Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
AfricaMarch 31 2022

Egypt aims to grow role as African and Middle Eastern trade hub

Egypt’s minister of finance, Mohamed Maait, spoke with Alex Irwin-Hunt about the country’s main economic development priorities, as well as efforts to become a regional trading hub following the implementation of the African Continental Free Trade Area in January 2021.
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
Egypt aims to grow role as African and Middle Eastern trade hub

Q: What are the main economic development priorities of the Egyptian government during the coming years?

A: We’re focused on continuing efforts on several fronts, such as ensuring sustainable economic growth, creating jobs and social protection networks, and fiscal consolidation and macroeconomic stability in the context of the International Monetary Fund-supported reform programmes. 

Our key success indicators include achieving a sustained primary surplus level of 2% of gross domestic product (GDP); bringing our overall deficit to below 5% of GDP by fiscal year 2024/2025; bringing our debt-to-GDP ratio to below 85% by fiscal year 2024/2025; and achieving an inclusive and multifaceted sustained real economic growth of around 6% over the medium term. 

These targets are anchored by safeguarding fiscal sustainability, creating adequate jobs that will trickle down to reducing unemployment rates, and supporting inclusive and sustainable economic activity. 

We have tripled our public investment over the past four years to improve infrastructure and human capital development, as well as targeted support for the manufacturing sector and export promotion

We have also tripled our public investment over the past four years to improve infrastructure and human capital development, as well as targeted support for the manufacturing sector and export promotion. By 2024, we aim to increase the contribution of the private sector to our economy from its current level of 26% of GDP to around 50%.

Q: What have been the highlights of Egypt’s recent embrace of fintech and digitalisation? 

A: At the Ministry of Finance, we have adopted fintech across the board in the last few years. For example, our budgets are now fully digitalised, including preparation, execution and reporting. All of our payments are electronic and all revenues are collected electronically.

We have installed point-of-sale terminals throughout the country to allow people to pay for services by card. We encourage people to pay for all services — taxes, custom duties and pension payments — electronically, by adding extra charges for cash payments. 

All of our tax procedures are now in the process of being digitised. We have already launched the first and second stage, while the last stage will be insurance. All of our tax procedures are unified electronically so the taxpayers don’t need to go to any tax offices. They can use the platform and deal with the tax authority electronically. So all business-to-business invoices are electronic and instantly reported to the tax authority.

We have also been working with the Central Bank of Egypt to let people use credit cards, onto which we can credit 70% of a person’s salary and pension. We have started implementing a law stating that all pensions and salaries must be electronic, but we are moving in phases. We are ensuring that financial inclusion among our citizens is gradually improving.

Q: It’s been just over a year since the African Continental Free Trade Area came into effect. How are you promoting Egypt as a trading hub for both Africa and the Middle East? 

A: The government’s plan to improve the business and investment conditions will be built on deeper and wider digitised infrastructure. As such, this will help facilitate trade, monitoring and evaluation, and custom process rendering. This will make doing business in Egypt easier and more cost efficient. 

For example, we have an advanced cargo information system that allows us to track all of Egypt’s imports and exports, and send notifications to importers within 48 hours. As a result, Egypt can be a regional trade and business hub in Africa and the Middle East. We aim to attract more foreign direct investment and build better connections with major investors in sectors that will be considered key in the post-pandemic era, such as telecommunications, manufacturing and export-related sectors.

In addition to having the Suez Canal as a major trade route, Egypt will improve its standing as a country welcoming to investors and business leaders with port expansions and easing trade policies. We are trying to create an enabling environment for business development, as Egypt aims to provide an integrated infrastructure system to serve investment projects. 

This includes road network communication and the modernisation of customs and tax systems aligned with international standards. In addition to achieving macroeconomic stability, [this will] pave the road for achieving sustainable and inclusive economic growth. 

This interview has been edited for brevity and clarity.

Was this article helpful?

Thank you for your feedback!

Read more about:  Africa , Egypt