Egypt Aims to Double TSFE Assets to Strengthen Economic Growth

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Tue, 04 Feb 2025 - 12:17 GMT

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Tue, 04 Feb 2025 - 12:17 GMT

CAIRO – 4 February 2025: Hassan El-Khatib, Minister of Investment and Foreign Trade, announced that the Egyptian government plans to double the assets and investments managed by The Sovereign Fund of Egypt (TSFE) to better reflect the true economic value of the country. This initiative is part of Egypt’s broader strategy to enhance economic competitiveness and sustainability.

 

Speaking at the Egyptian Venture Capital Summit 2025, El-Khatib emphasized the government’s focus on maximizing returns from underutilized state assets. This will be achieved through effective management, innovative strategies, and strategic partnerships with the private sector to drive sustainable growth.

 

Established in 2018, the TSFE has a capital of approximately $12.7 billion and currently manages $637 million in assets. It operates through four sub-funds specializing in various economic sectors, according to official data. The government aims to expand and optimize these assets to unlock their full economic potential.

 

El-Khatib highlighted that Egypt is undergoing a major transition from a state-driven economic model over the past decade to a framework where the private sector takes the lead in economic development. This shift is designed to encourage investment, enhance productivity, and foster long-term growth.

 

To support this transformation, the government is working to improve the business environment, promote private sector participation in economic decision-making, and increase Egypt’s global economic competitiveness. These efforts are aimed at attracting foreign direct investment (FDI) by simplifying regulations, streamlining business procedures, and removing barriers for investors.

 

Additionally, El-Khatib stated that the ministry is actively working to create an investor-friendly climate by strengthening institutional and legislative frameworks, reducing bureaucratic obstacles, and facilitating investment procedures. To further enhance investor confidence, the government is implementing financial, monetary, trade, and regulatory reforms to support Egypt’s foreign trade expansion.

 

The minister also emphasized the government’s commitment to reducing non-tax financial and procedural burdens on investors. One key initiative is the reduction of customs clearance times, which is expected to enhance trade competitiveness and lower logistical costs. These reforms aim to create a more efficient and cost-effective business environment, ultimately benefiting the overall economy.

 

Looking ahead, Egypt aims to improve its global trade rankings and position itself among the top 50 economies worldwide in terms of trade performance. The government is also working towards significantly boosting exports, further solidifying Egypt’s role as a key regional and international trade player.

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