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Why Egypt?

Egypt is, with an annual GDP growth of 6.61 % (2022), a major emerging market economy and a key member of Goldman Sachs' Next Eleven economies (N-11). Egypt recently joined the New Development Bank (NDB), created by BRICS member states. Due to the ancient Egyptian civilization and its remarkable historical attractions, like the Great Pyramids and the Nile, the tourism industry is a major contributor to the GDP of Egypt. With 106 million potential consumers and an annual population growth of 1.58 % (2022), Egypt is a huge and growing market for consumer goods and an attractive market for any business.

The Egyptian Government is also committed to achieve the Sustainable Development Goals (SDGs). These are reflected in the framework of Egypt’s national strategy “Sustainable Development Strategy (SDS): Egypt Vision 2030’’. The focus are three dimensions: The Social Dimension (Health, Education and Culture), The Environmental Dimension (Environment Urban Development) and The Economic Dimension (Energy, Knowledge and Economic development). There is a potential for green transition overall.

Egypt is among the largest energy producers and suppliers in Africa. During COP27, hosted by Egypt in Sharm el-Sheik, important initiatives, as the NWFE-program (Nexus of Water, Food and Energy), was signed in order to advance the green transition within the country. The local government and industry is aware of the climate related challenges the country is facing, and their initiatives during the COP showed their willingness to secure a more sustainable future for Egypt.

In December 2022, the IMF Executive Board approved a 46-month agreement under the Extended Fund Facility (EFF) for Egypt in an amount of US$3 billion. The program presents a comprehensive policy package to preserve macroeconomic stability and a wide-range of structural reforms to reduce the state footprint and ease inclusive and private-sector-led growth.

Egypt is centrally located and well connected to the European, Middle Eastern, Asian and African markets. 12 % 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 the constantly increasing population combined with strong commitment from government. For example, Egypt aims to adopt inclusive healthcare coverage, improve the quality of healthcare and develop the pharmaceutical sector through Egypt Vision 2030. This presents 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 42% of the total electricity generated by 2035. In addition, energy efficiency and green transition is more and more in focus.

Some of Egypt’s mega projects includes the world largest solar park, Benban Solar Park, located in Upper Egypt and the Zafarana Wind Farm, which is the first large-scale wind farm in one of the windiest sites, in this part of the world.

Denmark has been through a similar transition and is keen to share know-how with Egypt through the Energy Section at the Embassy. Egypt is the fifth largest oil producer in Africa and the third largest natural gas producer on the continent. In addition, 9% of the world’s LNG trade passes through the Suez Canal.

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 order to satisfy the national need. Noticeable progress has already been made by increasing access to drinking water from 90% (2015) to 97% (2019) and expanding the access to sanitation from 50% (2015) to 70% (2019). However, there is still an urge to ensure water security. This creates great opportunities for companies and investors working in this field.

Food and agriculture
With a young population, representing one third of the country, Egypt is the largest and potentially most dynamic and fast-moving consumer goods market in the Middle East. The revenue of the Egyptian food market amounts to US$ 183bn in 2023. The market is expected to grow annually by 7.32% (CAGR 2023-2027). The Egyptians continue to show rising demands for Food & Beverages, and with a growing population of 2.5% per year who spend over 30% of their income on food, the Egyptian market offers fruitful opportunities for potential investors.

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.