$891m .. BRICS group's investments in Egypt increased.. "Details"

Hossam Haiba, CEO of the General Authority for Investment and Free Zones, revealed that the government had received requests from Chinese investors to pump investments into the local market in yuan to escape the dollar crisis.

The Egyptian Observatory affiliated with the Egyptian Center for Thought and Studies shed light on Egypt's gains from joining the "BRICS" and clarified in particular that Egypt's accession to the group opens the door wide for Cairo to take advantage of the various opportunities that have a positive return on the Egyptian economy.

"BRICS" 2023 summit

Researcher Asmaa Fahmy mentioned that the "BRICS" 2023 summit, which was held during the past three days in its fifteenth session in Johannesburg, South Africa, announced the expansion of the membership base to include: Egypt, the Emirates, Saudi Arabia, Argentina, Iran and Ethiopia, so that this represents a success for the founding members of the bloc: Brazil, Russia, India, China and South Africa, in a way that enhances economic cooperation and influence on the global economy.

According to the Observatory, expectations indicate more intra-investments and the placement of countries such as India, for example, on the Egyptian investment map. In general, the BRICS countries’ investments in Egypt amounted to $891.2 million during the fiscal year 2021/2022. 

An increase from the previous year, which amounted to $610.9 million, bringing the group’s investments in Egypt up by about 45.90%. China ranked first in the group in terms of the volume of investments in Egypt with $369.4 million. Followed by India with 266.1 million dollars, and South Africa with 220.3 million dollars.

She explained that the member states of the group are playing an increasing role in influencing the global economy, and thus forming a new multipolar economic strategy that is tantamount to helping the Egyptian economy.

Thus, Egypt's accession to the assembly is tantamount to diversifying the options before Cairo and mitigating its exposure to any form of economic pressure.

Foreign investment

A number of investors and manufacturers considered Egypt's accession to the BRICS grouping as an exit from the bottleneck, and the fastest solution to the economic crisis that Egypt has been suffering from in the recent period, such as providing the dollar to import production requirements and components for the industry and the local market, and contributes to attracting foreign investment and increasing trade exchange with entities. other economic activities, and opening larger markets for the Egyptian product.

Foreign Direct Investment

On related context, Finance Minister Mohamed Maait said on Saturday 26 August 2023 that BRICS' invitation to Egypt to join the bloc will help promote investment and export opportunities and Foreign Direct Investment (FDI) flows.

He explained in his statement which issued on Friday 25-08-2023, the minister said that this additional positive step, which reflects the political and economic weight of Egypt, helps support means of economic cooperation and deepening trade exchange between Egypt and the member states of BRICS, which is one of the most important economic blocs in the world.

Basic needs 

 Maait said, the diversity of the productive and commodity structure of exports achieves the integration of supply chains and imports among the BRICS countries.

The minister added, the dealing in national currencies between BRICS member states helps Egypt rationalize the basket of currencies spent to pay the import bill and thus relieve pressure on the State’s budget, which bears heavy burdens to secure the basic needs of wheat and fuel in the wake of the outbreak of war in Europe and the global inflation, all these caused an unprecedented hike in the prices of goods and services.