Egypt has recently adopted a bold and ambitious reform plan to ensure fiscal sustainability and solve macroeconomic imbalances with the objective of reducing economic risk and bolstering confidence among investors.
The reform plan aims at increasing tax base, streamlining spending on fuel and electricity subsidies, leveraging capital spending and allocating more resources to public services and social security.
After 25th revolution Government has embraced an intensive 3 dimensional promotion strategy based on business reform, FDI attraction, and investor care, As follows:
For efficiency and simplification:
· Reduction of the time required for registering foreign representation offices to 72 hours instead of 40 days has been made.
· Paying subscription fees to the Chamber of Industry and the Federation of Egyptian Industries is available at the one stop shop.
· The launch of the second phase of electronic companies establishment on GAFI official web site.
· And, Increasing GAFI's processing centers in governorates.
For the licenses
· Lifting the required preliminary industrial license when establishing at GAFI.
· Lifting the security approval requirement for media companies.
· Issuance of the imports/exports certificates for specific activities for one to five years.
For SMEs: the Establishment of "Bedaya Center" to help develop and assist SMEs in gaining access to bank financing.
For the reduction of the industrial business cost through the decision of the ministry of industry to reduce the value of Letters of Guarantee required to acquire land from industrial zones.
Finally and most importantly for investor care:
· Establishment of the "Contracts Committee" which GAFI is a member of, to resolve any conflict that might arise between the investors and different governmental bodies over previously signed business contracts.
· And, Modification of the Investment law No. (8) year 1997 to allow the reconciliation between the investor and the government in the cases of proven fraud.
· There are five investor protection schemes which GAFI is currently endorsing:
| Prior the 25th of Jan. Revolution |
1. Investor Care Department: established within GAFI to support and guide investors to resolve any conflicts they might face with the different governmental authorities.
2. Disputes Settlement Center: established in 2009 for the reconciliation and disputes resolution between business partners.
3. The Investment Disputes Resolutions Committee: which GAFI hosts its the technical secretariat.
| Post the 25th of Jan. Revolution |
1. The "Contracts Committee" which GAFI is a member of, to resolve any conflict that might arise between the investors and different governmental bodies over previously signed business contracts.
2. Modification of the Investment law No. (8) year 1997 to allow the reconciliation between the investor and the government in the cases of proven fraud.