Egyptian Investment and Industries are Continously Growing

Cairo, Egypt | March 10, 2008 by D-8 Secretariat

Production capacity of a newly established cement factory in Qena governorate, Upper Egypt, will reach 1.5 million tons, the Egyptian Minister of Investment said. Mahmoud Mohieddin said that 30 percent of the factory’s production will be exported.

The remaining 70 percent will be allocated to meet needs of the local market, he added after laying down the foundation stone of the new aluminum factory. The LE 1.6-billion factory will create more than 527 job opportunities, Mohieddin said.

The project, which will be built by the Holding Company for Chemical Industries, the state-owned Al-Qawmiya Cement, the Holding Company for Insurance and Arab Contractors Company, will be completed in September 2010. Mohieddin said Misr Aluminum Company is planning to establish three mega plants to increase Egypt’s aluminum production by 85 percent.

LE 300 mln contracts to be signed in electricity sector

The electricity sector signed on Saturday three contracts with Egyptian companies to link power stations in Tebbin, southern Cairo and Bahtim, north of Cairo, to the national power grid. Egyptian Minister of Electricity and Energy Hassan Younis attended the signing ceremony of the LE 300-million contracts that will be implemented in 10 to 12 months. The Egyptian Electricity Transmission Company (EETC) will finance the project, he said.

Egypt is among the most attractive country according to the World Bank report in 2007, in terms of business and investment. In the report Egypt tops the list of reformers that are making it easier to do business. Egypt greatly improved its position in the global rankings on the ease of doing business, with reforms in five of the 10 areas studied by the report.

Besides Egypt, the other top 10 business reform countries are, in order, Croatia, Ghana, FYR Macedonia, Georgia, Colombia, Saudi Arabia, Kenya, China and Bulgaria. The countries made it simpler to start a business and also strengthened property rights, enhanced investor protections, increased access to credit, eased tax burdens and expedited trade while reducing costs. In all 200 reforms in 98 economies were introduced between April 2006 and June 2007.

Earlier last year, D-8 Secretary General had met with Egyptian Foreign Minister and Investment Minister to discuss the industry and investment in Egypt. The world’s increasing demand of cement and minerals industries had added a significant factor to the growth of these sectors in developing countries. Therefore D-8 plans to set up a Working Group on Mining and Minerals, that will meet annually to discuss issues and potentials in mining and minerals industries. It is also expected that the Working Group on Investment can be held in Cairo, Egypt, since the Egyptian Investment Ministry is one of the finest and dynamic ministry in D-8, and have Roadmap in investment, so that other member countries can learn valuable experiences from Egypt.

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