The General Authority for Investment and Free Zones (GAFI) has seen a 15.4 percent increase in the rate of newly-established firms in Egypt during June 2020, compared with the same month of 2019.
In a press statement, a copy of which was obtained by Asharq Al-Awsat, GAFI said June has seen a remarkable increase in the indicators of establishing companies at its affiliated investors service centers.
The number of companies and installations established amounted to 1,672 compared to 1,449 in 2019.
According to the statement, this surge was reflected on the increase in the companies’ total exported capital.
“Their capital export reached about EGP7.9 billion in June, attaining an increase of 71.7 percent compared to EGP4.6 billion in June 2019.”
The Egyptians’ contributions to the newly-established companies’ capital export in June reached around 98.8 percent of the total exported capital.
GAFI had previously launched the “electronic company incorporation” service through the Authority's e-portal to activate its digital transformation system, facilitate procedures for investors and implement all their demands to accelerate all establishment procedures.
It has also sought to provide more facilitations, in implementation of orders issued by GAFI Executive Director Mohamed Abd El-Wahab.
These include providing accreditation services for general assemblies and boards of directors through the Authority’s e-portal as one of the precautionary measures taken to confront the novel coronavirus by limiting public gatherings.
Meanwhile, the government announced on Sunday evening the details of its plan to stimulate domestic consumption by activating economic growth, in an attempt to revitalize the economy affected by the coronavirus outbreak.
Minister of Finance Mohamed Maait said Egypt will launch a holding fund worth EGP2 billion to guarantee and stimulate domestic consumption.
The fund, which is financed by the public treasury, will be affiliated to the Ministry and has been set up to ensure protection of consumer financing, he explained, adding that more specialized funds will be set up in the near future.
“It aims at facilitating and increasing Egyptian citizens’ ability to obtain goods, services, and property, as well as reducing risks on financing various entities, by providing financial security to the authorities and companies involved.”
