By the end of this year, Egypt’s exports are expected to grow about 10% to reach $22 billion as the country brings in foreign investors looking to set up manufacturing and economic reforms. China on the other hand, is set to be the country’s fastest growing investment partner. Egypt’s trade deficit totaled to $42.64 but has been narrowing down these past few months which was helped by a currency float that cut the pound’s currency value in half which made the country’s goods cheaper abroad and buying much more expensive.
This year, Egypt’s trade balance had been reduced by 37% with imports dropping 23% to almost $30 billion and exports rising by 11.5% to $15 billion. The country has been trying to market itself as a manufacturing hub for foreign investors with easy access to markets in Europe, cheap labor, as well as economic reforms tied to a $12 billion International Monetary Fund lending program. The country hopes that this will boost confidence in investors since many fled after the 2011 uprising.
In June, foreign direct investment for the fiscal year ended with $7.9 billion. Egypt is looking into a new investment law that will offer some incentives that is expected to be active in a couple of weeks that will help top $10 billion this year.
China is expected to be the fastest growing investor in the next couple of years with Egypt grabbing major investments from their global development project called Belt and Road initiative which is aimed to expand links between Asia, Europe, and Africa.