1. Egypt – India relations has been on an upward trajectory since last year. Egypt joining the BRICS is encouraging deeper relations between two countries. How do you envision the impact of this progress on business and investment side?
Last year was indeed a remarkable year for the Egyptian –Indian cooperation thanks to many factors. To begin with, on the official level both heads of our countries exchanged official visits which resulted in a strategic agreement aimed at boosting cooperation in multiple aspects.
We also witnessed growing interest from India for investing in strategic sectors. I would like to focus on Renew Energy and OCIOR as two major Indian companies entering the green hydrogen and green ammonia production in the Suez Canal Economic Zone (SCzone).
More investments from Indian companies were added in the fields of chemicals and plastic production like the renowned Flex films- a subsidiary of UFLEX India who have been in the Egyptian market for more than 10 years and trust our investment climate by expanding their business withmore than 200 million USD investments in the SCzone.
There are many benefits that prompted Egypt to join the BRICS bloc, most notably strengthening partnerships regionally and internationally, and maximizing the benefit of the preferential advantages provided by cooperation and trade exchange agreements, whether in terms of attracting investments or opening new markets for exports, as well as the compatibility of the BRICS economic visions with the goals of Egypt Vision 2030. Egypt’s addition to the block is believed to bring new dynamics that will make BRICS stronger and more effective. We value India’s welcoming to Egypt joining the BRICS. India is a founding member of BRICS that will give the needed support and this new partnership will help strengthening our relations. 2. Indian companies have a growing desire in exploring opportunities in Egypt. Please give us an overview about Indian investments in Egypt and how GAFI plays its role as the IPA of Egypt in supporting the Indian business community in Egypt?
There are more than 50 big Indiancompanies investing more than 3 billion USD in Egypt.
These investments are concentrated mainly in these sectors:
• Chemicals and petrochemicals
• Textiles and ready made garments
• Plastic manufacturing
• Agro industries
Examples of Top Indian companies in Egypt:
• TCI Sanmar (sanamr Group):manufacturing chemicals like Poly Vinyl Chloride (PVC)
• Flex Films (Uflex Group): plastic films and PET production
• Galaxy Chemicals: surfactants and hygiene components production in the Suez Free Zone
• Birla Carbon (Aditya Birla Group):black carbon production ( Amreyaprivate free zone)
• Dabur Ltd: manufacturing cosmetics & hygiene products
• Scib Paints (Asia Paints Group)
• Monginis: bakeries and confectioneries
• Velocity Apparels: ready made garments
• Embee & Vibi : ready made garments
Recent Expansions:
• Flex Films
• Monginis
• Dabur
Recently, new and vital sectors garnered Indian investors interest to expand their business in Egypt like green hydrogen production, automotive assembly, mining and ICT.
Examples of New Indian investments in Egypt:
• Green Hydrogen & Green Ammonia: Renew Energy- OCIOR
• ICT: Tech Mahindra
• Chemicals: Platinum Industries Ltd- Abdos ltd.
• Engineering: EKC for compact gas cylinders
GAFI is -and has always- been keen to extend the needed support for Indian investors starting from the guidance to the best investment scheme to facilitating their investments process until their project incorporation in Egypt.
GAFI is also a member of the “India Unit” under the Egyptian cabinet including concerned governmental bodies to discuss means of cooperation
between India and Egypt. Narendra Modi, India’s prime minister attended the India Unit meeting during his last year visit to Egypt.
GAFI follows up on regular basis to resolve any impediments that might face Indian companies operating in Egypt. We participate regularly at the India Business Forum in Egypt (IBF) to deliver recent updates regarding the reform of the investment climate and discuss latest status with Indian companies operating in Egypt.
Our success to resolve these impediments encouraged existing investors to expand their business as well as being a promoter ofinvestment climate in Egypt.
I would like to seize this opportunity to invite Indian companies to expand their investments in Egypt in diverse industries and sectors as green hydrogen, automotives and auto component. pharmaceuticals, textiles, ICT,education,and renewable energy among other strategic sectors.
Finally I would like to bring to your attention that GAFI became affiliated to Ministry of Investment and Foreign Trade headed by Minister Dr. Hassan El Khatib who hosted a meeting with the Egyptian Indian BusinessCouncil (EIBC). The meeting tackled trade and investment relations between Egypt and India business community who exchanged their proposal for strengthening ties between both sides under the guidance and support of the ministry.
3. The 19th CII India Africa Business Conclave is being held under the theme “ Creating One Future”. What will be the role of GAFI in this conclave and how do you see Egypt as a vital player in strengthening value chains integration?
The conclave is considered a prominent event to us and Egypt has always been keen to participate in the conclave. GAFI participated in the different rounds of the conclave for consecutive years benefiting from the network of high profile government officials and private sector which the conclave avails. The current 19thround will wtiness stronger engagement from GAFI as we participate as speakers in one of the most important sessions as well ass playing our role in meeting with officials and business community who consider Egypt as their hub for expansion and growth.
GAFI intends to demonstrate the fact that Egypt plays a key role for linking the Indian companies with the African market leveraging on many appealing factors like the strategic location by the Suez Canal, developing infrastructure ,the legal framework providing guarantees and incentives for investment also adding offering various investment schemes catering to the nature of each project like the Free Zones managed by GAFI and the Sczone located in a strategic area, the ease of doing business through the electronic platform, the Investment map offering opportunities for investment online, and the Golden License.
All these factors combined with the stability state makes Egypt poised for creating an integrated network for industries that would indeed benefit from the ease of access to the the whole African content.
I would like to invite Indian companies to explore investment opportunities in the fields of renewable energy, green hydrogen, ICT, textiles, auto feeding industries, and agribusiness.
