FDI to Egypt rose 14% in 2014, slowed in North Africa; UNCTAD says

Foreign direct investment (FDI) to Egypt inched higher 14 percent in 2014 hitting US$4.8 billion while the North African region declined 15 percent to US$11.5 billion with the global (FDI) inflows falling by 16 percent to US$1.23 trillion.

A report released on Wednesday by the United Nations Conference on Trade And Development (UNCTAD) showed that North African and global FDI inflows suffered from increasing geopolitical risks and other factors.

The rise in FDI depicts a slow recovery since Egypt’s economy was hit by sporadic violence and political turmoil following the 2011 uprising.

However, since the election of President Abdel Fattah al-Sisi in the second half of 2014, his government began to liberalise the economy and reform the state budget by cutting subsidies and introducing new taxes.

FDI inflows to Egypt remain well below the US$11.4 billion garnered by the country in 2009, central bank data reveals.

In March, Egypt hosted an economic conference to lure investors back into the country, garnering some US$33 billion in investment deals and around US$92 billion in MOUs.

Source: Ahram Online