Date post: | 05-May-2018 |
Category: |
Documents |
Upload: | truongcong |
View: | 218 times |
Download: | 2 times |
1
Public Policy on Modern Governance And Public Policy on Modern Governance And Transparency To Improve Investment Transparency To Improve Investment
Environment In EgyptEnvironment In Egypt
Presented By
Eng. Ahmed El-SayedGAFI ; Consultant & Head of promotion Affairs
OECD Global Forum On International Investment
17-19 Nov. 2003
2
Public Policy on Modern Governance & Transparency For Investment
FDI Inflows (World / MENA Countries/Egypt)
Egypt Overview ( Role of government in achieving transparency )
a) Demographic Data.
b) Political & Economic Indicators.
c) Trade & Markets.
d) General Authority for Investment and Free Zones
One stop Shop.
Disputes Settlements.
Laws Amendments .
e) Development of promotion role to be proactive for Targeting
quality FDI.
Cooperation with International organizations (MIGA/FIAS/UNCTAD/ OECD).
4
FDI Inflow In The World 2002
In Billion US $
Source : World Investment Report United Nation 2003
254
482
686
1079
824
652
0
200
400
600
800
1000
1200
1400
1991
-199
6
1997
1998
1999
2000
2001
2002
1392
41%
21%
5
FDI Inflow at MENA CountriesIn 2002
1065
428
681 82
1
218
37 56
7
257
41
326
225
95
0
500
1000
1500
2000
2500
3000
Alg
eria
Egy
pt
Mor
occo
Sud
an
Tuni
sia
Bah
rain
Iran
Jord
an
Kuw
ait
Leba
non
Pal
esti
nian
Qat
ar
Syr
ian
Em
irat
es
In Million US $
Source : World Investment Report United Nation 2003
700
Petroleum 2000
2700
6
FDI Inflow at MENA Countriesfrom 1991 to 2002
-500
0
500
1000
1500
2000
2500
3000
1991-1996 1997 1998 1999 2000 2001 2002
Algeria Egypt Libyan Morocco Sudan Tunisia
In Million US $
Source : World Investment Report United Nation 2003
7
FDI Inflow at MENA Countriesfrom 1991 to 2002
-200
0
200
400
600
800
1000
1991-1996 1997 1998 1999 2000 2001 2002
Bahrain Iran Jordan Kuwait Lebanon
In Million US $
Source : World Investment Report United Nation 2003
8
FDI Inflow at MENA Countriesfrom 1991 to 2002
-1200
-1000
-800
-600
-400
-200
0
200
400
600
1991-1996 1997 1998 1999 2000 2001 2002
Palestinian Qatar Syrian Emirates Yemen
In Million US $
Source : World Investment Report United Nation 2003
9
Factors Affecting FDI InflowFactors Affecting FDI InflowPolitical & Economic Stability
Market access .
Cost of doing business .
Utilities ( water , Electricity , Gas , Telecommunication , ………..).
Other Resources.
Availability of world class infrastructure.
Availability of well trained , productive & low cost work force.
Transparency.
Availability of information.
Sustainable investment laws .
Investor awareness and participation in regulatory changes.
Regular meeting between investors and policy markers.
Investor facilitation startup “ from red tape to red carpet “ and reducing of administrative burdens .
11
A unique strategic location at the crossroads between
Africa, Europe &Asia.
Total area is one Million km2.
Major transshipment destination:
Suez Canal .
Red Sea and Mediterranean ports.
International airports.
Availability of low cost utilities (water / electricity / gas)
and raw material.
Geographical Location
12
Population 71.2 millions.
Population growth rate 2.1% ( 2001/ 2002).
Sustainable growth rates , 3.2% of GDP on Sustainable growth rates , 3.2% of GDP on
averageaverage..
EgyptEgypt’’s inflation has consistently declined to s inflation has consistently declined to
reach 2.4 %.reach 2.4 %.
Total foreign debt is $ 28.7 billion.Total foreign debt is $ 28.7 billion.
Demographic Data
13
9.4
7.3
6.2
3.8 3.8
2.82.4 2.4
0
1
2
3
4
5
6
7
8
9
10
1995 1996 1997 1998 1999 2000 2001 2002
Inflation Rate in Egypt (%)
1995 - 2002
Political & Economic IndicatorsPolitical & Economic Indicators
1.92.5
3.94.7 4.9
5.35.7
6.3
3.63.2
0
1
2
3
4
5
6
7
8
9
10
%
1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 2000/01 2001/02
Real GDP Growth Rate %
Source : Ministry of foreign Trade
14
Political & Economic IndicatorsPolitical & Economic Indicators
Since January 29,2003 Egypt adopted Since January 29,2003 Egypt adopted
a a ““Free Float FX SystemFree Float FX System””..
