Egypt has announced the signing of a major investment partnership deal with several prominent entities, aiming to boost the country’s foreign currency resources and economic development.
The deal, which was approved by the Egyptian cabinet on Thursday, was signed on Friday in a ceremony witnessed by Prime Minister Mostafa Madbouly at the cabinet headquarters in the New Administrative Capital. A press conference followed the signing to explain the details of the deal, which is considered the largest direct investment deal in the country’s history.
The deal involves a partnership between the Egyptian government and major entities in various sectors, such as infrastructure, logistics, port management, food industries, pharmaceuticals, traditional energy, renewable energy, e-payment, digital financial and information solutions. The total value of the deal is estimated at $7.7 billion, according to the cabinet.
The deal benefits
Madbouly stated that the deal achieves the state’s development objectives outlined in the National Strategic Urban Development Plan, and marks the beginning of several investment agreements the government is currently working on to increase the country’s foreign currency resources.
He added that the deal reflects the confidence of major investment entities in the Egyptian economy and its ability to overcome challenges, especially amid the COVID-19 pandemic. He also noted that the deal will create hundreds of thousands of job opportunities, contribute to economic recovery, and involve various Egyptian companies and factories in the implemented projects.
Madbouly emphasized that the deal, along with others, will help stabilize the foreign exchange market and improve the economic situation. He also pointed out that the government is finalizing an agreement with the International Monetary Fund (IMF), and continues to empower the private sector and increase its participation in the developmental sectors.
The deal challenges
Despite the positive aspects of the deal, some experts and analysts have raised some concerns and questions about its feasibility and transparency. They have called for more clarity and disclosure about the terms and conditions of the deal, the identity and credibility of the partner entities, the expected returns and risks, and the legal and regulatory framework governing the deal.
Some critics have also warned that the deal may increase the country’s external debt and compromise its sovereignty and national security. They have urged the government to ensure that the deal serves the national interests and does not harm the local industries and markets.
