing the gap on Africa’s energy challenges presents major opportunities for investors keen on engaging with the continent, especially on helping Africa meet the shortfall in the estimated $90 billion required to achieve universal energy access by 2030.
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AFRICA 2019
AFRICA’S
SECTORS
HEALTHCARE
Africa’s population is growing rapidly. Over the past 20 years, it has increased annually by 2.5% and is expected to rise to 2.4 billion by 2050. 11% of the global population call Africa home, yet it carries 24% of the global disease burden in human and financial costs.
2.5
11%
2.4
Africa’s population 24%
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Financing quality health care goods and services throughout Africa is a challenge. In a region where public resources are limited, the private sector is already a significant player. Around 60% of health care financing in Africa comes from private sources, and about 50% of total health expenditure goes to private providers.
Africa needs to build sustainable health systems and one effective way to do this is through collaborating with its private sector. By leveraging its resources, expertise, networks, infrastructure and assets, the private sector can focus on innovation for new technologies, systems and processes; support policy formulation, and form partnerships that will have continent wide impact on the population’s health.
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AFRICA 2019
AFRICA’S
SECTORS EDUCATION
In a time of rapid population growth, and tight fiscal budgets, African governments continue to face challenges in expanding free public education and hiring more qualified teachers.
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Private enrollment grew faster than public enrollment between 2005 and 2018, at every level other than the pre-primary (kindergarten) level. Yet the vast majority of young African students—158 million—are in public education, with only an estimated 41 million in private education.
41 Million
Africa’s Education 158 Million
Across Africa, 21% of children and young people currently in school are enrolled in a private educational facility. These include for-profit, charitable, non-governmental, faith-based, and community-managed institutions, providing services including primary and secondary education, technical and vocational training, and supplementary afterschool or language tutoring.
Low-cost private schools have dramatically grown across the continent to fill this gap. Middle-class parents with better financial resources have turned to private schools to give their children better quality education, with more innovative and developed programs.
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AFRICA 2019
Under current educational models, half of all primary school children will reach adolescence without the basic skills they need to lead productive lives. And while public spending on education has increased over the last decade, the public sector still lacks sufficient capital or capacity to fill the rising demand for educational opportunity.
Africa’s potential as a growth market for business remains untapped. Africa’s fast-growing population and fast-growing markets presents important opportunities.
Africa’s unfulfilled demand for goods and services needs to be met by innovation and investment.
930
30
Investment for Africa
500 143
287 Acceleration Case
2025
2015
2015
Current Trajectory
2015
Historical Output
2005
408
INVESTING IN PARTNERSHIP EGYPT & AFRICA
AFRICA 2019
ECONOMIC PARTNERSHIP
E
conomic relations with the African continent is an important dimension in the framework strategy adopted by Egypt concerning overall cooperation with African countries. Over many decades, Egypt has strengthened its economic partnership, bilaterally and regionally, with the continent. Egypt seeks to open African markets to develop Egyptian exports, to expand the marketing base of the Egyptian products and to increase and strengthen the imports from African countries, in order to encourage greater African cooperation and further regional integration. The Egyptian policy aims to strengthen its economic relations with Africa as a strategic priority by increasing Egyptian investments in Africa and strengthening economic cooperation in areas closely related to development, and to support the implementation of the African Union Agenda 2063, which represents the basic development framework for the African continent.
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INVESTMENT
Investment for Africa
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AFRICA 2019
STRATEGY FOR DEVELOPING EGYPTIAN INVESTMENT IN THE AFRICAN CONTINENT Within this context, the Ministry of Investment and International Cooperation (MIIC) has taken the following actions:
Encourage bilateral and multilateral cooperation and knowledge sharing between African countries to enhance African integration and economic development.
Cooperate with African IPAs to build a new image of the continent as one of the most important FDI destinations
Support development throughout Africa by providing technical assistance and capacity building services
Encourage the private sector to invest in African countries to support the development process in the region
In accordance with MIIC’s vision, the General Authority for Investment and Free Zones (GAFI) has signed several Memoranda of Understanding (MOU) with African IPAs in order to enhance institutional collaboration, sharing knowledge and organizing investment promotion activities. In this respect, GAFI has organized several investment promotion missions to encourage the Egyptian private sector to establish joint ventures in Africa. GAFI has also prepared and organized different training programs to share its experience in investment promotion, improving the business climate and the harmonies of the investment policies, procedures, and regulations for several African IPAs. As a result of MIIC’s efforts, Egyptian private investment in Africa increased to exceed 11 billion (between 2003 until 2019) with a total of 78 projects, which created more than 24,708 jobs. On the other hand, it is worth mentioning that the African participation in the issued capital in Egypt reached 2.8 billion USD with a total 2,398 companies.
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LIBYA
The top 5 African countries investing in Egypt
ALGERIA
MAURITIUS
SUDAN
MOROCCO
ALGERIA ETHIOPIA
GHANA
LIBYA
Main African destinations for Egyptian investment
COTE D’IVOIRE
SUDAN
KENYA
NIGERIA
MOROCCO
AFRICA 2019
KEY SECTORS FOR EGYPTIAN & AFRICAN BUSINESSMEN TO ESTABLISH JOINT VENTURES TO INVEST IN
ROAD
AVIATION
MARITIME
ICT
ENERGY
MINING
HOSPITALITY
REAL ESTATE
AGRICULTURE
AGRICULTURAL PROCESSING INDUSTRIES
FISHERIES
LIVESTOCK
TOURISM
MANUFACTURING
LOGISTICS
RAIL TRANSPORT INFRASTRUCTURE
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TRADE
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AFRICA 2019
STRATEGY FOR DEVELOPING EGYPTIAN TRADE IN THE AFRICAN CONTINENT The Egyptian government announced a strategy to develop Egyptian exports to African countries from 2018 to 2020 in cooperation with five export councils: Chemical Export Council (CEC), Export Council for Building Material (ECBM), Refractory & Metallurgy Industries (ECBM), Engineering Export Council (EEC), Food Export Council (FEC), Export Council of Medical Industries (ECMI). The strategy includes a clear action plan with specific time frames defining target markets, implementation mechanisms and export opportunities available for Egyptian products. The strategy is based on six main areas:
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Analytical study of African markets
Logistic support
Development of export markets
Financing
Guarantee of exports and trade agreements
Development of the export support program targeting the African market
In this context, Egypt, is keen on focusing its policy activities towards other African countries and making the most out of the economic and strategic opportunities of African regional integration. Egypt is also one of the first countries that signed the Agreement establishing the African Continental Free Trade Area (AfCFTA), in order to create jobs that would improve the standard of living of the continent’s citizens.
