Emergence of Egypt as Africa’s Economic Giant

 

Emergence of Egypt as Africa’s Economic Giant

H.E. President
Abdel Fattah Saeed Hussein Khalil el-Sisi

Egypt's Economic Success under H.E President Al Sisi
Egypt succeeded in achieving a positive growth rate amid the Covid-19 Pandemic.

The Egyptian government allotted huge sums of money from the state budget to develop the health and education sectors as well as providing financial subsidies for the Per Diem employees and the most affected households.

In a report issued in September 2020 by Moody’s on the credit Ratings, praised the Creditworthiness indices of Egypt.

Goldman Sachs Bank affirmed the ability of the Egyptian economy to survive the economic repercussions of covid-19 pandemic pointing out that about 50% of the Indirect Foreign Investments, which exited on the onset of covid-19 Pandemic, returned back.

In addition, some Touristic inflows were achieved despite the Pandemic as Wizz Air (Third largest low-cost airline in Europe) announced that it would operate three-weekly flights on the route Milano-Alexandria.

Egypt's Major Tourist Attraction,
The Great Pyramid of Giza

A major boost was also seen after Royal Dutch Airways (KLM) resumed its flights to Cairo after a three-year suspension. This is in addition to the resumption of flights from Russia and Kazakhstan to Egypt as its Government put all the necessary precautions agreed upon into effect on receiving of Tourists.

Egypt managed to achieve a decrease of its annual Deficit rate for the overall country in August 2020 to be 3.4% against 4.6% in July 2020 and 6.7% for the same month last year. This is owing to the continuous prices decrease of the food, drinks, grains and other food commodities groups.

 

Since the Egyptian State has declared its imminent target to increasing Government Investments for the current Financial year 2020/2021 by 55% compared to the past year hence leading to a total Government Investment amounting to 280 Billion EGP (225 Billion EGP Financed from its state’s Public Budget).10% of these investments are to be directed to projects of Clean Water and the Sewage Disposal Grids.

Egyptian authorities hope increased trade with the rest of Africa will help raise Export Volumes, enable their banks to participate in Mega-Infrastructural projects and as well reduce the country’s Commercial Deficit.

It’s no wonder; this has seen Egypt’s Giant Companies establish themselves in East Africa as seen with:

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In April 2020,Commercial Bank of Egypt (CIB), (Egypt’s largest Private Bank with over $24 Billion in Assets) establishing its presence in Kenya through a majority stake acquisition of Nairobi based MaiFair Bank (MBL) in a $35 Million Deal which will allow Egypt’s CIB to take over a network of Five branches and a portfolio of High-Net-Worth Individuals and Corporate clients.

 In August 2020,Egypt’s Mega Contracting Company; Wady El Nile setting up its branches in East Africa’s Kenya and Uganda with hopes of expansion to Tanzania, Rwanda and Burundi.Read More: https://k254nairobinews.blogspot.com/2020/11/wady-el-nile-operations-in-kenya-kenya.html

  CIB and other Egyptian Banks support on Africa’s Mega-Projects like the $3 Billion Hydroelectric Dam in Tanzania currently under El Sewedy Electric Company and Arab Contractors.

others are The Earliest Egyptian company to set up their presence in Kenya,i.e Wadi Degla Holding which operates Wadi Degla Runda Club, off Kiambu Road, Nairobi, Kenya.  Read More :https://wdclubsafrica.com/countries/kenya/index.php/clubs/runda

 

Egypt’s Government has for the first time in history provided Accurate Digital Registers for the Real estate and the Agricultural lands in order to assist in solving the problem of eroding agricultural lands and as well lessen the utility crisis which was created when the 2011 Revolution was exploited in the random expansion of buildings in the agricultural lands.

It’s worth noting that Egyptian Businesses already benefit from the Country’s Membership in the Common Market for Eastern and Southern Africa (COMESA) among other trade agreements, it also hopes to benefit from the recent African Union-Led; African Continental Free Trade Area (ACFTA) once implemented. The deal seeks to remove most tariff and non-tariff obstacles in cross-border businesses and is expected to more Triple the Volume of trade on the continent according to the United Nations Economic Commission for  Africa (UNECA).

 

Editors Key Point Analysis

"Egypt’s economic policies have greatly contributed to the success of its economic stability, hence there’s no doubt that Egypt has surely emerged as Africa’s Economic Giant.

The move by Egyptian Government on digitizing the real Estate and Agricultural Land Registers will highly improve the balance on environmental management of resources and control of land degradation.

It’s Evident with recent Egypt’s Unemployment Rate Drops to 7.9% in Q3 2020 down from 9.6 in Q2 2020 amid the Coronavirus Pandemic, hence declaring a positivity in Egypt’s Job Market.

Another excellent Commendable work by Egypt is its recent declaration as the 7^th Largest overall contributor to United Nations Peacekeeping and as well 3^rd Largest contributor to United Nations Police with over 3,000 Egyptian men and women serving for peace Keeping."

Viva! Egypt.

Shukran!

Compiled By,

Muhoro_P_Wamuyu

K254 Nairobi News

http://k254nairobinews.blogspot.com