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Finance min. says Sisi reshaping Egypt’s economy

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Egypt Independent

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Finance Minister Mohamed Maait said Wednesday that President Abdel Fattah al-Sisi was reshaping Egypt’s economy by strengthening the private sector to play a greater role in economic development.

Addressing an annual economic conference of the Hapi Journal, Maait said the “State Property Policy Paper” contributes to the development of an economic constitution that aims to increase the contribution of the private sector to investments and national production, and to maximize its production, export and competitiveness capacities. in regional and global markets. An effort, he added, is being made through the diversification of partnership models with the private sector to obtain the highest economic return on state assets.

Work is underway to establish strong mechanisms to regulate the market and provide “golden” investment opportunities in promising sectors, so that the business community and investors can benefit from the improved infrastructure, Maait said. during the conference.

The government, Maait said, is keen to listen and engage with its development partners to come up with what would effectively help boost the investment climate and overcome barriers.

He added that Egypt will host the international climate summit, COP27, in November, noting that it is in line with green incentives aimed at maximizing environmentally friendly projects that will be implemented in partnership with the sector. private and in accordance with the National Climate Plan. Strategy for change 2050.

This is done to ensure the sustainability of clean investments, reduce harmful carbon emissions and improve Egypt’s competitiveness on the environmental performance index, the minister said.

He referred to efforts to increase the share of government-funded green public investment to 50% by 2025.

According to Maait, the current global economic challenges necessitate maximizing agricultural and industrial production efforts, strengthening domestic industry and deepening the local component – all of which entails continuous investment incentives to advance economic activities and make room for the private sector.

The Minister highlighted numerous government initiatives aimed at boosting productive activities including the golden license through which investors can obtain a one-time approval to establish and operate their projects in a number of vital areas.

He also cited recent amendments to the Value Added Tax Law, which included exemptions on machinery and equipment imported from abroad for use in industrial production for a period of one year from the date of their publication.

Under the amended law, goods or services exported by or imported into economic zone projects should enjoy zero-rate tax, the minister added.

Maait also spoke about tax and non-tax incentives for medium, small and micro-enterprises, as well as simplified procedures, with the aim of encouraging this vital sector, which is considered the main pillar of sustainable economic growth because it helps to create jobs and reduce poverty rates.

The national project for the development and mechanization of tax and customs systems has had a positive impact on the business climate in Egypt, with the industrial sector registering an increase in the rate of contribution to GDP, the minister said at the conference.

Many foreign companies are now looking to Egypt as a regional base for their business, and in the country a new generation of young entrepreneurs is emerging, Maait concluded.

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