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AFRICA 2019
Between January 2003 and July 2019, 83 Egyptian FDI projects were recorded. These projects represent a total capital investment of $11.37 billion, which is an average investment of $137 million per project. During this period, 24,135 jobs were created.
January 2003 July 2019
EGYPT TO AFRICA
The largest number of projects was announced in 2015, with nine projects that year. The average project size peaked in 2006 for both capital investment and jobs created. In terms of project type, 95.2% of projects are new investments. New projects have an average capital investment of $128.00 million and job creation of 292 per project. The average capital investment for colocation and expansion is $653.40 million and $201.20 million, respectively.
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Investment for Africa
24.135 Jobs
95.2% New Investments $128 Capital Investment 292 Jobs $653.40 Million Expansions $201.20 Million
January 2003 July 2019
A total of 45 companies from Egypt invested in Africa between January 2003 and July 2019. The top 10 companies accounted for a combined total of 41 projects (49.4% of projects). Within the past 12 months, two of the top 10 companies have announced projects, with Elsewedy Electric (Elsewedy Cables) being the top investor for this period with two projects. These companies account for 48.2% of job creation and 49.1% of capital investment.
83 FDI Projects $11.37 Billion $137 Million
45 Companes $11.37 Billion $137 Million 24.135 Jobs
Reference: fDi Markets (Egypt to Africa January 2003 to July 2019 Report)
AFRICA 2019
4.612 Jobs
Building materials have generated the highest number of total jobs and greatest investment with a total of 4,612 jobs and $2.89 billion investment. Coal, oil, gas and pharmaceuticals sectors have the largest project size on average in terms of investment and jobs creation, respectively.
Total Jobs in Oil & Coal $2.89 Billion
19.205 Jobs
Manufacturing has generated the highest number of total jobs and greatest investment with a total of 19,205 jobs and $8.25 billion investment. Construction and extraction have the largest project size on average in terms of investment and job creation, respectively.
Manufacturing
$8.25 Billion
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AFRICA 2019
NUMBER OF PROJECTS BY THE TOP 10 EGYPTIAN COMPANIES IN AFRICA ARE
Elsewedy Electric (Elsewedy Cables) with a total of 12 projects
Mobiserve with a total of 5 projects
Wadi with a total of 4 projects
Reyada Construction Industries with a total of 4 projects
Banque misr with a total of 4 projects
Orascom Construction Industries (OCI) with a total of 3 projects
ASEC Cement Holding (ACH) with a total of 3 projects
Egyptian International Pharmaceuticals (EIPICO) with a total of 2 projects
National Bank of Egypt (NBE) with a total of 2 projects
Orascom Construction Industries with a total of 2 projects
Reference:fDi Intelligence from The Financial Times Ltd
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Investment for Africa
THE TOTAL NUMBER OF EGYPTIAN PROJECTS ORGANISED BY SECTOR
AFRICA 2019
Financial services with a total of 17 projects
Building Materials with a total of 13 projects
Electronic components with a total of 8 projects
Communications with a total of 7 projects
Food and Tobacco with a total of 7 projects
Metals with a total of 6 projects
Pharmaceuticals with a total of 4 projects Coal, oil & gas with a total of 3 projects Industrial equipment with a total of 3 projects.
Business Services with a total of 2 projects Other Sectors (undefined) with a total of 13 projects Reference: fDi Intelligence from The Financial Times Ltd
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AFRICA 2019
THE TOTAL NUMBER OF EGYPTIAN PROJECTS IN AFRICA BY COUNTRY
Algeria: 14 projects with total Investment capital $5.7 billion
Ethiopia: 8 projects with total Investment capital $816 million
Kenya: 8 projects with total investment capital $101.1 million
Libya: 8 projects with total investment capital $389.5 million
Morocco: 8 projects with total investment capital $181.8 million
Sudan: 8 projects with total Investment capital $1.8 billion
Nigeria: 4 projects with total Investment capital $582.4 million Côte d’Ivoire: 3 projects with total Investment capital $28.5 million Tanzania: 3 projects with total Investment capital $65 million
Tunisia: 3 projects with total investment capital $17.9 million Other destination countries: 16 projects with total investment capital $913.4 million
Reference: fDi Intelligence from The Financial Times Ltd
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INVEST IN EGYPT
AFRICA 2019
S
ince June 2014, Egypt has adopted an ambitious approach to inclusive and sustainable development and as such has taken bold strides to transform its economy, stimulate efficiency, bridge opportunity gaps, and promote shared prosperity. These efforts are a reflection of commitment at the highest political level to acknowledge deep-rooted challenges and address them in a timely and efficient manner, ensuring all voices are heard. President El-Sisi has laid out a grand vision for a prosperous Egypt, setting policies that would accelerate the development process, restore macroeconomic imbalances, as well as foster an attractive investment climate that encourages domestic and foreign private sector participation, providing job opportunities and quality services to all Egyptians. To ensure the effective and coordinated implementation of this grand vision, the Government embarked on an ambitious economic and social reform program that is unprecedented in its scope. The Government has been working full-force to implement this program, with the ultimate objective of achieving fast-paced, sustainable, and inclusive development. The reform program
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set ambitious targets for sustainable, private sector-led growth and job creation, through reforms grouped under four main pillars: macro-fiscal stabilization, private sector-led growth, social and economic inclusion, and transparency and accountability. Economic reforms are packaged with social safety nets to ensure any adverse effects of reforms are mitigated, protecting the most vulnerable segments and ensuring economic and social inclusion. The program is reflected in a comprehensive package of policies and projects, aiming to build a strong foundation for inclusive sustainable development through boosting growth, productivity, and investment. Furthermore, the Government has embarked on several national megaprojects such as the Suez Canal Economic Zone, the Administrative Capital, Al Alamein City, expansion of the roads network, and upgrading and expanding electricity, water and wastewater grids. These projects support the achievement of Egypt’s development goals and strengthen current economic trends, as well as lay the necessary foundations to attract deeper private sector participation in the development process, in addition to creating hundreds of thousands of jobs.
