The Clap:
Egypt recorded the fastest pace of growth in its foreign direct investment (FDI) inflows in FY 2024, recording a 12.3% YoY leap to USD 10.04 billion, according to Hossam Heiba, CEO of the General Authority for Investment and Freezones.
Growth drivers:
Heiba attributes the surge in international investment to Egypt’s efforts to position itself as a regional hub for green energy, technology, communications, agriculture, industry and logistics, health care, and tourism.
Remember:
Swiss investment bank UBS says if Egypt can secure a 30% increase in FDIs and investment portfolio flows along with a return of remittances to the levels of the fiscal years 2021–2022, then the country could secure USD 19– 20 billion in net cumulative cash flow by June 2025.
In other news:
Mainly off the confidence spurred by the wrap of the Ras El Hekma agreement, foreign investors bought up USD 15 billion worth of local bonds this year, the Financial Times wrote.
Where we stand:
Post- EGP devaluation, foreign purchases of local debt in March increased by USD 23.7 billion month-on-month, bringing up the total to EGP 1.54 trillion, Asharq Business wrote, citing CBE figures. International financiers currently hold approximately a tenth of our local debts, FT noted.
