Egypt ready for FDI, says Egyptian-American Enterprise Fund

CAIRO – 24 June 2017: Egypt’s economy currently has the “right macroeconomic fundamentals” to attract foreign direct investment, Chairman of the Egyptian-American Enterprise Fund (EAEF) James A. Harmon said.

In a report submitted to the U.S. House Committee on Foreign Affairs on June 21st, Harmon said that investing in Egypt would be a sign of confidence in the economy. “This creates a multiplier effect and helps bolster the government’s economic reform agenda,” he said.

Harmon praised the cabinet’s approval of the bankruptcy law to protect investors, and the parliament’s passing of the new investment law.

“Egypt’s private sector remains underdeveloped and it suffers from gaps in financing, infrastructure and talent which curbs its ability to expand and grow the economy, which would result in underserved markets, high unemployment rates and low financial inclusion,” Harmon stated in his report.

The EAEF was established by the Obama Administration following the uprising in Egypt in 2011 to address its economic issues.

Harmon said the EAEF had invested $98 million in Egypt over the past two years and attracted $110 million in foreign investment.

In 2015, the EAEF invested $21 million in electronic bill payments firm Fawry. It also invested $56 million in consumer finance provider Sarwa Capital. It also seeded Algebra Ventures and Tanmiya Capital to fund small and medium enterprises (SMEs), startups and entrepreneurs.