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Eliminating constraints on private sector development and boosting investment is an integral part of Egypt’s vision. The Ministry of Investment and International Cooperation is one of the key players working on advancing these efforts, and has such has laid out a clear strategy focused on implementing reforms that would enhance the legislative, institutional and administrative environment, adopt an effective competition framework, promote gender equality, and support small and medium enterprises (SMEs), to achieve high levels of sustainable and inclusive growth, in line with the investment policies set by the Supreme Council for Investment, headed by H.E. President Abdel Fattah Al Sisi. This parcel of reforms has been designed taking into account recent economic developments in global markets, and factoring in the rapidly changing technological landscape, ensuring innovative solutions and tools are effectively tapped on. With the full-fledged support of the state’s executive and legislative bodies, several new legislations have been drafted and enacted, and important amendments to existing laws have been introduced. The centerpiece of the improved legislative environment is the new Investment Law No. 72 of 2017 and its Executive Regulations, in addition to a series of complementary laws, such as the Restructuring, Pre-
Insolvency Conciliation and Bankruptcy Law. Amendments have been also introduced to Law No. 159 of 1981 on Joint Stock Companies, Companies Limited by Shares and Limited Liability Companies, Capital Market Law No. 95 of 1992 and its Executive Regulations, the law regulating real estate financing and factoring and the Law regulating shared transport, in addition to rules regulating the management of the Egyptian Stock Exchange and those regulating the election of its Board members. The Ministry has also been keen on developing the non-banking financial sector to promote financial inclusion and expand opportunities for lower income citizens to improve their livelihoods and standards of living. In addition, through its partnerships with international finance institutions, the Ministry pools funds from diverse resources and channels them to lagging regions, marginalized segments of society and towards infrastructure projects that spur private investments. Furthermore, it utilizes its international relations to transfer expertise, advanced technologies, managerial and operational skills, know-how and best practices to improve public administration, optimize utilization of natural and human resources, and enhance access to improved public services for all citizens.
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Latest Rankings According to UNCTAD’s latest Global Investment Trends Monitor, Egypt “continues to be the largest recipient of FDI on the [African] continent, attracting $3.6 billion in 2019H1; a significant number of new investment deals have been announced.” Global foreign direct investment (FDI) flows in the first half of 2019 were 24% higher in the first half of 2018. FDI flows to Africa in the first half of 2019 were an estimated US$23 billion.
According to UNCTAD’s latest World Investment Report, Egypt retained its position as the largest recipient of foreign direct investment in Africa last year.
Egypt is anticipated to be among the top 20 drivers of growth by 2024, according to a Bloomberg report based on the estimates published by the International Monetary Fund (IMF). The forecast also includes China, India, Thailand, Malaysia, Japan, South Korea, Philippines and Bangladesh from the Asian countries. Weaker global growth, expected to fall to three percent this year and the slowest since the global financial crisis, will affect 90 per cent of the world, according to the IMF estimation.
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AFRICA 2019 Egypt jumped six spots to rank 114th out of 190 countries in the World Bank Group’s 2019 Ease of Doing Business report. The ranking marks an improvement from Egypt’s ranking of 120th on the Doing Business 2019 report. The report monitored the Egyptian government’s implementation of several reforms to improve the investment climate and simplify procedures in four areas.
Starting a business:
Egypt made starting a business easier by abolishing the requirement to obtain a certificate of nonconfusion and improving its one-stop shop.
Getting electricity:
Egypt improved the reliability of electricity supply by implementing automated systems to monitor and report power outages.
Protecting minority investors:
Egypt strengthened minority investor protections by requiring shareholder approval when listed companies issue new shares.
Paying taxes:
Egypt made paying taxes easier by implementing an online system for filing and payment of corporate income tax and value added tax.
According to the World Bank’s October Outlook for Egypt, Egypt’s economy would grow by 5.8% this fiscal year. The World Bank inched up its growth estimate for Egypt’s gross domestic product (GDP) in the last fiscal year to 5.6% from 5.5%. “Egypt is sustaining its robust growth, fiscal outturns are improving, and external accounts are stabilizing at broadly favorable levels,” the World Bank said.
According to the World Intellectual Property Organization’s 2019 Global Innovation Index, Egypt’s ranking continues to improve. Egypt jumped this year 11 places in the Ease of Resolving Insolvency indicator and 10 places in the Ease of Protecting Minority Investors indicator. The strong metrics also included: knowledgeintensive employment, the state of cluster development, knowledge impact (the percentage growth of PPP and GDP per worker, GDP spending on computer software as well), creative goods exports, and our trade, competition, and market scale.
