Egypt remains Africa’s top investment destination – UNCTAD
Egypt has once again been recognised as Africa’s top destination for foreign investment, according to a recent report by United Nations Conference on Trade and Development (UNCTAD), making it the second year in a row for this achievement.
The UNCTAD report highlights Egypt’s resilience. The country has implemented a series of reforms and measures to bolster its investment climate, making it a more attractive proposition for foreign investors.
In the face of global crises, Egypt secured a substantial portion of Africa’s foreign direct investment (FDI). FDI in Egypt reached $9.8 billion in 2023, accounting for 18.6 per cent of the continent’s total FDI. This marks a consistent rise from $9 billion in 2019 and $4.6 billion in 2014.
The Suez Canal Economic Zone is attracting green energy projects, with agreements for green ammonia and green hydrogen ventures totalling $10.8 billion. A new $4 billion green hydrogen production deal has also been announced.
The report highlighted Egypt’s growing appeal as an investment hub in Africa for multinational companies in automotive, pharmaceutical, and electronics industries.
Egypt’s implementation of a streamlined One Stop Shop (OSS) for investment projects in 2023 is a significant procedure, consolidating various licenses and permits for investment activities.
In 2023, Egypt established the Supreme Investment Council, chaired by the President, to enhance investment promotion coordination. The country provides tax exemptions and financial incentives, particularly for green hydrogen promotion.
In 2023, Egypt received $6-10 billion in inflows, while South Africa, Ethiopia, Uganda, Senegal, Mozambique, and Namibia attracted $2-6 billion each.
Meanwhile, Nigeria, the Democratic Republic of the Congo, Ghana, Kenya, Tanzania, Algeria, Gabon, and Morocco received FDI between $1 billion and $2 billion.
Nations with inflows below $1 billion included Niger, Liberia, Chad, Mauritania, Cameroon, Tunisia, Mali, Somalia, Guinea, Congo, Djibouti, and Comoros. Finally, South Sudan, Lesotho, and Angola received no or negative FDI inflows.
UNCTAD is a permanent intergovernmental body established by the UN General Assembly. It offers technical assistance to developing countries to help them utilise trade, investment, finance, and technology for sustainable development.
Attribution: The Cabinet statement
