Mahmoud Mohieldin, World Bank Group’s Senior Vice President for the 2030 Development Agenda participated on Wednesday in a virtual symposium on investment opportunities in Egypt, which was organized by the Egyptian Junior Business Association (EJB).
Mohieddin pointed out that the future of the world’s economies is linked to mass vaccination, referring to the statements of the International Monetary Fund (IMF) and the World Health Organization (WHO) about the importance of vaccinating 40% of the world’s population the end of this year, while the other 60% next year.
He pointed out that “before the outbreak of the coronavirus crisis, concerns were increasing about the decline in global growth rates due to various factors, including global debt and climate change.”
Mohieldin indicated that the US growth rate is expected to reach 6% by the end of this year, rising over the next two years, while the rate in China is expected to reach 8%.
In Europe, he forecasts a 3-4% growth, while in the emerging markets, growth is expected to reach 4.3%. The Middle East region has lost 5% of its growth rate due to the pandemic, he pointed out, and will achieve a positive growth rate of 1% this year and 3% in next two years, he said.
Egypt was one of the few countries that achieved positive growth rates driven by economic reforms at the end of 2019. He expects Egypt to record a 2.7% growth this year and 5% the next fiscal year.
He pointed out that economic policies should be flexible with the need to mobilize employment towards growing sectors and expand social safety nets.
He called for activating smart and green investments, as well as benefiting from government initiatives such as the government’s “Decent Life” to develop villages. The private sector must also cooperate with the state to achieve a leap in exports, sustainability and digital transformation.
Mohieldin pointed to the need to strengthen economic cooperation with Arab and African countries, as Egypt could be an investment magnet, and an important hub in supply chains.
He said that small and medium-sized enterprises (SMEs) companies should go towards digital transformation and sustainability, and receive the required funds.
The WB Senior stressed that investment in Africa should be based on full awareness of the culture of African markets and their marketing capabilities, and the availability of partners familiar with the market, pointing to the diversity of sectors, including education, healthcare, tourism, infrastructure, and mining.
He stressed the importance of communication and the exchange of visits between EJB and their African counterparts.