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WHY EGYPT? Central location and proximity to the global market Gate to Africa and the Middle East Center of the World
EGYPT
World’s 3rd Fastest Growing Economy 2019/Q1
Access to a large consumer base in Egypt and beyond 97.6 million in Egypt and 1.3 billion in Africa Free Trade Agreements including COMESA, GAFTA, EU Egypt, QIZ, Aghadir, EFTA, Egypt Mercosur Large pool of trained and skilled labor including: Over 29 million 60% under 30 Competitive wages Revamped infrastructure base 20 Airports and 15 Seaports Railway and subway networks Abundance in natural resources Mineral and Renewable Resources
5.8
China 1 India 2 Egypt 3 Philippines 4 Indonesia 5 Poland 6 Malaysia 7 Pakistan 8 USA 9 Israel 10 Czech Republic 11 Thailand 12 Norway 13 Spain 14 Denmark 15 KSA 16 Colombia 17 Peru 18 Sweden 19 Britain 20 Australia 21 0.1 Italy 2.6 Turkey Argentina
Resilient Economy Diversified investment opportunities Competitive cost of doing business
Source: The Economist (July 2019)
INVESTMENT INDICATORS Private investments witnessed a rise of 51.7% during FY18/19 reaching LE 480 billion compared to LE 316.4 billion during FY16/17. The total implemented investments also increased during the FY18/19 by 30.3% reaching LE 940 billion compared to LE 721.1 billion during FY17/2018. First FDI attractive destination in Africa and second in Middle East. 6.1% increase in FDI Stock in 2018. Largest number of incorporated companies in one year with a total of 21,078 companies were in 2018 Total issued capital of LE 56.8 billion in 2018
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6.4 5.8
5.6
3.3 3.2 3.2 2.8 2.8 2.5 2.4 2.4 2.4 2.3 2.3 2 1.8 1.8
5.6 5.1 4.7 4.5
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HOW WE HELP
INVESTMENT MAP The Investment Map provides a comprehensive view of the many investment opportunities across the country. The map provides an interactive 360 degree view to allow existing or potential investors to search and discover opportunities by geographical location, economic sector in addition to information on all major national projects. It also presents all information needed to establish a project, including available facilities such as; ports and means of transportation, vocational training centers, schools, hospitals, among others. The map also outlines all the different zones and incentives provided through each, in addition to development projects categorized by the relevant development partners. The map also provides the investors with information about other investors operating within the market. www.investinegypt.gov.eg
Your Personal Account Phase two of the Investment Map, launched in July 2019, enables Investment Map users to create a personal account on the Map portal, which will grant them access to many privileges and features that facilitate and enhance their experience when using the system. Some of the main features a user will get when registering for an account are: Adding an opportunity to a personalized list of opportunities Sharing the opportunity with a friend Downloading a PDF file of the opportunity A map legend for easier understanding and using of map symbols and determining distance between different points on the map Comparing opportunities Receiving a notifications on when opportunity status changes Reporting any technical problems As well as other features
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HOW WE HELP INVESTOR SERVICE CENTER The Investor Service Center was established to provide various facilities to investors including electronic incorporation and post incorporation services, streamlining business procedures, eliminating red-tape, promoting good governance, and improving transparency and accountability. The Center presents a single regulatory approval for the establishment, capital increase or expansion of businesses. Representatives from relevant government entities are present at the Investor Service Center to facilitate required approvals and expedite the investment process. All this has contributed to improve the ease of doing business.
The Centers provide investors with integrated and distinctive investment services throughout the lifespan of the company without any need to go elsewhere.
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Amendment to Legal Status
Amendments to Legal Agreements
Company Establishment
Company Liquidation
Electronic Signature
Ordinary General Assemblies
Import and Export Services
Residency Services
Mergers and Demergers
Work Permits
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AFRICA 2019
CONDUCIVE LEGISLATIVE AND LEGAL FRAMEWORK New Investment Law No 72 of 2017 Guarantees No restriction on receiving or repatriating foreign fund No cancellation of licenses or withdrawal of land and property Guaranteed residency in Egypt for foreign investors Projects cannot be nationalized Facilitated exit procedures
Incentive A fixed 2% customs fees on all imported machinery and equipment A tax exemption of 50% on investment costs in the developing areas (zone A) 30% tax exemption of the investment costs in the more developed areas (zone B – All other areas) up to a maximum of 80% of Paid Up Share Capital and within three years after the issuing date of law Exemption from stamp tax and registration fees on all incorporation contracts, finance and mortgage contracts for 5 years.
Additional Incentives Approval of special customs zone for imports and exports of the project Bearing all or part of the cost of connecting utilities to the project after start of operation
COMPANIES LAW No. 159 of 1981 The provisions of the law are applicable to stock companies, partnerships limited with shares, limited liability companies, and Single Member Company Prescribes all corporate governance rules and regulations. Regulates management and control issues and fiduciary duty and fiscal policies Regulates the rules of board of director’s meetings, ordinary and extraordinary general meetings Improves access to SMEs Regulates merger and acquisition of companies.
MICROFINANCE LAW No. 141 of 2014 Regulate microcredit provided by non-bank financiers Improves access to finance Promotes entrepreneurship and start-ups Improves risk management Enhances transparency
FINANCIAL LEASING AND FACTORING LAW NO. 176 OF 2018 Enhances financial inclusion Promotes non-banking financial instruments Allows licensed companies, associations and
Reimbursement of %50 of the cost of land allocated for industrial projects if the project starts operation within 2 years from land delivery
civil institutions to practice micro-finance activities
Training of technical labor at the cost of the government and allocating land free of charge for strategic projects.
New mechanisms like reorganization regime
*You can read more on www.investinegypt.gov.eg
Investment Regime
New Bankruptcy Law no. 11 of 2018 Mediation at any stage Shortens the timeline for procedures Penalties have been mitigated.
Inland Technological zones Free zones Investment zones
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STREAMLINING INVESTMENT PROCEDURES Accreditation Office Private sector service providers licensed by GAFI to assist investors to review and apply for projects’ licenses and permits It issues certificates that investor are financially and technically compliant GAFI will accept the certificate and issue required license within 60 days Non-reply is considered an implied approval
Golden License Strategic projects and PPP project in infrastructure, renewable energy, transportation or ports can be established and operated by virtue of a single license to be issued by the cabinet.
Facilitating Exit Producers 120 day from receiving liquidation request Concerned authorities are required to advise of any liabilities which are due If no such notification has been received then the company is discharged of any liabilities
Fostering a Digital Revolution in Egypt The Ministry of Investment and International Cooperation, in the past two years, embarked on a bold digital transformation journey of the services provided in an attempt to cut red tape and to streamline business processes.
Automation of the Land Allocation System The Ministry of Investment and International Cooperation has put in place a central land allocation system (www. investinegypt.gov.eg) which allows a unified and standardized reservation system of land electronically through the Investment Map Portal. There is a cabinet decree issued in October 2019 stating that allocation of industrial land can only be done through the online Investment Map Portal, which is a very important step towards unifying the processes for land allocation even if the ownership is decentralized.
