IFC Cautiously Confident On Egypt Economy
International Finance Corp. CEO Jin-Yong Cai spoke to Sarah el-Sirgany on the challenges for Egypt in attracting investment during his recent visit to the country.
CAIRO — In 2011, the International Finance Corp. invested $475 million in Egypt’s Orascom Construction Industries as part of its proclaimed strategy to create jobs and boost foreign investment in critical sectors.
The company is now embroiled in a tax dispute with the Egyptian government over a 2007 transaction. OCI, which is considering selling shares to its Dutch-listed parent company OCI NV and potentially delisting from the Egyptian stock exchange, says it was compliant with the law at the time and that it owed 4.7 billion Egyptian pounds ($700 million) in taxes for selling a subsidiary to Lafarge, not the 14 billion ($2.1 billion) currently in dispute.
In his first visit to the region, new International Finance Corp. (IFC) CEO Jin-Yong Cai said he didn’t raise the issue directly with the prime minister and the cabinet ministers he met on March 13. He said he wants both sides to reach a mutual agreement “based on the regulations.”
This resolution, he said, “should be a very important signal, a positive signal for investors to come in to Egypt.” The “reviews on the historical issues” should be done transparently to boost the confidence of international and local investors, he added.
