Egypt’s private sector needs more room for investment to play its role: World Bank

Egypt’s private sector needs more room for investment to play its role: World Bank

Although Egypt's economic reform programme has improved the country's macroeconomic performance and restored confidence in its economy, the reforms have not triggered a marked and sustained increase in Egypt's private sector investments, according to the World Bank.

A report on creating markets in Egypt, issued on Monday, showed that while the share of private investments in Egypt's economy has started to grow, these investments remain below its historical average “” 54 percent “” and considerably lower than in peer countries.

The report also said that Egypt's economy is at a turning point amid the COVID-19 shock.

Moreover, the depreciation of the Egyptian pound after flotation, implemented in November 2016, improved the trade deficit, but export competitiveness remains weak and export proceeds are well below those of other countries, according to the report.

The number of exporting firms is critically low, with only 9 percent of manufacturing firms exporting directly, according to the report.

The report also noted that Egypt's participation in global value chains is low as well compared to its peers, as exports are mainly centred around primary commodities and less sophisticated products.

"Moving upstream to higher value-added complex manufacturing activities in Egypt is hindered by the