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Egypt has jumped six places to 114th out of 190 countries in the World Bank’s 2020 business rankings, from 120th in the 2019 report.
“The Arab Republic of Egypt made starting a business easier by abolishing the requirement to obtain a certificate of nonconfusion and improving its one-stop shop.” the World Bank said in its “Doing Business 2020” report released on Thursday.
The report said Egypt’s reforms had adopted improved the investment climate and facilitated procedures in four core areas, including enterprise establishment. This made Egypt improve 19 spots globally.
Egypt has also advanced six spots in acquiring electricity index due to notable reforms it implemented, including electricity infrastructure improvement and declining electricity delivery for beneficiaries.
“Egypt improved the reliability of electricity supply by implementing automated systems to monitor and report power outages.” the report added.
The North African country has climbed 15 spots in small investors’ protection given the legislation and decrees that protect them.
“Egypt strengthened minority investor protections by requiring shareholder approval when listed companies issue new shares.”
The report also showed that Egypt has improved three spots, compared to last year, in taxes payment.
The country had adopted a new electronic system for the application of value-added and income tax acknowledgements, electronic payment of disbursements.
The new electronic system, according to the report, has eased the way investors deal with the taxation system.
“Egypt made paying taxes easier by implementing an online system for filing and payment of corporate income tax and value-added tax.”
The report also placed Egypt among the top 25 countries in the world regarding the number of reforms.
The economies that showed the most notable improvement were Saudi Arabia, Jordan, Togo, Bahrain, Tajikistan, Pakistan, Kuwait, China, India, and Nigeria, according to the report.
source: amwalalghad
The European Bank for Reconstruction and Development (EBRD) expects to keep investments in Egypt at over 1 billion euros this year, boosting its equity portfolio through a delayed privatisation programme, its regional director said.
The bank intends to participate in an expected share offering for state-run Alexandria Container and Cargo Handling Company, among the first of dozens of state-run companies planning to sell stakes, Janet Heckman, managing director for the southern and eastern Mediterranean, said in an interview on Wednesday.
It also hopes to help finance a monorail project that will link Cairo to a new capital being built in the desert, and for which a consortium led by Bombardier has been identified as the preferred bidder, she said.
Set up in 1991 to help ex-communist countries of eastern Europe shift to market economies, the London-based EBRD has extended its operations over the last decade to more than 35 countries, from Morocco to Mongolia.
It started operating in Egypt in 2012, a year after the uprising that toppled former president Hosni Mubarak and threw the country into turmoil.
Last year Egypt overtook Turkey as the EBRD’s largest country of investment, with about 1.2 billion euros invested in renewable energy, power, property and tourism, agribusiness and transport.
“It’s been quite a quick ramp-up. As of last month we’ve invested roughly a little over 5 billion euros ... in 95 projects, all but 11 of which are private sector,” said Heckman.
More than half those investments have come since 2017, a year after Egypt began implementing a three-year economic reform programme tied to a $12 billion loan from the International Monetary Fund.
The reforms included a sharp devaluation of the Egyptian pound that made Egypt more attractive to private capital.
Equity only makes up about 5% of the EBRD’s portfolio in Egypt, but that share was expected to rise, said Heckman.
“This year in conjunction with the IPOs and other investments we’re looking at, we expect it to shift significantly,” she said.
The state owns vast swathes of Egypt’s economy.
A programme to launch share sales has been held up since last year, partly due to emerging market uncertainty.
Egypt has been praised by international lenders for its speedy reforms, though austerity measures and inflation have left many Egyptians struggling to get by.
Gross domestic product is forecast to top 5% for a second year running, but investment outside the energy sector has been falling.
“People want to see a period of continued stability and progress, because it’s a big decision to begin significant manufacturing facilities in a country,” said Heckman.
She said she was encouraged by the start-up scene, signs big Egyptian companies are investing more domestically and expanding infrastructure for investors such as legal and consulting firms.
“We continue to be quite bullish and optimistic about Egypt ... it’s a big country, almost 100 million people and at the same time it’s greatly positioned in terms of export opportunities, which I think have been highly underdeveloped,” Heckman said.
source: reuters
Egypt’s legislators pass country’s first data protection regulation law
30 Jun 2019 Written by Admin AdminThe regulations are to protect data and privacy for all Egyptian citizens and European Union citizens in Egypt.
Egypt - Due to the increasing developments of the internet, maintaining personal data has become very difficult. Hence, under the state’s efforts to prevent illegal spreading of personal data over the internet, the country will apply data protection regulation in Egyptian Law.
