Egypt seeks stronger ties with BRICS for trade advantages: Minister

By Al Mayadeen English
Source: Agencies
7 Jun 2024 19:07

Egyptian Minister of Economic Development Hala Elsaid told Sputnik that Egypt has allocated a substantial portion of public investment towards enhancing infrastructure.

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A man balances a tray of traditional "Baladi" flatbread outside a bakery, in the Old Cairo district of Cairo, Egypt, Friday, Dec. 8, 2023 (AP)

Egypt aims to enhance collaboration with BRICS nations, and its inclusion in the bloc will facilitate streamlined trade with other African countries, stated Hala Elsaid, the Egyptian Minister of Economic Development, in remarks to Sputnik.

"When we talk about a state like Egypt, with its distinctive geographical location, the volume of free trade agreements that exist in Egypt, as well as the amount of investments that Egypt has made in the network of ports and roads, this all makes Egypt a very important partner for the BRICS alliance, since it will become a passage and gateway to African countries and will facilitate trade with a number of countries," Elsaid said.

The minister further noted that Egypt has allocated a substantial portion of public investment towards enhancing infrastructure.

"We look forward to greater interaction with the BRICS countries to facilitate investment and stimulate foreign trade," Elsaid said.

Egypt's economy has recently been subject to heavy shocks as a result of structural reforms prescribed by the IMF and World Bank.

Measures of austerity have always negatively impacted public welfare, but Cairo's integration into BRICS has offered Egypt alternative avenues for economic cooperation and development.

Among the notable benefits has been an increase in trade and investment flows between Egypt and BRICS economies, including China.

On May 29, Egypt and China finalized a range of cooperation agreements, including a collaborative development blueprint for the Chinese Belt and Road Initiative (BRI).

Over 1,500 Chinese companies operate in Egypt across diverse sectors, such as IT, electricity, telecommunications, and transportation.

China and Egypt have forged a comprehensive partnership, with a cooperation portfolio worth around $1.7 billion.

This funding is directed towards various development areas, including electricity, healthcare, education, vocational training, and more.

Trade volume with BRICS hits $25B

During her participation in the St. Petersburg International Economic Forum 2024, Elsaid discussed Egypt's burgeoning trade relations with BRICS nations, totaling approximately $25 billion across various sectors.

Egypt's geographic position and its ambition to become a leading hub for trade, logistics, and smart logistics services, has led to infrastructure investments exceeding LE 10 trillion, the minister said, as reported by Egypt Today.

The country further aims to promote collaboration between its companies and BRICS nations in manufacturing, joint projects, and technology transfer.

El-Said also pointed out Egypt's impressive export diversification score of 95 percent and the rise in its exports to GDP ratio from 6.7 percent in 2015 to 10.7 percent in 2022, with services exports reaching 5.7 percent of GDP in 2022.

Elsaid said that the overall trade volume with the global market has surpassed $100 billion.

Looking ahead, the FY 2024/2025 plan targets a real economic growth rate of 4.2 percent, aiming to drive Egypt's GDP to LE 17.3 trillion.

Moreover, the plan aims to increase the percentage of private investments to 48 percent, particularly through anticipated investments in the Ras El Hekma project.