High interest rates carry multiple risks to future of investment in Egypt: EJB

On improving the investment climate in Egypt and attracting foreign capital over the next six months, the EJB shared its vision exclusively with Ahram Online in which it stated that interest rate spikes are always applied in light of the Egyptian deflationary policy to aggregate demand and absorb liquidity from the market.

“This affects the market's movement. Therefore, the best way to improve the investment climate in the future is by announcing monetary policies that ensure the stability of monetary, commercial, and economic policies to raise the confidence of Egyptian and foreign investors,” the EJB added.

The association noted that this could strengthen investment incentives and ensure their implementation, while controlling administrative systems governing investment. The systems include the establishment of companies, licensing, facilitating industrial lands and making them available to investors at low prices. It will also help if other incentives for manufacturers were announced. Taking advantage of the current crisis prompted many companies to return to work in Egypt, such as BMW and OPPO.

Moreover, seizing the power of the Egyptian market and the volume of consumers, as well as the existence of more tax control mechanisms, strong oversight of tax system, and the inclusion of all companies in the system will ensures expansion and fair competition, the association pointed out.