The data protection regulations were finally approved by parliament on Monday, June 17. The regulations are to protect data and privacy for all Egyptian citizens and European Union citizens in Egypt.
The regulations contain provisions and requirements pertaining to the processing of personal data of individuals.
However, the personal data considered to be information about the individual can identify them directly or indirectly, using names or pictures, or any other data identifying the individual’s economic, cultural, or social conditions.
Meanwhile sensitive personal data is what reveals the physical, or mental health, the financial, religious data, and political opinions also are sensitive data.
The data protection regulation obliges companies which deal with personal data to follow these regulations.
Personal data may not be collected, processed, or disclosed by any means without permission from the concerned person. The law shall punish any person that does not comply by imprisonment for a period of not less than three months and a fine between EGP 100,000 and EGP 1m.
Moreover, the second article of the law prohibits the collection, transfer, storage, preservation, or processing of sensitive personal data, or making it available without a license from the centre, with the obligation to obtain written consent of the concerned person.
Article 14 prohibits the transfer or sharing of personal data to a foreign country, except by a license from the centre. The law would fine any person between EGP 300,000 and EGP 3m.
For electronic commercials, article 18 requires permission from the receiver to get any commercial messages.
Any violation can lead to imprisonment or a fine from EGP 100,000 up to EGP 1m.
source: zawya
Fitch Ratings upgraded Egypt's rating to B+ with a "stable outlook" against the previous rating B, and announced that the continued healthy performance of Egypt's external financing would depend on the flexibility of the local currency. Indicating that the Egyptian pound has not experienced a strong instability since the strong reduction in 2016.
The Egyptian central bank allowed earlier, a flexible exchange rate for the pound in November 2016, which contributed to the loss of the local currency more than half of its value against the dollar.
Fitch considered that the local currency was weak, but moderate, during the period when the foreign investment in securities took place between mid-April and the end of December, with the pound falling 1.7 percent against the dollar.
The agency showed a stronger return of the foreign investment in 2019, which helped the Egyptian pound to rise by 3 percent by mid-March. It also predicted that Egypt's external debt service would average about $10 billion in 2019-2020, representing about 12 percent of the country's current external receipts, which is in line with the average of similar obligations in the country under the B classification.
source: Union of Arab Chambers
The Swiss foreign direct investment in Egypt reached $1.6 billion, marking an increase of $400 million during the last two years, according to Minister of Investment Sahar Nasr.
Nasr added that the Swiss investments take place in the fields of industry, energy, pharmaceuticals, financial services and food.
The minister also referred to the cooperation between Egypt and Switzerland in implementing development projects at an amount of CHF 330 million (LE 5.7 billion), and in supporting new projects which focus on economic sustainable growth and creating job opportunities through the cooperation strategy until2020 at CHF 86 million (LE 1.5 billion).
She elaborated that Egypt is not only the gate of Switzerland to Africa but also to the Middle East, expressing Egypt’s aspiration to cooperate with Switzerland in Africa, in light of Egypt's Presidency of the African Union during the current year.
This came during the celebration of 110 years of economic and trade relationships between Egypt and Switzerland, in the presence of Egypt’s minister of investment and Swiss Foreign Minister Ignazio Cassis, who is currently visiting Egypt and Swiss Ambassador to Egypt Paul Garnier.
For his part, Cassis pointed out to the importance of enhancing the economic relations and increasing mutual investments and projects between both countries, affirming that Egypt is the gate of Swiss investments to African markets.
He also referred to the cooperation between both countries in the fields of education, industry and transportation, stressing his country’s keenness on the human element especially in the education field.
Cassis noted that this event comes in conjunction with the celebration of 110 years of Egyptian-Swiss economic relationships.
source: Egypttoday
In the embrace of new technology, every step counts in Egypt’s digital transformation, according to Jacques-Emmanuel Blanchet CEO, HSBC Egypt.
Egypt’s banking architecture is getting a digital upgrade. Efficiency and personalisation are at the top of the list of preferences as one of the world’s oldest civilisations undergoes a very modern disruption.
Progress and change
Two of Egypt’s national goals, to modernise its economy and to support a rapidly growing population, are being carried out within a positive economic outlook. The GDP in the fiscal year 2018 is expected to rise by 5.8%. Egypt’s proactive attitude is driving digital growth in the country’s banking sector and is filtering down to the consumer too. This is largely down to the government, the Central Bank of Egypt(CBE) with the support of the local banking community.