Customer Relationship Management (CRM) The CRM has become a crucial tool for the Ministry of Investment and International Cooperation and is used to follow up on the investors’ requests until we successfully close a deal with an investor; the investors then can directly use our electronic service to establish their company in one day. CRM is not only about lead management but also to manage investors’ comments and complaints. We also provide our investors several ways to communicate with us. First, there are tablets available at our Investment Service Centers to rate the services they use. Second, we do periodic analysis and ask the investors to provide us with the challenges that they might face in order to increase the efficiency of our services. We also introduced a call center reachable to answer all different inquiries investors can have.
E-Services MIIC is the first governmental entity in Egypt that succeeded in digitizing a complete process by using cashless payment methods and digital signature technology. Additionally, we have the first legally binding electronic document, which is the company incorporation contract. Additionally, to guarantee the quality and sustainability of the digitalized service MIIC a introduced business intelligence platform, which allows to monitor and follow up the performance of colleagues provide the services. Its used for decision making purposes and provides high level dashboards as well as detailed reporting capabilities. Also, they have recently launched the general assembly services, quarterly FDI reporting system as well as the company name reservation service. Soon MIIC will launch company amendment services which cover 33 processes which are being automated. MIIC is in the process of digitizing millions of paper documents via an archiving system.
Free Zones Finally, one of the big projects we are working currently is digitalizing and automating the free zones and their related services which already achieved the first milestone which is the automation of the import/ export declarations.
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INVESTMENT OPPORTUNITIES IN EGYPT
AFRICA 2019
EGYPT’S SECTORS
MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY
ACCESSIBLE AFRICA WEEK: 14th till the 18th of July 2019, and is the first of its kind in Africa. The purpose of this week was to get talking, thinking and learning about digital (web, software, mobile, etc.) accessibility, inclusion and persons with disabilities. The week drew attention to the information needs of persons with disabilities (PwDs) and highlighted the role that information and communication technologies (ICT) can play in overcoming various information challenges and societal barriers faced by PwDs through education, training, and employment.
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THE EVENT BROUGHT TOGETHER: ICT decision-makers software designers developers persons with disabilities as assistive technology users
From five African countries: South Africa, Tanzania, Nigeria, Kenya, and Egypt, the hosting country
AFRICA 2019
ICT TRAINING GRANT FOR AFRICAN PWDS: MCIT is launching a training grant for persons with disabilities with a minimum knowledge of computer skills. The training develops the personal and technical skills of trainees and enhance their innovation capabilities by providing technical training in communications and information technology programs, which includes the following areas:
IT Essentials e-marketing Introduction to innovation and accessibility
THE TRAINING TOOK PLACE OVER TWO SESSIONS, WITH 60 PARTICIPANTS PER SESSION, AS FOLLOWS:
Training for African Youth with Disabilities (15th – 25th of September 2019) Training for African Woman with Disabilities (29th of September - 7th of October 2019)
Both training sessions had participants from a variety of African countries and witnessed a total of 111 participants.
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EGYPT’S SECTORS
MINISTRY OF TRANSPORT First: Roads and Bridges
Projects: New national road network phase I and II Nile axes
250 bridges constructed
Second: Railways
Projects: signaling systems, coaches, surveillance cameras, civil works, new machines, railway stations, railway coaches, passenger trains, and locomotives Service level improvement procedures: cleanliness in stations/metro coaches
Third: Underground (Metro)
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Projects: new air-conditioned trains, modern gates, Metro lines, escalators, elevators, electric trains, air-conditioned trains Service level improvement procedures: cleanliness in stations/metro coaches, electrical connections, ensuring timelines for projects are implemented
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Fourth: Land and Dry Ports
Land Border Ports Dry ports and logistics areas
250 bridges constructed
Fifth Maritime Transport
Damietta Sea Port Alexandria Sea Port
Red Sea Ports
Sixth: River Transport
Waterways River Information System Buoys
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EGYPT’S SECTORS
MINISTRY OF ELECTRICITY & RENEWABLE ENERGY The efforts and achievements being implemented until the end of 2019:
Ongoing projects in the field of conventional power plants in Aswan and West Cairo
Ongoing projects in the field of electricity generation from new and renewable energy with total capacities of 3921 MW:
Ongoing projects in the field of strengthening electricity transmission and distribution networks:
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First: Wind Power with total capacities of 2400 MW Second: Solar Energy with total capacities of 1521 MW 27 solar power plants with a total capacity of 1240 MW were commissioned and the project is expected to be completed in 2019/2020.
A: Strengthening transport networks B: Strengthening distribution networks
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AFRICA 2019
COOPERATION WITH AFRICAN COUNTRIES The Egyptian Electricity and Renewable Energy Sector is keen to build bridges of joint cooperation with sister African countries through solidifying its presence in the African continent.
THE SECTOR WORKS ON A NUMBER OF AXES: 1st axis: Providing technical support for electrical projects in Sudan, Congo, Rwanda, State of Somalia, Comoros, Mali and the state of Burundi. 2nd axis: Establishments of electrical projects: Through the grant provided by the Egyptian government, power stations, and electrical distribution networks were implemented in the towns of Wau-PorRumbek and Yambio. Through the Egyptian Initiative for development of the Nile Basin Countries run by the Ministry of Foreign Affairs, the following projects (are being prepared/ implemented): Construction of solar power plants in Eritrea. Action is taken to establish a workshop for the maintenance of transformers in the state of Burundi. Action is being taken to implement 4 megawatt solar power plant in Uganda. The construction of 2 megawatt solar power plants in the Democratic Republic of the Congo and the passage of the first project for the deterioration of security and political instability in Kinshasa. The construction of power plant in South Sudan and the passage of the first project for the deterioration of security and political instability. 3rd axis: Maximizing the role of Egyptian Companies to invest in the African Continent. Some Egyptian companies set up factories for electrical tasks in the Nile Basin countries such as Sudan, Ethiopia, and the Democratic Republic of Congo, Nigeria and Ghana. 4th axis: Project “The Cooperation with African Countries”, a human resources development program that conducted a series of training courses, delegated experts to African countries in the conventional and renewable energy fields. The main mission was to improve outcomes of participants through leaders, staff and professional development of top management working in the electrical utilities in African countries, and to develop their capabilities towards optimizing the exploitation of available natural resources in their countries.
