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BRI opens up new opportunities for China and Egypt

By Li Xin | chinadaily.com.cn | Updated: 2023-12-11 16:50
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China and Egypt have established favorable investment relationship under the framework of the Belt and Road Initiative, and the future cooperation embraces enormous potential, said Sahar Nasr, economist and former Egyptian minister of investment and international cooperation, in an interview at "The Belt and Road: Investing in China and Converging Thought" event.

Nasr said connectivity and trade links, as well as financial connections are crucial. All countries, including Egypt, China, and the African continent, hope for economic prosperity and growth, which cannot be achieved without connectivity. Therefore, the initiative is crucial because it strengthens connectivity through various infrastructure projects, allowing for more investment in Egypt, China, and neighboring countries, and creating job opportunities for Egypt's young, talented, and growing population. The initiative is an excellent opportunity to attract foreign direct investment from different regions.

Nasr said in the past few years, Egypt and China have developed a good partnership, focusing on cooperation in key areas that can enhance and promote mutual prosperity, such as transportation, energy, and education. In the transportation sector, the two countries have focused on constructing many infrastructure projects, facilitating the flow of both people and goods and services. Wind and solar power projects have created opportunities for mutual investment and attracting other investments. In the education sector, investing in human capital during the construction process is essential. As Rania El-Mashat, the Egyptian minister of international cooperation, said without human capital, infrastructure projects lead to nowhere. This is another important area for building investment-related development capacity and establishing a good cooperative relationship between the two countries.

Nasr emphasized that small and medium-sized enterprises (SMEs) play a significant role in both China and Egypt, as well as in most African countries and emerging economies. SMEs create employment opportunities and serve as engines for growth. Both governments and chambers of commerce attach great importance to this. Nasr considers herself fortunate to share the business opportunities in Egypt with the Egypt-China Chamber of Commerce, as SMEs have enormous potential and bring many opportunities to Egypt. Accessing funds has always been a challenge for SMEs. In this regard, Egyptian banks and China's development funds have provided great assistance. China also provides financial support for SMEs to conduct business and invest in Egypt through various forums and platforms.

Regarding investment, Nasr said Egypt offers a favorable investment environment and opportunities for investors. Egypt is eager to cooperate with Chinese investors. Its advantageous geographical location connects Asia and Africa. In addition, China and Asia can take advantage of the free trade agreement between Egypt and Africa to expand the market. Egypt is a young market, providing an opportunity to attract investment with low-cost labor, while the free trade agreement facilitates the smooth process of doing business in the region. Additionally, the region has untapped potentials and rich and diverse natural resources, such as the textile industry, renewable energy, and the digital industry. The operating rules of these industries have not been fully utilized. The Egypt-China partnership exists at the highest political level, with commitments made by leaders from both countries. The strong support from the government level instills confidence in investors from both sides. Egypt, especially the Suez Canal, is strategically located for the Belt and Road Initiative.

"We have known the famous historical Silk Road since we were young. The Belt and Road Initiative continues the significance of the Silk Road and has received support from many countries and sectors. This has been emphasized in many international forums that I have attended," said Nasr.

"The Belt and Road: Investing in China and Converging Thought "themed event was organized by China Daily website and sponsored by China Internet Development Foundation.

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