Mr. Hossam Heiba, GAFI CEO, affirmed that creating an attractive investment climate is a fundamental pillar for supporting and developing the food industries sector and enhancing its competitiveness at the local, regional, and international levels, in line with the objectives of sustainable development.
This came during his participation in the second session of the Fourth Annual Conference “Egypt’s Food… A Competitive Industry – A Sustainable Future,” titled “Towards an Attractive Investment Environment for a Competitive Industry,” attended by a distinguished group of government, investment, and industrial leaders.
Heiba explained that attracting foreign investment cannot be achieved without genuine expansion by local investors, stressing that foreign investor will not come unless they find an active local investor base. He pointed to the state’s success in building an integrated framework of investment incentives, including non-financial incentives, to support the competitiveness of both local and foreign investors, particularly in productive sectors, foremost among them the food industries. He also noted that the development of infrastructure—especially the modern road network—has facilitated the transport of raw materials and products between production areas and factories, positively impacting supply chain efficiency, reducing transportation costs, and enabling investors to implement their production plans and increase exports more easily.
He further indicated that the Suez Canal Economic Zone and the new ports, along with the logistical linkage between the Red Sea and the Mediterranean, provide a strong competitive advantage for expanding exports. In addition, the electricity energy crisis that previously posed an investment burden has been resolved, making power supplies stable and available without additional costs, thereby enhancing Egypt’s attractiveness for both local and foreign investment.
He emphasized that the stability of monetary and fiscal policies enhances investors’ ability to plan and forecast their businesses over the medium term, increasing confidence in the Egyptian economy.
He explained that the Investment Law provides broad incentives, including the recovery of 30% to 50% of the cost of any new project or expansion, in addition to a cash incentive allowing the recovery of 35% to 55% of the value of taxes within 45 days, supporting foreign currency inflows and strengthening local industry. The law also offers additional incentives related to financing, documentation, technology, training, and environmental protection, which may reduce the effective tax rate from around 19.5% to approximately 16% in some activities.
Heiba noted that foreign companies have expanded at a faster pace than Egyptian companies, highlighting the need to strengthen local capital. Nevertheless, foreign direct investment indicators remain highly positive, with expectations that incoming investments will double in 2025 and continue to grow in 2026 and 2027.
He called on Egyptian investors, whether operating locally or in partnership with foreign investors, to accelerate decisions to expand and increase their investments, emphasizing that the entry of new investors into the market reflects strong confidence in growth opportunities, making local expansion a necessity to enhance competitiveness.
He also stressed the importance of cooperation between the government and investors to overcome obstacles and accelerate expansion decisions, especially given the expansion of the domestic market and sustained growth in regional and global markets.
He explained that the network of trade agreements covering nearly three-quarters of the world’s countries, along with export support programs, provides real opportunities to boost growth and competitiveness. He affirmed that the coming phase requires greater activity from local investors to confront the large expected inflows of foreign investment.
At the conclusion of the conference, Mr. Hossam Heiba, GAFI CEO, honored prominent figures who have played an influential role in developing the food industries sector.
