IMF’s Georgieva visits Egypt next week

Updated 10/31/2024 8:27:00 AM

Arab Finance: Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva will visit Egypt next week, Prime Minister Mostafa Madbouly confirmed in a press conference.

This visit will be followed closely by the arrival of the IMF review team to assess Egypt’s economic program.

The weekly press conference, attended by officials including Minister of Tourism and Antiquities Sherif Fathy and Minister of Finance Ahmed Kouchouk, outlined ongoing government initiatives aimed at economic stabilization and improving the investment climate.

Madbouly highlighted the importance of Georgieva’s visit, set against a backdrop of regional instability, including rising tensions between Israel and Iran. "Our main concern is to avoid any escalation that could lead to a regional conflict, with potentially significant consequences," he said.

He detailed Egypt’s diplomatic efforts to address the crisis in Gaza and Lebanon, expressing concerns over the regional that could arise a broader conflict.

He emphasized Egypt’s diplomatic stance, led by President Abdel Fattah El-Sisi, who has advocated for a reassessment of Egypt’s IMF program to consider these evolving challenges.

On the IMF negotiations, Madbouly clarified that discussions focus on existing program commitments without new borrowing or financial burdens for Egyptian citizens.

"We are simply exploring adjustments to timelines and targets in light of the surrounding circumstances," he explained.

Constructive talks had already taken place between Egypt’s economic delegation and IMF officials during recent annual meetings in Washington.

On domestic reforms, Madbouly announced that the cabinet approved three draft laws aimed at facilitating investment, tax reform, and easing regulatory constraints.

The first law, amending the Unified Tax Procedures Law, simplifies tax regulations for private citizens and investors.

“Our goal is to streamline tax settlements without placing additional burdens on citizens or investors,” he stated.

The second reform introduces tax incentives for small businesses with annual turnover under EGP 15 million, granting significant exemptions.

Additionally, a law to expedite the settlement of tax disputes was approved, addressing a long-standing demand from investors.

Madbouly also noted that revisions to the real estate tax law, aimed at facilitating business operations, would be presented soon.

The upcoming amendment to the customs law will further align with investor requirements to enhance Egypt’s attractiveness for foreign investments.

As part of Egypt’s strategic shift toward clean energy and industry, Madbouly mentioned a new agreement with China’s BAIC to establish an electric vehicle factory in Egypt.

Production is set to begin in 2025, meeting local demand and contributing to Egypt’s export ambitions.

Reassuring the public on essential supplies, Madbouly confirmed a stable stock of essential goods, including a strategic reserve of medicines.

"We are committed to ensuring the availability of all essential goods, including medicines," he said, adding that a new tracking system, in collaboration with the Egyptian Drug Authority (EDA), will enhance monitoring and prevent monopolistic practices in pharmaceuticals.