Can Sisi's new investment council save Egypt's economy?
While some have praised Cairo's decision to form a Supreme Council for Investment to be overseen by the president himself, others say that Abdel Fattah al-Sisi's personal involvement only demonstrates institutional incompetence.
While recent talk of a $12 billion loan from the International Monetary Fund has boosted spirits in Egypt’s economic circles and increased prospects for more investment, attracting foreign capital will require concerted efforts and reform. In this regard, last month Egyptian President Abdel Fattah al-Sisi issued a decree to establish a Supreme Council for Investment. According to the July 3 decree, the council will specialize in supervising the state’s investment policies in all sectors and provinces and will be under the direct supervision of his presidency.
Investment Minister Dalia Khorshid said that once the council is established, it will meet at least once every two months and sessions will be headed by Sisi himself. Khorshid also noted that the council will assure all Egyptians and foreign investors that the investment system will witness a qualitative leap in the upcoming stage.
She explained that the new council will have its specific terms of reference that would not interfere with the prerogatives of other authorities, noting that various authorities will operate in harmony in terms of performance, work and coordination.
A July 25 report on a study by the World Bank, conducted in collaboration with the European Investment Bank and the European Bank for Reconstruction, showed that 50% of companies surveyed in Egypt believe that the political instability is the main obstacle they face, in addition to electricity and funding problems. The report covered 6,000 companies in the Middle East and North Africa, including 1,500 Egyptian companies.
