Italian Delegation reaffirms Rome’s support Egypt Economic and Social Development
The Italian business delegation to Egypt reaffirms Italy’s commitment to support economic and social development in Egypt.
The delegation attended a forum on Tuesday, including more than 100 Italian companies and the Egyptian Ministers of International Cooperation, Investment, Trade, Industry and SMEs.
The forum was organized on Monday, February 23, 2013 by the Italian embassy in Cairo following President Sisi’s visit to Rome in November 2014
The Italian business delegation included representatives of 87 major trade associations in the fields of infrastructure, machinery, energy and power, electrical services, and banking. Italy is a leading trade partner to Egypt. In 2014 total trade reached US$3.204 billion, of which exports were US$1.636 billion and the imports US$1.568 billion. The number of Italian companies working in Egypt climbed to 902 with a total issued capital of US$2.673 billion.
Hosting the delegation Italian Ambassador to Egypt Maurizio Massari said: “This visit takes place at a very important time, three weeks before the Egypt Economic Development Conference (EEDC).
“The Italian business community not only believes in Egypt as an investment opportunity but as an economically stable country. I am confident that the meetings taking place during this visit will further enhance the economic relations and will pave the way for more business and investment from Italy in Egypt.”
Alongside major industrial investment, Italy is also leading the way in helping develop Egyptian small and medium businesses through a debt for development swap programme.
From her part, Egypt’s Minister of International Cooperation Naglaa El-Ehwany highlighted the importance of bilateral relations between Italy and Egypt, notably since the signature of the Economic Cooperation Agreement between the two countries in 1975.
Minister El-Ehwany commented: “The Italian-Egyptian Debt for Development Swap programme is a role model for all our development partners. To date, nearly US$350 million has been committed under the programme to fund a number of remarkable development projects.” The total amounts will be settled by April 2021.
Minister El-Ehwany stressed that while the Egyptian government was creating the right environment for growth through launching national mega infrastructure projects and implementing investment, tax, and subsidy reform, success will only be achieved by creating jobs through promoting SMEs (Small Medium Enterprises.)
“We are targeting the creation of 500,000 to 750,000 permanent jobs each year through SMEs, while also addressing wage structure distortions and promoting the values of work, productivity and competition,” she said. The government’s medium term macroeconomic framework adopts an inclusive growth and development model that will achieve a sustainable long-term private sector led growth, reduce poverty and spread prosperity and benefits of growth to all citizens.
The Italian delegation was led by Carlo Calenda, Italian Vice-Minister of Economic Development who commented: “We are here to send a clear message that Italy is a committed partner and neighbor. We recognize the importance of developing the SME sector and Egypt has much to offer. Egypt is taking all the right steps to set a new course in developing international economic relationship with the world, starting with the EEDC.”
International market commentators agree that Egypt is on the road to recovery. Standard and Poor’s affirmed Egypt’s foreign and local currency sovereign credit rating at B- with a stable outlook, while Moody’s changed its outlook of government bond rating from negative to stable. FDI inflows have relatively increased over the past year and Egypt ranks second after Brazil in terms of highest rates of return on investment globally. Furthermore, the IMF endorsed Egypt’s reform program saying its objectives are ambitious and achievable given its commitment to reform.
With conditions to foreign investment improving and with the ongoing support of long term and key trade partners like Italy, Minister El-Ehwany said: “I am confident that both countries are looking forward to increase the levels of investments as well as the trade exchange between them, with the aim of upgrading our relations to reach a new level of cooperation that is consistent with the common interests and aspirations of Egypt and Italy.”
The Minister invited the Italian delegation to attend the Egypt Economic Development Conference, to be held on March 13th -15th 2015, in Sharm El Sheikh, under the title “Egypt the Future.”
