Egypt’s economic rebound against the pandemic is expected to slow down, says Sherine Shohdy, Coverage Director for Egypt at CDC. The pandemic has battered the Egyptian economy, slowing down growth, undermining external income sources and affecting fiscal consolidation.
According to the World Bank, the country’s economic growth slumped 3.5 percent in 2020 from 2019’s 5.6 percent, after recording several years of economic expansion. Egypt’s tourism segment has been walloped and there has been job loss across sectors such as construction, manufacturing, retail and wholesale trade. While businesses are mired by economic uncertainty.
Mr Sherine Shohdy said that the current year will be a challenging one for the Egyptian economy, where there is a possibility of an economic contraction of 2.3 percent leading to pressure among households and businesses, pushing more families into poverty. CDC is expected to assist the private segment at critical times during this challenging period.
Egypt is a vital market for CDC and the company sees strong investment potential, supported by the government’s pro-business action and entrepreneur culture.
Mr Sherine Shohdy, told the media, “The pandemic has tested medical staff and healthcare facilities worldwide, highlighting the importance of resilient health systems. In February, CDC announced a $100m investment in Alfa Medical Group to expand its diagnostics business and medical facilities, which are available to all income levels. This is our largest direct equity investment in Egypt and we remain committed to investing in the country to accelerate its economic recovery.”