PROJECTS: Egypt's sovereign fund bets on broad-based national investment strategy

The Sovereign Fund of Egypt (TSFE) prefers to invest in sectors targeted by the Egyptian state and partner with the private sector to turn investment opportunities into reality, its CEO said.

Speaking at the third Egypt Economic Summit on Tuesday, Ayman Soliman said TSFE’s investment map is diverse.

“We have several sectors with promising opportunities, namely education, healthcare, infrastructure, financial inclusion and technology, real estate and tourism, all of which represent a broad base of national investment,” he said, adding that these sectors also offer opportunities to partner with the private businesses.

He pointed to TSFE’s membership of an international consortium setting up a green ammonia project in Egypt.

“An alliance was recently announced to establish Egypt’s first plant to produce green ammonia, which can be used as a green fuel in the maritime transport sector, a major emitter of greenhouse gases. Egypt can provide green ammonia bunkering services for international ships passing through the Suez Canal. This represents a qualitative leap for the Egyptian economy, and results in a lot of investment opportunities.” Soliman explained.

Talking about the logistics sector, he said the fund is contributing to the establishment of four strategic warehouses with the Ministry of Supply and Internal Trade.

He said: “We aim to create link between Egypt and African countries to exploit promising opportunities in the African continent and with sister countries that have great purchasing power.”

The TSFE CEO said that in the health sector, the Fund is looking to rope in the private sector to develop hospital and clinical capacities, whereas in the agricultural sector, it has created a dedicated fund for making investments to increase export capacity.

In the tourism sector, Soliman said Egypt has started to reshape the elements of its main touristic attractions by establishing events like The Pharaohs' Golden Parade in Cairo and projects like The Sphinx Avenue in Luxor, and the National Museum of Egyptian Civilisations in Cairo.

He said the government decided to develop Tahrir Complex as pilot for the redevelopment of heritage buildings, in addition to the opening of the Grand Museum, as part of its efforts to develop new avenues of cultural and business tourism and drive Cairo’s tourism recovery.

The government is also looking to create opportunities for investments in education and social infrastructure. “Investing in an educational product with reasonable cost and high efficiency will reduce the burden on the Egyptian government, achieve a return on the capital with a focus on sustainability, which is one of the most important factors for the success of the educational system,” said Soliman.

Regarding the manufacturing sector, he said Egypt’s industrial base is not commensurate with the size of the economy, adding that the state is addressing that with huge investments to localise the industry, and attract global manufacturers to invest in the country.

(Writing by Eman Hamed; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)