A flawed system of the generation and distribution of energy was the basic reason behind the deterioration in Egyptian economy over the recent years, Minister of Investment Ashraf Salman told the Daily Telegraph in statements published Tuesday.
“The Government has already started to roll back energy subsidies – an arcane legacy of the days of Gamal Nasser in the 1950s – raising electricity and fuel prices in a major economic reform step which according to the World Bank will reduce the deficit to 11 percent of GDP by the end of the year,” the newspaper noted.
Salman added that power generation will be a key target of foreign investments targeted by his country, noting that Egypt intends to generate a capacity of 60,000 megawatts of power over the next decade, with an estimated cost of US$45 billion.
“Luring foreign direct investment back to the country after the uncertainty caused by the Arab Spring in 2010 is crucial to reducing the country’s deficit – currently 15 percent of gross domestic product – and achieving growth of 3.5 percent this year,” the newspaper quoted Salman as saying.