Rates are to be determined by banks Rates are to be determined by banks
(55 banks).(55 banks).
Foreign Exchange SystemForeign Exchange System
Source : Central Bank Of Egypt
15
Private Sector Leadership for generating
Growth (74%).
192 companies have been privatized out
of (314) companies with total value of L.E
16.9 billion equivalent to (4.4 %) of GDP.
Political & Economic Political & Economic IndicatorsIndicators
Privatization
16
Political & Economic IndicatorsPolitical & Economic Indicators
664
1215
2791
3396
2361
2785
2476
1126
920
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
1994/95 1995/96 1996/97 1997/98 1998/99 1999/01 2000/01 2001/02 2002
Privatization Proceeds (L.E. Millions)1994- End June, 2002
17
EgyptEgypt’’s Advantages versus s Advantages versus other Economies in the Regionother Economies in the Region
222234Labor
222222Finance
333333Government Role
222322Trade Openness
441144Raw Material Availability
422134Utility Prices
321133Local Market
SaudiTunisiaJordanIsraelTurkeyEgypt
4 Highly Competitive 0 Limited Potential
Competitive Edge
The Outcome of the Competitive Benchmarking Indicates that Egypt Presents a
number of Advantages Versus other Economies in the Region
Source:The Global Competitiveness Report 2000
18
Government Economic Policy Government Economic Policy Independence RatingIndependence Rating
2.1
2.7
2.7
3
3.1
3.1
3.2
3.3
3.4
3.8
4.3
4.4
5.5
0 1 2 3 4 5 6
R u ssia
Isra e l
In d o n e sia
P h ilip p in e
In d ia
T u rke y
G re e c e
Ita ly
T h a ila n d
M a la ysia
E g yp t
Jo rd a n
S in g a p o re
Source: The Global Competitiveness ReportAverage Score ,From 0 to 6 Highest rank
90.4%
84.6%
57.6%
14.0%
9.0%
8.1%
6.6%
5.3%
4.7%
4.4%
2.4%
2.1%
0% 20% 40% 60% 80% 100%
R u ssia
T u rke y
In d o n e sia
In d ia
P h ilip p in e s
T h a ila n d
Isa re l
M a la ysia
G re e c e
Jo rd a n
E g yp t
Ita ly
S in g a p o re
Inflation PercentagesInflation Percentages
The Egyptian Government’s Economic Policies Are Well Perceived And Executed, As Evidenced By The Relatively Low Inflation Among Selected Economies
19
Work force is 20 Million.
Number of universities is 18.
Ranking 17th worldwide in number of yearly graduates
270,000 high school graduates year 2002 .
248,451 colleague graduates year 2001.
Man PowerA country of 71.2 million people
20
Skilled Manpower at Competitive Cost
Skilled productive & low cost reliable workforce.Skilled productive & low cost reliable workforce.
Labor Cost in Europe is almost 15 times higher as compared to EgLabor Cost in Europe is almost 15 times higher as compared to Egypt.ypt.
Average labor cost in Egypt is US $ 65 Average labor cost in Egypt is US $ 65 –– 215 / month.215 / month.
1
14.3817.69
13.55
0
5
10
15
20
Egypt Italy Germany France
Labour Cost Comparison
No.
Of
Tim
es T
o Eg
ypt
Source: IFC (2000)
21
Trade AgreementsTrade Agreements
Egypt
World Trade Organization (WTO) Europe – Mediterranean
Partnership
Other Agreements
Greater Arab Free Trade Area (GAFTA)
Common Market forEastern and southern
Africa (COMESA)
Inhabitants 380 Million
Inhabitants 300 MillionInhabitants 728 Million
Trade & MarketsTrade & Markets
Local market 71.2 million consumer & Regional market 1.4 billionLocal market 71.2 million consumer & Regional market 1.4 billion consumer .consumer .
22
General Authority for Investment and Free
Zones (GAFI) Sole governmental agency
responsible for investment affairs.
Private sector oriented organization.
Headed by board of directors formed by
members from governmental agencies and
private sector equally.
