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Why Egypt?

Egypt is, with an annual GDP growth of 5-7%, a major emerging market economy and a key member of Goldman Sachs' Next Eleven economies (N-11). Due to the remarkable history, the Great Pyramids and the Nile, the tourism industry is a major contributor to the GDP of Egypt. With 100 million potential consumers and an annual population growth of 2.5%, Egypt is a huge and growing market for consumer goods and an attractive market for any business.

The Egyptian Government is also committed to achieving the Sustainable Development Goals (SDGs). These are reflected in the framework of Egypt’s national strategy “Sustainable Development Strategy: Egypt Vision 2030 (SDS). The focus are three dimensions: The Social (health, education and culture), The Environmental (environment urban development) and The Economic dimension (energy, knowledge and economic development). There is a potential for green transition overall.

It is also worth mentioning that there has been ambitious economic reforms in 2016-19 and high grades from IMF for diligent implementation of IMF-recommendation including lifting subsidies on fossil fuels.

Egypt is centrally located and well connected to the European, Middle Eastern, Asian and African markets. 8% of the world trade passes through the Suez Canal.

Below are highlights from four very promising sectors:

Health
The health sector in Egypt is interesting with a growing market, primarily due to the demand from constantly increasing population combined with strong commitment from government. For example, Egypt recently approved a new universal health coverage that will expand healthcare to the entire population from the current coverage level of 58% presenting great opportunities for Danish companies, especially in non-communicable diseases including diabetes and obesity, digitalization, blood safety and family planning.

Energy
With a plan to become a regional energy hub, Egypt is building  wind farms,  solar power plants and increasing its hydroelectric capacity, aiming to increase the share of renewable energy to 22% of energy consumption by 2020 and 43% by 2035. In addition, energy efficiency is more and more in focus.

Denmark has been through a similar transition and is keen to share know how with Egypt through the placement of an energy growth advisor at the Embassy starting from October 2019. It is also worth mentioning that Egypt is the largest oil producer in Africa outside of the Organization of the Petroleum Exporting Countries (OPEC) and the third largest natural gas producer on the continent. 9% of the world’s LNG trade passes through the Suez Canal with the potential of increasing to 20% within the coming 10 years.

Water and environment
The Nile River is the backbone of Egypt’s industrial and agricultural sector and the primary source for drinking water but there is a growing need to look for new ways for water resources management. In this regard, The Egyptian government’s water goals include decreasing water consumption from 107% to 80% and expanding access to network sanitation from 50% to 80% by treating sewage water, industrial water and wastewater. This creates great opportunities for companies and investors working in this field.

Food and agriculture
With a young population of almost 100 million Egypt is the largest and potentially most dynamic and fast-moving consumer goods market in the Middle East. Egypt’s organized food retail industry is one of the largest in the Middle East’s by value and health consciousness and food security is increasing. The well-developed tourism market also promotes consumption of value-added foodstuffs and beverages.

Within its Vision 2030, Egypt aims to increase the volume and productivity of both the land and water units, raising the degree of food security of strategic commodities, increasing the competitiveness of agricultural products in local and international markets and improving the climate for agricultural and aqua-cultural  investments.  All of these factors boost the need for Danish high valued products.