Egypt ranked the first recipient of foreign direct investment (FDI) flows in Africa, recording nearly USD 7.4 bn in 2017, Invest-Gate reports.

Although there is an 8.8% decline in FDI flows compared to 2016, Egypt managed to remain the number one FDI destination in Africa and the largest recipient in its sub-region (North Africa) for the second year in a row, the UN Conference on Trade and Development (UNCTAD) says in its World Investment Report 2018 published on Wednesday, June 6.

“Inflows were supported by a large increase in Chinese investment across light manufacturing industries and wide-ranging economic reforms beginning to pay off: financial liberalization, for instance, fostered more reinvestment of domestic earnings,” the report reads. 

In this regard, the report mentions investment liberalization measures in Egypt such as the introduction of a new law for setting up the natural gas regulatory authority charged with licensing and devising a plan to open the gas market to competition.

Furthermore, the UN report remarks that Egypt promulgated the Industrial Permits Act and its executive regulations, in an attempt to facilitate procedures for obtaining licenses for industrial establishments.

“The country also put into effect a new investment law, aiming to promote domestic and foreign investment by offering further incentives, reducing bureaucracy, and simplifying administrative processes,” UNCTAD adds.

The report points out that Egypt also issued a decree in 2017 to establish the “Golden Triangle Economic Zone”; as part of its ongoing efforts for investment facilitation and promotion.