Reports directly to the Prime Minister.
Who we are ?Who we are ?
23
GAFI’s Role
Encompasses delegates from different governmental agencies
dealing with investors.
Comprises Following Divisions.
A) The Advisory UnitFocuses on investor facilitation, business support service.
Respond to investor’s inquiries.
Optimize and streamline incorporation procedures.
Investment Facilitation Services offered to investor before, during &
after incorporation, such as :Providing needed data and information to investors.
Providing Utilities & Land prices.
Assist investors to select proper Locations for their projects.
Supply investors with Investment opportunities.
One Stop Shop
24
B) The Current awareness unit:
Receiving documents related to the legal incorporations of
companies.
Act on behalf of investors to obtain company license .
Electronic registration of companies.
Registration approvals & licensing of companies.
Issue & Renew of Work Permits for foreigners.
Airport entry permits for company representatives.
GAFI’s Role
One Stop Shop
25
A permanent ministerial committee for investment affairs has been
formed, presided by the deputy Prime Minister, competent
ministries and GAFI Chairman, so as to solve investment disputes
amicably outside court channels.
A minor permanent committee is also formed with Ministry of
finance to study and take action to solve Taxes & Custom problems
; ministerial committee will take the lead for unsolved cases.
Out of (274) case discuss during (15 ministerial meetings), (217)
have been solves and (14 ) decree became as general rule.
C) Disputes Settlements
GAFI’s RoleOne Stop Shop
26
Setting laws and decrees , so as to improve investment environment
Outcome from investment disputes solved by Ministerial committee is used to amend laws.
Discussions of regulatory changes with investors in done before issuance of laws
New laws have been issued during 2002-2003 as follows :-
Intellectual property law
Mortgage Law
Banking Law
Labor law
Amendments of Laws
GAFI advice the government for investment regulatory changes in order to :
Antimony laundry Law
Export Development Law
Special Economic zones
law
27
Other New Laws will be issued soon, which are
Custom Law
Tax Law
Addition of New chapter in investment law
to acquire GAFI’s decisions the power of the
law and to be final and binding for all
governmental agencies
Amendments of Laws
28
GAFI’s role in proactive Investment Targeting
Prioritizing potential sectors for development.
Defining Egypt’s sector competitive location
Analyses potential markets, trade flow and FDI
flow affecting such sectors.
Performing assessment studies; SWOT analysis,
Bench Marking, competitiveness for sectors and
regions targeted for development, in order to issue
vision strategies& policies
29
GAFI’s role in proactive Investment Targeting
Compile the output of such studies in a proactive
promotion plan.
Formation of Joints desk with foreign Embassies
at Egypt to solve any problems facing foreign
investors, As well as, coordinating for business
affairs, Visits, Forums, according to agreed up
annual plans
31
Development and implementation :
Investment Promotion Strategy
promotional materials
Information & CRM systems program
Sector Targeting Program
Market Intelligence Program
National & International Public Relations and Communications
Campaign
Cooperation with international organization MIGA, FIAS, UNCTAD &
OECD
MIGA Program
32
International Country Branding Campaign
Policy Advocacy Program
Investor Facilitation & Servicing Program
Investor Aftercare Program
General Monitoring and Evaluation Program
Human Resources and Staffing Program
Monitoring and Project Supervision Program
Cooperation with international organization MIGA, FIAS, UNCTAD &
OECD
MIGA Program
33
FIAS ProgramInvestment & Business environment improvement program
Diagnostic review of the Direct Investment & Business Environment
in Egypt
Administrative Barriers to Investment
Assistance Program for the Implementation of the finding of the
Administrative Barriers to Investment
Competition Policy Environment for FDI
Promoting the Development of Companies in selected sectors
through FDI spillovers
Cooperation with international organization MIGA, FIAS, UNCTAD &
OECD
34
Cooperation with international organization MIGA, FIAS, UNCTAD &
OECD
UNCTAD Review of the Investment Environment
Both studies were to be published internationally
OECD Review of the Investment Environment
35
General Authority For General Authority For Investment and Free ZonesInvestment and Free Zones
30, 30, SheriefSherief St. Down Town, CairoSt. Down Town, Cairo
Tel: 3938759 Tel: 3938759 –– Fax :3933799Fax :3933799
Email : Email : [email protected]@maktoob.com
Web Site : Web Site : www.gafinetwww.gafinet.org.org