On September 5, 2024, the British Egyptian Business Association (BEBA) hosted a breakfast briefing at its premises in honour of John Humphrey, HM Trade Commissioner (HMTC) for Africa. The event featured professionals from various fields and focused on the topic of ‘Egypt’s Drive to Be a Gateway to Africa.’  The primary focus of the discussion was on the opportunities and challenges associated with business and investment in Egypt, particularly in light of the UK’s new government’s emphasis on sustainable growth, clean energy, and climate action.

Egypt, with its strategic location, growing population, and renewable energy potential, was presented as a promising market in Africa. The event explored the potential benefits and challenges for businesses and investors from both countries. UK representatives expressed keen interest in understanding the specific opportunities and challenges, Free Trade Agreements (FTAs), and legal and regulatory frameworks that could facilitate investment and operations in Egypt.

The Egyptian side highlighted the current state of Egypt’s economy, including the country’s export potential, the opportunities for medium-sized businesses (MEs), the ongoing efforts to streamline logistics and regulations, and the recent devaluation of the Egyptian pound, which has stabilized energy prices relative to global levels. The competitive workforce in Egypt was also discussed, with UK representatives expressing concerns about wage pressure. While wage increases are evident, they remain lower than in many other countries.

The topic of capital controls was also addressed. It was clarified that individuals who earn their income in foreign currency are not subject to strict capital controls. For those who primarily earn in Egyptian pounds, a priority queue system is in place that prioritizes essential imports like pharmaceuticals and raw materials. Investments in local assembly or manufacturing are also favoured.

The discussion also touched on the importance of developing sectors like education, healthcare, and transportation, which currently lack sufficient investment. Private-to-private partnerships were encouraged, and Egypt’s potential as an offshore destination was highlighted. However, challenges remain in attracting talent to emerging fields like AI due to cultural preferences for traditional professions like medicine, engineering, and business.

The event also discussed the importance of promoting two-way trade between Egypt and the UK. It was emphasized that while Egypt has been actively exporting to various countries, there is a need for greater efforts to encourage imports from Egypt and foster a more balanced trade relationship.

The limited presence of Bed and Breakfasts (B&Bs) in Egypt was identified as an area for improvement, along with addressing safety concerns. It was acknowledged that while B&Bs are not as prevalent in Egypt as in some other countries, there is potential to expand their use and change perceptions about the safety and business environment.

Taxation was another topic covered. While businesses may face challenges in understanding their tax obligations, the ongoing digitalization of tax processes is seen as a positive development. The potential for renewable energy, particularly solar and wind power, was emphasized given Egypt’s abundant resources and the need to reduce reliance on imported gas. However, challenges include integrating renewable energy into the existing power grid, securing funding, addressing payment terms, and acquiring suitable land.

In conclusion, the event underscored the need for both Egypt and the UK to effectively communicate and tell compelling stories about their collaboration and investment opportunities. By highlighting the mutual benefits and potential for sustainable growth, it was hoped that the event would contribute to attracting greater investment and strengthening the bilateral relationship between the two countries.