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EGYPT’S SECTORS
MINISTRY OF PETROLEUM AND MINERAL RESOURCES In the Exploration and Production Field The largest natural gas discovery, “Zohr”, in the deep waters of the Mediterranean Sea was achieved in record time: - Announced 1 year and a half after the signing of the agreement. - Development contracts were signed only six months after the disclosure. - Production started at the end of 2017, about 28 months afterwards.
For the first time: Natural gas production reached its highest level by more than 7 billion cubic ft/day in September 2019. The average daily production of crude oil and gas reached 1.9 million barrels of oil equivalent. Attained approximately $1.5 billion savings annually. The Minimum Investment in Exploration in 5 years reached 16 billion dollars from the conclusion of 98 oil agreements. A Regional Seismic Survey was conducted for the regions of the Western Mediterranean, Red Sea and Gulf of Suez, covering more than 150,000 km² of Egyptian waters.
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The first international bid for ten sectors in the Red Sea was launched after the demarcation of borders with the Kingdom of Saudi Arabia. The Egypt Upstream Investment Platform project for the marketing of the upstream opportunities was implemented. ExxonMobil accessed the Egyptian upstream oil and gas market through the bid round of the Egyptian Natural Gas Holding company (EGAS) in 2018.
Foreign Partners’ Arrears For the first time since 2010, the accumulated dues of international companies have been reduced by 86% to reach approximately $900 million on 30/6/2019 after it had reached $6.3 billion during 2011/2012.
FIELDS
Natural Gas The first regulator for the activities of the gas market was established as an independent body. The highest residential natural gas delivery rate was reached during the fiscal year 2018/2019 at 1.23 million units/year, bringing the total number of housing units to 9.78 million units.
AFRICA 2019
For the first time: The fees of the natural gas delivery to residential units is being paid by monthly installments over a period of 6 years, free on interest and without any down payment. The highest rate for vehicles conversion to work with natural Gas during the fiscal year 2018/2019, is estimated at 32.3 thousand vehicles/year, bringing the total number of vehicles converted to 276 thousand vehicles. Self-sufficiency of gas was achieved for the first time since 2010 after the arrival of the last imported shipment in September 2018.
Upgrading Citizens’ Services For the first time, a GPS tracking system has been installed in all vehicles operating in the transport of petroleum products to the stations to ensure the control and the follow-up of the arrival of the product to the locations. All stations, distribution outlets, major consumers and distributors have been coded and added to the electronic system, so that follow-up is done through a central screen at the Egyptian General Petroleum Corporation. Supply and installation of ATG devices to monitor fuel balance inside the tanks for all fueling stations all over Egypt and link them to the production companies and to the Egyptian General Petroleum Corporation to close the loop by the end of 2019. Installation of SCADA system at the Egyptian General Petroleum Corporation and was linked to the ATG system. For the first time, Gasoline 92, which was previously produced in Cairo and Alexandria, was produced in the Upper Egypt region to ensure its continuous availability, to reduce reliance on long-distance transport between governorates and to achieve product stability in Upper Egypt.
was launched in 2016 to focus on increasing the sector’s contribution to the overall development of Egypt.
Mineral Resources The new mineral Resources Law No.198 of 2014 and its Executive Regulations were issued with the aim of optimizing the exploitation of mineral resources. The first comprehensive strategy for the development of the mining sector was prepared in order to increase the contribution of the mining activities in the Egyptian GDP. The first Egyptian Company to market and sell phosphate was established in the international market, which is the first step to maintain the prices of Egyptian phosphate.
Refining and Petrochemicals For the first time, the total investment for the operation of the two largest petrochemical projects (MOPCO in Damietta and Ethydco in Alexandria) amounted to $4 billion. The first pilot project for the Mostorod Petroleum Refining Project was launched in 2019. - One of the largest oil refining projects in Egypt and Africa which contributes to realizing Egypt’s vision of becoming a pivotal regional center for energy circulation, as well as enhancing environmental performance by preventing 93,000 tons of sulfur dioxide from polluting Cairo. - It will save 30-35% of our diesel imports. - It will save over $300 million, annually, of the state’s budget. Oil exports increased to $11.6 billion in 2018/2019, compared to $8.9 billion in 2017/2018, $6.6 billion in 2016/17, and $5.8 billion in 2015/16
The Egyptian Oil & Gas sector Modernization Project An ambitious program for the development and modernization of the petroleum sector
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EGYPT’S SECTORS
MINISTRY OF ANTIQUITIES
INAUGURATIONS
28 January 2019: Moved two obelisks from Tanis to the new administrative capital
2 May 2019: Opening of Fatima al-Shaqra mosque in al-Darb al-Ahmar
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19 April 2019: Inauguration of Karnack’s Opet temple for the first time since its discovery
9 May 2019: First phase of Saint Catharine’s monastery development project completed 8 August 2019: Andalus Garden Obelisk in Zamalek moved to the Alamein and erected there 29 September 2019: Inauguration of Prince Yousef Kamal palace in Nagaa Hamady, Qena 29 September 2019: Inauguration of Bedaba monestary in Nagaa Hamady, Qena
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AFRICA 2019
PROJECTS
Grand Egyptian Museum Project Giza Plateau Development Project Baron’s Palace Sphinx Avenue
Improvement of Visitor Services at Archaeological Sites and Museums
ARCHAEOLOGICAL MISSIONS
13 April 2019: The Egyptian mission in Saqqara discovered the tomb of the nobleman Khuy, which dates back to the end of the Fifth Dynasty
18 April 2019: Mission of the Ministry of Antiquities in Luxor discovered a cemetery in the area of Dra’ Abu Naga belonging to the 18th Dynasty
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EGYPT’S SECTORS
MINISTRY OF TOURISM In November 2018, the Ministry of Tourism launched the Egypt—Tourism Reform Program (E—TRP), a structural reform program with stakeholders. Issued on World Tourism Day, September 27, 2019, the first progress report of E—TRP ensured transparent monitoring. H.E. President Abdel Fattah El Sisi was awarded by UNWTO for his Excellency’s commitment towards tourism by launching the Egypt — Tourism Reform Program and his Excellency’s contribution to the 2030 Agenda for Sustainable Development.
