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Changing Egypt's economic perspective

Changing Egypt's economic perspective

Focus Africa

Egypt’s government has affirmed its willingness to position the Arab nation as one of the leading economic hubs in the horn of Africa. The country has gradually implemented various project initiatives like ports to speed up both imports and exports. This has resulted to a positive business climate for several investors in the country.

Egypt had in the recent year express its willingness to attract foreign investors. To that end, it established the Suez Canal Economic Zone that spans on an area of 460 square kilometers, and includes six ports and four industrial zones. DP World Sokhna is one of the leading ports along the Red Sea.

The DP World Sokhna port

A mere 120 kilometers from Cairo, DP World Sokhna port is easily reached by a modern six lane highway making it perfectly placed to reach the capital’s 18 million consumers. Millions of people are banking their hopes on the worth of experience by DP World to lay hands on goods and services for their everyday lives. The port also acts as a transit point for other Egyptian ports as well as into African subcontinent.

The free economic and trade enclave is a joint project by two giants. Suez Canal Authority and DP World are on a move to boost foreign investments here.

In 2016, the Egyptian government began to implement crucial reforms to stabilize the economy and restore confidence in the face of macro-economic imbalances.

Africanews team met with various stakeholders who frequently use Sokhna port for their imports and exports. Among such industries is the Savola Food which is one major sugar processing companies in Egypt. The Egyptian government has laid down structures that will support companies like Savola, which frequently uses Sokhna port, to reach both local and external markets.

“We do export white sugar to different markets. We export around 400,000 tons of sugar in the region. Being located at Sokhna along red sea gives us access to markets in the east and horn of Africa,” Sherif Abdeen, the general manager of Savola Foods revealed to Africanews.

“With the logistical capabilities of DP World, we are able to touch local and North African markets. This is a massive advantage for us. So we have both advantages on the import of raw sugar and the export of white sugar,” he added.

DP World Sokhna has two basins that handle cargo. Basin one has a capacity of 945000 TEU with 75% utilization while basin 2 has a capacity of 750000 TEU. The port also has a capacity of 4.8 million tons and in 2018, it recorded over 4 million tons.

Its massive shore and quay mobile cranes work tirelessly to ease congestion at the port.

This has in turn lead to a tremendous positive impact to various industries in Egypt.

The port has also been a major source of employment. DP World Sokhna has employed over a thousand employees who frequently undergo various trainings to improve port operations.

Egypt reaps big

Egypt’s macro-economic indicators have stabilized in the last couple of years that includes the GDP and the trade growth. Egypt is also part of COMESA which gives it enough strength to trade within the African continent.

Egypt is also turning out to be one of the hub or distribution centre for the whole of Africa. The government of Egypt recently started a connection between Sokhna and East Africa towards Mombasa and Dar Es Salaam.

Egypt’s economy has been growing at a rapid rate after the last revolution. Its gross domestic product (GDP) stands at 5.6 percent in the July to September quarter 2019. The North African state is now targeting 6 percent GDP growth in the 2019/20 fiscal year that began on July 1. Its GDP grew 5.6 percent last fiscal year.

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