Egypt regains position as first destination for foreign direct investment (FDI) in Africa, new African Development Bank's Country Results Brief confirms.
The African Development Bank has published the 'Country Results Brief' on Egypt. The report, which looks at Egypt's economic situation, puts a spotlight on the Bank's investments in the energy, agriculture, sanitation, industrial and social sectors.
Over the past five years, Egypt has regained its position as the first destination for foreign direct investment (FDI) in Africa. It has a diversified economy, with services accounting for about half of the gross domestic product (GDP), industry contributing 34% of GDP and agriculture 12%.
The results brief highlights the Bank's performance in Egypt, including how it intends to help the country achieve its Vision 2030, focused on achieving high, inclusive and sustainable growth in a competitive economy.
The country expects to invest more in human capital in the short and medium term. With 1,000,000 young people entering the labour market every year, creating a dynamic private sector that can provide productive jobs is a crucial element for the country's human capital development.
Egypt is the Bank's second largest regional shareholder and third client in terms of cumulative historical approvals, making it the Bank's strong partner. Ongoing Bank financed operations particularly target the energy, water and sanitation sectors, and rural development by providing access to finance in direct response to country needs.
"Our partnership is key to helping Egypt bring about sustainable and inclusive economic growth", said African Development Bank's Country Manager Malinne Blomberg. "Effective infrastructure, macro-economic reforms and access to social services, which we promote, are the bedrock of a vibrant and growing Egypt. It is critical for the Bank to accelerate development pace with our High 5 priorities."
This Country Results Brief describes recent economic and social trends in Egypt, particularly those related to the Bank's five key development priorities enshrined in the High 5s: Light up and Power Africa, Feed Africa, Industrialise Africa, Integrate Africa, and Improve the quality of life of the people of Africa. These High 5s are based on the a set of indicators from the Bank's 2016-2025 Results Measurement Framework. It also reviews how the Bank manages to optimise its investments by improving people's quality of life.
In the country's energy sector, the Bank financed the Ain Sokhna power plant, which started operating in 2015, with two 650 MW gas/oil-fired units to generate power the growing industrial zones.
The Bank's operations in 12 governorates, including Assiut and Domyat, has helped over 20 000 farmers to purchase essential inputs at the right time for crop and livestock production.
The Bank has extended support to reform brought down the average time to comply with industrial licensing requirements to just 7 days for low-risk and 30 days for high-risk industries, down from 643 days in 2015. This enhances the country's business environment.
Through the pioneering Women's Economic Empowerment Project, in which the Bank invested $9 million, 4,306 loans have been provided and more than 24,000 women have received training so far.
Today, the Bank has a portfolio of 31 operations in Egypt, valued at US$2.98 billion. The Egypt Country Results Brief can be downloaded here.