Recently the unprecedented revenues from tourism have accelerated by 28% to record USD 12.6 billion in 2018/19 exceeding historical outturns.
Tourism grew by 16.5% in 2018 ahead of the 3.9% global average, continuing as a key driver of economic growth, job creation & social advancement across the country.
Egypt ranked 1st in Africa on “Country Branding”. Changing the narrative on Egypt’s tourism sector is a priority within the Egypt — Tourism Reform Program (E—TRP); showcasing what the country has to offer through defining strategic positioning and developing messages covering the experiential journey of audiences worldwide; on traditional and modern mediums. This ranking came as a result of the World Economic Forum’s official data partner “Bloom Consulting” Country Brand Tourism report analyzes almost 685 million online searches on Egypt’s tourism brand and its strengthened prominence on the digital and social landscape.
Egypt scored 4th highest in Travel & Tourism performance improvement in the 2019 World Economic Forum Travel & Tourism Competitiveness Report that measures the set of factors and policies that enable sustainable development which in turns contributes to the development and competitiveness of a country. Egypt moved up 9 places to rank 65th globally out of 140 countries.
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AFRICA 2019
Egypt has been awarded the World Travel & Tourism (WTTC) Global Champion Award at the 2019 Global Summit for promoting tourism resilience. The award recognizes strong leadership by a country that has demonstrated success in recovery from adverse events linked to the hugely improved security infrastructure, which is a priority for the Egyptian government. In addition, tourists have been voting with their feet and this has been reflected in the strong numbers showcased in 2017 & 2018 and the further expected flow in 2019.
Egypt: the first country in Africa and MENA to launch the World Economic Forum “Closing the Gender Gap Accelerator”. This accelerator aims to increase the number of women in the labor market, promote more women into economic leadership positions, close wage gaps and ensure that women have the skills demanded by the future of work and the Fourth Industrial Revolution.
Continuing with the implementation of the pillar of institutional reforms outlined in the Egypt—Tourism Reform Program (E—TRP), the Ministry of Tourism announced the development of the Egyptian Umrah Electronic Portal. Digitalizing the required procedures will help facilitate the process of this religious journey.
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EGYPT’S SECTORS
MINISTRY OF WATER RESOURCES AND IRRIGATION
The Ministry of Water Resources and Irrigation (MWRI) aims to achieve water security for all by working on four main pillars:
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Enhance availability of fresh water resources
Improve enabling environment
Rationalize water use
Improve water quality
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AFRICA 2019
IMPACT OF MWRI PROJECTS:
PROTECTING
IMPROVING
INCREASING
Creating spaces on canals banks for the establishment of plantations and parks to increase employment opportunities
Use of solar energy to operate wells
Storage of rain and flood water
life and infrastructure on shore constructions the country from the dangers of floods and droughts the aesthetic form of the Nile River and the corniche the infrastructure of vertical agricultural expansion projects
soil properties Nile river navigation, increasing the capacity of river and land transport, and encouraging tourism efficiency of irrigation water management, rationalizing water use and ensuring water access for all users
agricultural productivity and economic profitability tourism investment and job opportunities new agricultural areas efficiency of water distribution clean energy
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EGYPT’S SECTORS
MINISTRY OF SPORTS & YOUTH
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AFRICA 2019
OBJECTIVES
Spreading the spirit of loyalty and belonging between youth Deepening political participation Encourage young people to work together and volunteer Developing cultural and scientific awareness as well as launching creative skills Preparing young people for the requirements of the labor market and train them to launch entrepreneurship projects Expanding leisure activities
Supporting youth and sports services in the governorates
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DEVELOPMENT OF FIVE & LEGAL STADIUMS IN YOUTH CENTERS:
CAIRO
GIZA
MONOFEYA
SHARQIA
BEHEIRA
GHARBIA
MENIA
BENI SUEF
QALYUBIA
DAMIETTA
ASSIUT
SOHAG
QENA
KAFR EL-SHEIKH SOUTH SINAI
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DAKAHLIA
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ASWAN
LUXOR
THE RED SEA
NEW VALLEY
MATROUH
FAYOUM
NORTH SINAI
AFRICA 2019
SPORTS DEVELOPMENT PROJECTS
National Initiative for the Disabled Project’s goals Provide basic motor skills Developing a desire for continuous physical improvement
Sports centers for all the villages that do not have sports services Project’s goals Finding an outlet for male and female students and their families to practice various activities in the schools of education and the Azhar Treaty in villages
Implementation of the first sports meeting of sports projects and activities of the central administration of sports development programs in Luxor Project’s goals Increase the number of sports meetings in the governorates
SPORTS ACHIEVEMENTS:
Total medals gained in 2018-2019 25 Federations achieved a total of 593 medals on the Arabic, African and International level 273 golden medals, 165 silver medals, and 155 bronze medals
ACHIEVEMENTS OF THE SPORTS SECTOR THE CHAMPIONSHIP SECTOR: The results of the mission of the Arab Republic of Egypt in the African Games in Morocco.
