Net foreign direct investment in Egypt fell 36%. Companies eat lettuce



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Central Bank of Egypt data showed on Monday that net foreign direct investment fell about 36% to $ 2.8 billion in the first half of the fiscal year 2018-2019.

Net foreign direct investment reached US $ 3.8 billion in the first half of 2017-2018, according to central data, and the fiscal year begins in Egypt on July 1 and ends on June 30.
Egypt intended to increase net foreign direct investment to $ 11 billion in the current fiscal year 2018-2019, from $ 7.9 billion a year earlier.

Egypt will launch four new free zones in the coming days for the first time since 2004, in addition to the establishment of three investment zones, Mohsen Adel, president of the Egyptian General Investment Authority, said on Monday. Assign a key developer to do this.

Egyptian businessman Naguib Sawiris said today that the state should raise the investments that the private sector can implement and pointed out during the second economic conference in Cairo that "interference and increased government investment are chasing private investment."

Losses Maersk

In turn, the chief executive of the Suez Canal Container Company of the Maersk group of Denmark said on Sunday he expected his company to become a loss this year due to weak competitiveness and rising prices.

"We are losing $ 1 million a month since the beginning of 2019," Chief Executive Lars Christensen told reporters in Cairo on Sunday. "We expect a loss this year against net income of $ 5 million in 2018 and $ 10 million in 2017."

He said that because of these losses, "we laid off 400 workers and employees and did not invest new investments now in order to live with the current circumstances."

The Suez Canal Container Terminal started operations in 2004. Maersk owns 55% of its subsidiary, ABM Terminals, while Cusco PacĂ­fico owns 20%, the Suez Canal Authority 10%, the National Bank of Egypt 5%. And ABM Terminals operates the Suez Canal Container Terminal as a majority.

"We have discussed with the government the solutions that make us competitive in the Eastern Mediterranean, especially as rates are still not competitive," said Christensen.

Christensen, for example, said during a meeting with reporters that the 141,000-ton ship in East Port Said paid about $ 70,000, while in Piraeus, Greece paid only $ 31,000.

Suez Canal Container Handling is the largest container terminal in Egypt and the second in the eastern Mediterranean, representing 95% of the eastern port of the Suez Canal Container Terminal.

He said, "The shipping lines that left East Port Said will not come back again until you find a plan with the state to stabilize prices for three to five years so that companies can develop their proper economic plans."
Christensen predicted that between 2.5 million and 2.6 million containers would be moved this year, compared to 2.6 million containers in 2018. Container volumes in Egypt are between 6.2 million and 6.5 million containers per year, Christensen said.

(Reuters, the new Arab)

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