Ahmed Heikal: Egypt’s Budget Deficit Forces Gov’t ToTemporarily Lose Investment Track

The Chairman and Founder of Citadel Capital Ahmed Heikal said Egypt’s economy is encountering serious major challenging, primarily providing sufficient amounts of energy needed for factories. He pointed out that the country has to start with finding solutions for the severe energy shortage, so that it would manage to eliminate the rest of the economic challenges.

“We live in the middle of an energy induced balance of payment crisis, all the challenges the Egyptian economy is facing pass by the energy sector.”

He stated that rationalization could be achieved through proper pricing. “We have been mispricing energy for a long time” he commented during attending the second annual conference of the AmCham MENA Regional Council hosted by AmCham Egypt,.

Heikal further added that the state’s budget deficit has contributed to the public sector’s loss of the investing track as it is currently unable to make any major investments.

He said the country’s economic challenges relies upon adopting sensible decisions right on time.

“Decision makers don’t want to make decisions” said Heikal, emphasizing that government officials must be given the authority to make decisions unless it’s proven beyond doubt that they have benefited from these decisions.

“Local banks finance the budget deficit and the government bureaucracy is hesitating and less likely to take decisions.”

Heikal emphasized the need to establish multiple safety nets to enable the least  fortunate to meet their basic needs and to face any coming price rise: “All of us will become poorer, yet some are less fortunate and it is those we will have to shield.”

Heikal concluded saying he is still optimistic referring that Citadel Capital (CCAP.CA) will continue injecting more investments in the Egyptian market within the coming period.