A progressive tone from the top is matched by an enthusiastic response from the banks and the public. This banking ‘marriage’ is bearing fruit.
Seamless customer experience
From the top down, the National Payments Council is putting in a general framework to shift to a less cash-based society, and to create a national system of payment and cards. Meanwhile, the CBE is investing heavily in developing a ‘seamless’ customer experience that is more efficient and easy to use.
Both aim to safeguard the value of human interaction i.e. intensifying the level of trust and loyalty in the customer-bank relationship. The country’s approach includes the promotion of innovative technologies in the design and delivery of financial services. This includes the review of digital banking regulations, and the launch of a fund for innovation and talent investments worth EGP 1bn ($558m).
Digital maturation
From the bottom up, Egypt’s banking community – banks and customers alike – is keen to embrace change. Nearly all respondents, 90.57%, to an HSBC digital survey carried out in Cairo, expect ‘the internet of things’ (the trend towards more devices being online) to have a major impact on their existing business model. Leveraging this appetite for digital maturation is key.
The same applies to tailoring services for different socioeconomic and digitally-able customers. Clear communication to improve understanding within the banking community is vital to build trust and adopt digital banking tools. Patience is also essential, as it will take time to shift the national psyche towards digital banking.
It’s about family
Egypt’s tightknit family and social network must be addressed in banks’ marketing and communication programmes as ‘word-of-mouth’ recommendations carry significant weight when it comes to building reputations and communicating change. The influence of informal knowledge sharing in Egypt will only heighten as the world’s most populated Arab nation gets busier. The United Nations (UN) expects Egypt’s 97 million population today to rise to 120 million by 2030 – a 23% growth in less than 12 years.
As one of the largest multinational banks in Egypt, and with a presence since 1982, HSBC’s unwavering dedication to build its digital knowledge will continue. The bank has been a leading and respected voice on digital advancements for over three decades. Plans to spend $15bn-$17bn on technology, worldwide, up to 2020 are underway, in addition to $6bn in recent years. Such efforts will undoubtedly enhance Egypt’s digital journey, be it through talent creation, research and development, or tech deployment.
Digital toolbox
There are many new digital methods that Egypt’s banking community can use. These include the next generation virtual accounts, enhanced liquidity management, and more streamlined mobile collections and payments. HSBC is always working on how to design and deploy new technologies, including machine learning, artificial intelligence (AI), biometrics and blockchain.
HSBC completed its inaugural blockchain transaction for trade finance this year. This is highly relevant for a growing banking community as each transactional step is entirely transparent and accountable. It is also attractive for Egypt’s growing trade finance market as the country’s gas exports, for example, are likely to rise significantly.
More than half, or 56.6%, of survey respondents to our digital research agreed that international trade has become more difficult over the last three years. This means that making cross-border trade easier by using digital tools is even more critical to sustain Egypt’s global competitiveness.
Challenges to overcome
As with any market in development, some areas need more attention. These include improving cybersecurity, legal frameworks, and scalability. Therein lies the value of collaboration and knowledge sharing, something that HSBC is able to facilitate.
To take an example – globally, banks’ ties with Fintechs are thriving. HSBC’s data showed that approximately $31bn was invested in Fintechs around the world last year. Collaboration agreements and sandbox environments, both promoted by regulators, can help test the relevance of new technologies in Egypt’s banking community.
We must not fear the unknown. Egypt must keep its best foot forward, for every digital step counts.
Source:zawya
Vicat Group to inject $34mln into Egypt’s cement sector
These investments will cover the market’s demand for cement, says company official
Vicat Group, the main developer and partner of Sinai Cement, is planning to invest EUR 30 million (EGP 615 million) in the Egyptian market over the coming period, Vicat Egypt’s CEO said.
These investments will cover the market’s demand for cement, Tamer Magdy added during a celebration at the French embassy in Giza.
For his part, the chairman of France’s Vicat said that the company will continue investing in Sinai despite the current situation.
The Egyptian economy has the potential to recover as it is moving forward on the back of the country’s policies, Guy Sidos stressed.
Source: zaway
سويسرا توقع إعلانًا مشتركًا مع مصر يتضمن استراتيجية التعاون الجديدة للأعوام 2017-2020 بقيمة 86 مليون فرنك سويسري
21 Dec 2017 Written by Admin SAE
تم مؤخرا التوقيع على اعلان مشترك بين الحكومة السويسرية والحكومة المصرية يتضمن استراتيجية التعاون الجديدة بين الطرفين وذلك وفقا لموقع (vetogate.com) الاخباري.