4. What steps has GAFI taken to improve the investment climate in Egypt and address any challenges that investors may face?
GAFI has recently launched its new institutional strategy, by mid-2023, where its mission has particularly focused on the importance of sustainability, namely, sustainable investment which is green, environment friendly, responsible and considers governance considerations.
GAFI’s New Strategy has Five Main Pillars:
1- Promoting and Attracting Investment,
2- Improving the Investment Climate – through
a. streamlining procedures & simplifying processes as well as
b. developing new investment schemes, to accelerate the expansion of competitive strategic clusters;
3- Ensuring Institutional Development,
4- Promoting Entrepreneurship
5- Establishing GAFI as an information & data center for Investment.
GAFI has also developed Egypt’s Investment Map, which is a virtual platform for investment opportunities in Egypt.
Digital Transformation:
It is also worth noting that GAFI has started its digital transformation process whereby investors’ services are being streamlined, and simplified prior to being automated.
Incentive packages for targeted sectors:
GAFI is working on a guide that consolidates incentives across pivotal sectors starting withtourism, logistics, healthcare and targeting waste management, real state, automotive, ICT, small and medium enterprises. We believe that by centralizing this information, we empower investors with the knowledge they need to make informed decisions. Whether it’s navigating tax incentives, exploring investment opportunities, or understanding regulatory frameworks, our guide serves as a roadmap for success.
5. What are the mechanisms GAFI is adopting to promote innovation and Entrepreneurship in Egypt?
Let me begin by illustrating GAFI efforts through the Entrepreneurship and Start Ups Permanent Unit:
It is a unit affiliated with the Council of Ministers and headed by GAFI CEO. It is established to serve as a single umbrella that brings together the government entities concerned with entrepreneurship in Egypt in order to achieve a main objective, which is to propose appropriate policies, laws and regulations for the growth and prosperity of startups in Egypt.
The main objective of establishing the Unit is to propose appropriate policies, laws and regulations for the growth and prosperity of startups in Egypt.
A set of mechanisms were set in place, which are considered sub-objectives of the Unit, as follows:
A. Establishing e-platform for the Unit that includes all information about the entrepreneurship and startup environment in Egypt (Ecosystem) that are available in all relevant stakeholders, and equity funds of entrepreneurs with all their data, business incubators and accelerators, events, courses and periodic events, available training centers and courses, information on how to incorporate companies, and technical information, provided that this development is followed-up by the technical committee of the technical secretariat of the Unit.
B. Communicating with entrepreneurs and startups to address the obstacles they face, as well as their suggestions and ideas to develop appropriate solutions for them by amending regulatory procedures and laws in a manner consistent with the nature of these projects, to be presented to the competent authorities for implementation.
C. Capacity building and providing technical support to entrepreneurs, startups and supporting entities by exploiting the capabilities of the Unit’s members.
During the inauguration of the Unit’s first premises on May 22, 2024, the Unit’s digital platform was launched.
The first version of the platform includes the following:
1. All services provided by the Unit’s member to entrepreneurs and startups in Egypt (Ecosystem), divided into three main stages:
• Pre-incorporation services
• Incorporation services
• Post-incorporation services
In each stage, all services provided to entrepreneurs by various government entities, affiliated authorities, and initiatives are presented. The platform is available in both Arabic and English.
2. A comprehensive mechanism for addressing complaints and obstacles from entrepreneurs and startups, referring them to the relevant authorities for assessing, and ensuring prompt action. Continuous follow-up is carried out until the concerned party is informed of the outcomes.
The second version of this platform will be developed to include all information about the entrepreneurship environment in Egypt, as well as various funding entities (incubators, accelerators, funds, etc.). Additionally, it will provide data and information about startups in Egypt, categorized geographically across governorates.
After the opening of the Unit’s first premises, it has become easier for entrepreneurs to connect with the Unit through the office, which offers the following key services:
• An office for the electronic incorporation of startups, serving as a Fast Track to ensure the prompt completion of incorporation procedures for entrepreneurs.
• A representative available to answer entrepreneurs’ inquiries, provide consultations, and offer various mentoring and guidance sessions in different fields.
• A representative to receive complaints from startups and entrepreneurs for assessment, and referral to the relevant authority for further assessment and resolution, in accordance with the agreed-upon mechanism of the complaints committee.
• Providing shared workspaces that can be used by startup owners and entrepreneurs..
6. What are the key outcomes of the Unit’s work, and how will the Unit contribute to attracting more investments for startups?
1) Providing clear and precise definition for startups and entrepreneurship projects, and setting controls for this definition.
2) Launching the Unit’s e-platform
3) Developing simplified mechanisms for the exit of startups.
4) Forming a voluntary advisory council for the Unit, fully represented by the private sector, and the entrepreneurship and startups environment. The council’s role is to assist the Unit in achieving its main objective by proposing appropriate policies, laws, and regulations for the growth and prosperity of startups in Egypt.
With these integrated procedures, the Entrepreneurship and Startup Unit will be able to stimulate the investment environment and attract the necessary capital to support the growth of this vital sector. In doing so, it will contribute to enhancing the role of startups as a key driver of innovation and economic development.
7. How do you see the collaboration between Egypt and India in supporting start ups?
India is becoming one of the prominent countries the world working on building a strong eco system for entrepreneurship and innovation.
This year, we had the pleasure to welcome the START UP India initiative delegation in Egypt. We had the opportunity to know more about India’s experience in this field and discussed the possible means of cooperation and using our platforms to create a hub for Indian startups to expand to the African and MENA market.
Egypt and India share many similarities. A growing youthful population aspiring for innovation and leadership is one of them and we believe that sharing our mutual experience will enrich both sides to grow further in the field of entrepreneurship and startups.