Dr. Mohamed Farid Saleh, Egypt’s Minister of Investment and Foreign Trade, has outlined a new strategic direction for the country’s economy, emphasizing a robust public-private partnership to foster sustainable growth and attract investment. Speaking at an event hosted by the American Chamber of Commerce in Cairo, the minister detailed a series of reforms and initiatives aimed at strengthening the nation’s business environment, with a significant focus on supporting the startup ecosystem.
The announcement signals a pivotal moment for Egypt’s economy, with the government, through bodies like the General Authority for Investment and Free Zones (GAFI), aiming to move beyond potential and toward faster, more efficient, and predictable execution of pro-growth policies.
Three Urgent Priorities
Minister Farid detailed three immediate priorities designed to address foundational challenges and improve the operating landscape for all businesses.
First, the ministry will prioritize digitalization and the simplification of institutional procedures. The goal is to resolve existing issues for companies on the ground, acknowledging that a series of small, consistent reforms in technology and bureaucracy is the most effective path to accelerating growth.
Second is a focus on improving the measurement of economic data. “What cannot be measured cannot be managed,” the minister stated, highlighting the need for accurate savings and investment data to formulate sound economic policies. The objective is to achieve a 6-6.5% growth rate by raising investment levels, which requires precise data to attract the necessary foreign direct investment (FDI).
The third priority is to reduce human intervention in corporate decisions, particularly in mergers and acquisitions. The ministry aims to align its processes with international best practices, ensuring corporate transparency and data availability while minimizing bureaucratic hurdles.
A New Venture Capital Fund for Startups
In a major development for the MENA tech scene, the minister revealed plans to establish a large investment fund dedicated to venture capital. The initiative will be a collaboration with the Sovereign Fund of Egypt and has reportedly attracted the interest of the World Bank.
This fund is designed to solve the critical “bottleneck” in the local funding landscape, specifically the lack of institutional capital for Series A, B, and C rounds. By providing this crucial growth-stage financing, the government hopes to prevent promising Egyptian startups from having to relocate to find institutional investors (LPs) for their expansion phases.
Tackling Cold Bureaucracy
Addressing a common pain point for founders, Minister Farid acknowledged the challenge of “cold bureaucracy.” He explained that procedural delays, which may seem insignificant to a government agency, can create major crises for entrepreneurs operating on tight timelines and limited resources.
Recent reforms in the capital markets and insurance sector are enabling new financial instruments, such as listed venture capital funds, which can further support the ecosystem and provide innovative pathways for growth.
Strategic Trade and Localized Development
The minister also outlined a new “effective targeting” strategy for foreign trade, moving away from a scattered approach. This involves building detailed stakeholder maps of international markets, analyzing trade data to craft precise policies, and digitalizing export support services to make them accessible to every company in Egypt.
Furthermore, he stressed the importance of “localizing” investments by distributing them across Egypt’s various governorates. This strategy aims to ensure that economic development is tangible and felt by citizens nationwide, fostering inclusive growth and reinforcing market awareness of ongoing reforms.
About The General Authority for Investment and Free Zones (GAFI)
The General Authority for Investment and Free Zones (GAFI) is the principal government body responsible for regulating and facilitating investment in the Arab Republic of Egypt. GAFI works to promote Egypt as a premier investment destination, streamline business operations, and create a favorable environment for both domestic and foreign investors across various sectors.
Source: eltaameer
