Government Will Not Repeat Past Mistakes In “Egypt’s Economic Summit” – Minister

Egypt’s minister of planning Ashraf Al-Araby said that the preliminary indicators for the execution rate of governmental investments in the first quarter of 2014/15 fiscal year increased by Four-fold higher than the same period a year earlier, financial newspaper AlBorsa reported.

Al-Araby added that this is an indication of the economic recovery following the damage that occurred in the previous year.

Growth rates in the fourth quarter of 2013/14 fiscal year are around 3.5 % which is the highest rate in the year, and unemployment declined for the first time since 2010 to 13.2%, down from 14% in the previous period, Al-Araby declared.

Regarding the conference, the minister said that a committee was formed, headed by the ministry of cooperation, finance, investment, industry and trade that aims at planning to identify projects types and that ministries cooperate depending on the type of each project.

He said that lessons of the past have been learned and no need to worry excessively and that projects will be presented professionally.

He revealed that the World’s views regarding the Egyptian economy changed following the steps taken by the government to gain control over the situation, and that the positive signs by the economic ratings, credit ratings, and reports by global institutions are a result of energy subsidy reforms and the improvement of economic policies.

The government is currently working on new legislations to improve investment climate and is targeting solving a lot of problems and disputes with investors before “Egypt’s economic summit” next February.

The minister said that the government will present the long term strategy in the summit and will offer a realistic plan for economic and social reform and economic stimulus.

He added that the government will offer mega national projects like Suez Canal development, Golden triangle, Sinai and north coast projects.

Al-Araby revealed that the government needs annual investments exceeding LE 600 billion to reach a 6% economic growth rate as the current rate is 3.5% with total investments of LE 337 billion.

Source: AlBorsa newspaper & Arab Finance