Japanese investments in Egypt surge 140% to $60mln in 2024
Japanese investments in Egypt rose 140 percent year on year, reaching $60 million in 2024 up from $25 million in 2023. However, further enhancements to the investment environment are crucial to attracting greater inflows.
Awai told Zawya Projects that new investments in the pipeline include a factory for automotive wiring and an existing factory expansion, which he didn't identify.
Together, the two projects are expected to generate 12,000 job opportunities, he said on the sidelines of the inauguration of Daikin Egypt's headquarters in New Cairo. The firm, which set up shop in 2016, is the local arm of Osaka-based Daikin, a leading global player in heat pump, air conditioning, and air filtration technology.
Despite the growth in Japanese investments, Awai noted that investment levels in Egypt don't correspond to the size of the world's fourth largest economy. He emphasised the need to enhance the investment environment to attract more Japanese businesses.
'The Egyptian government is making clear efforts to improve the business climate," he said, highlighting the importance of continuing economic reforms.
Japan is closely monitoring Egypt's economic landscape and supports ongoing structural reforms aimed at enhancing the investment climate, he said.
Awai highlighted that Egypt-Japan relations have advanced significantly, particularly after Japanese Prime Minister Fumio Kishida's visit to Egypt in 2023, where both countries agreed to elevate their ties to a strategic partnership.
In the education sector, cooperation between the two nations dates back to President Abdel Fattah El-Sisi's visit to Tokyo in 2016, which led to projects such as Japanese-Egyptian Schools (EJS) and the Egypt-Japan University of Science and Technology (E-JUST). The upcoming E-Kousin project will further support engineering and technical education to meet labour market demands.
Trade and Infrastructure
The Suez Canal Economic Zone (SCZONE) has also witnessed developments, including the upcoming launch of the Ro-Ro terminal for car transport, Awai said.
He pointed out that the Japan External Trade Organization (JETRO) has organised trade missions to Egypt, focusing on tourism and industry, with Japanese tourism companies exploring cooperation opportunities.
Additionally, the Japan International Cooperation Agency (JICA) continues to support Egypt's development projects through concessional loans and grants, with the latest loan agreement signed during International Cooperation Minister Rania Al-Mashat's visit to Japan.
(Reporting by Marwa Abo Almajd; Editing by Anoop Menon)
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