Egypt needs LE276 billion (US$45 billion) in investment this year to meet its targeted growth rate, Prime Minister Hesham Qandil said on Tuesday.
During a press conference he held on the sidelines of a visit to the Egyptian Stock Exchange to open the trading session, Qandil said that the government is counting on the private sector to contribute up to LE170 billion of the required investment.
He explained that the government aims to achieve a growth rate between 4 to 5 percent this year. He said the rate could be met after implementing the development plan and attracting the needed investment.
Qandil added that the announcement that Shell International Petroleum Company would make up to $11 billion in new investments in the oil and gas sector, in addition to the announcement of other foreign companies of their intention to invest in Egypt is a good sign for the stability of the market in the country.
He stressed that the situation in Egypt has become clearer and more stable than ever before. He said the uncertain political and economic situation ended with the election of a president and the appointment of a functional cabinet.
He added that the new constitution would be followed by the election of a new People's Assembly before the end of this year, and that the new Parliament would boost investor confidence.
He also said that the basic structure of the Egyptian economy, including factories, raw materials and labor, are all present; the economy only lacks funding to complete its economic recovery.
The government seeks to provide that essential funding especially through encouraging investment and hard work, in a way to achieve the goals of the revolution, "bread, freedom and social justice."
Qandil stressed that the International Monetary Fund did not request that Egypt devalue the Egyptian pound as a condition for granting a $4.8 billion loan.
He said that Egypt would continue its program of economic reforms, whether the IMF asks for that or not, stressing that the program is purely Egyptian without interference from any foreign party.
Qandil added that borrowing is not the answer to Egypt's economic problems, but is a temporary measure to bridge the budget deficit.
Edited translation from MENA