THE POSITION OF THE ORGANIZATION OF THE AFRICAN CUP OF NATION EGYPT 2019 African Cup of Nation Egypt 2019 Stadiums (Cairo Stadium, Alexandria Stadium, Suez Stadium, Air Defence Stadium, Ismailia Stadium, Al-Salam Stadium) Investment for Africa
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AFRICA 2019
EGYPT’S SECTORS
MINISTRY OF STATE FOR EMIGRATION AND EGYPTIAN EXPATRIATES’ AFFAIRS FIRST: Activating the Participation of Egyptian Scientists Abroad
Specialized conferences with ministries and national bodies “Egypt can conferences” Establishing partnerships and twinning programs between universities, national bodies and international bodies Providing training opportunities from the youth in Egypt
SECOND: Combating Illegal Immigration
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Training programs to raise awareness Youth awareness programs Family awareness programs Positive alternative opportunities programs Entrepreneurship programs Launching community development projects
Cooperating with international organizations and government agencies
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THIRD: Preserving the Egyptian Identity of the Diaspora
Youth Camps and educational courses Providing Arabic language and educational programs for children of Egyptians living abroad Establishing specialized forums for dialogue and social interaction between Egyptians abroad Participation of children of Egyptians abroad in national youth forums and conferences
FOURTH: Providing Services for Egyptians Living Abroad
Activating the one-stop system in all departments and government agencies that provide services to Egyptians abroad System of solving problems and obstacles facing Egyptians abroad
Launch the ‘Ask and Suggest Live’ initiative
FIFTH: Providing a Comprehensive Insurance for Egyptians Living AbroadTransport Target 262 Implemented
294
Completion rate
112%
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SIXTH: Enhancing International Cooperation and Egypt’s Foreign Policy in the Field of Immigration
Completion of the third phase of the Egyptian-Greek Cypriot Revival Initiative
SEVENTH: Maximizing the Participation of Egyptians Abroad in National Devleopment Efforts
Increase cash transfers through post offices and national banks Launching initiatives to involve Egyptians abroad in national development plans 7 initiatives launched
EIGHTH: Working on organizing conferences and forums to communicate with Egyptians abroad and encourage dialogue on investment opportunities in Egypt as well as provide guidance on how to best support national projects and tourism 76
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EGYPT’S SECTORS
MINISTRY OF MILITARY PRODUCTION
FIRST: Efforts to cooperate with African countries
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Cooperation in the industrial fields (civil and military) with the State of Ghana
Establishment of a waste recycling plant in Algeria Implementation of the bombing of Rufiji Dam in Tanzania Supply capacity equipment and tractors to Chad Establishment of a logistic complex for civilian products for military production in Benin Establishment of (pharmaceutical factory - timber complex - palm farm and oil extraction) in Gabon Supply (gas cylinders, extinguishers, and tableware) to the State of Kenya Marketing of war production products in Sudan, Gambia, Madagascar, Côte d‘Ivoire and Democratic Republic of Congo
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SECOND: Development of national projects for the benefit of the Ministries and State Bodies
110 projects with a total value of LE 3268.1 million Egyptian pounds 110 projects with a total value of LE 14787.13 million Egyptian pounds
THIRD: New Civil Companies
Six companies have been established Seven companies under process of being established
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GOSOUR PROJECT
In land goods transport.
Realizing the importance of transport and logistics in enhancing trade among the African continent countries, the Holding Company for Maritime & Land Transport, affiliated to the Ministry of Public Business Sector (MPBS), embarked on launching the “Gosour� project.
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EGYPT’S SECTORS
MINISTRY OF PUBLIC ENTERPRISE SECTOR WHAT IS IT: Forming a complete supply chain of door-to-door services between exporters and importers among African countries, from Egypt to East Africa. The following services will be provided:
In-land goods transport on both sides.
Consolidation/deconsolidation and customs clearance on both sides.
Weekly regular shipping line starting from Sokhna, Egypt to Mombassa, Kenya.
Warehouses services.
The intermediation/ marketing/business development services to open new markets and ensure matchmaking between exporters and importers.
The Insurance Holding Company (affiliated with the Ministry of Public Business Sector) provides insurance through the entire supply chain.
Land and maritime transport.
Logistics.
Insurance and intermediation/marketing.
RESULTING IN:
The establishment of logistical hubs.
Composing of warehouses.
Showrooms.
Intermediation Company office in East African Countries.
The intermediation business will be run by Native Business Development professionals, using an Electronic Catalogue of all inputs and outputs of listed businesses, with the objective of enhancing intra-African trade of both final goods as well as intermediary goods. The first phase of the project, the regular weekly shipping line, was launched in October 2019, from Ein Sokhna to Mombassa.
HOW TO PLACE ORDERS? Through the “Gosour” mobile application, downloadable at: https://play.google.com/store/apps/details?id=com.mpbs.gosour&hl=en https://apps.apple.com/eg/app/gosour/id1468115875 The remaining components of the project will be launched during the second quarter of 2020. For further information, please email: dtadros@mpbs.gov.eg
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Free Trade Agreements
Jobs
Growing economy
Empowered women
Resilient
Green Energy
Heart of Africa
Connected
Sustainable
Skilled
Huge Markets
Educated
Dynamic Digitized
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Inclusive
Opportunities
Impact Investments
Transforming Africa
Young Entrepreneurs
Competent Innovative
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T
he Africa 2019: Investment for Africa Forum will take place on the 22nd and 23rd of November 2019, in the New Administrative Capital, Egypt, under the high patronage of H.E. Abdel Fattah Al Sisi, President of the Arab Republic of Egypt. This unique Pan-African Forum will pave the way for greater multilateral cooperation, innovation and sustainable development. This opportunity will further unify and foster efforts for achieving Africa’s development objectives as seen through the African Union’s Agenda 2063 vision.
The Forum will further act as an opening for African leaders to unify their efforts for sustainable development, through the main themes of the Forum:
Impact Investment for Inclusive Development.
Investing in Human Capital
Entrepreneurship, Innovation and Women’s Empowerment
Infrastructure, Connectivity and Renewable Energy
Industrial Transformation and Digital Economy
The African Free Trade Agreement (AfCFTA), Cairo Cape Town Road line pilot project, and other bilateral agreements will act as a steppingstone for further cooperation among African nations and foster further investments through the Forum. These efforts will focus on roads, railways, ports, energy and ICT development. Egypt’s investments across Africa are significant. A total of 45 Egyptian companies invested in projects across the continent between January 2003 and July 2019, including some of the top Egyptian companies: Elsewedy Electric, Mobiserve, Wadi, Reyada Construction Industries, Banque Misr, and many others. As an investment friendly country, Egypt is a committed partner and investor in Africa. Egypt is also one of the first countries to sign the AfCFTA Agreement to create jobs that will improve the standard of living of Africa’s citizens.
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The 2019 Africa Forum will set the ground to organize, implement and action strategies for attracting more investments, discuss developmental issues, promote intra-African collaboration, and mobilize investments.
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ONE PEOPLE ... ONE GOAL ... “PROSPERITY FOR ALL”
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