Analysts predict the EGP will continue to strengthen against the dollar, according to the Oxford Business Group (OBG) in its latest report issued on Sunday.
The OBG explained that it expects an increase in the EGP value by 3.5%, to reach EGP 16 per $1 by the beginning of 2020.
“This would not only provide investors with greater returns, but also boost spending power in the energy and industrial sectors, both of which are heavily import-reliant,” the OBG added.
The OBG noted that observers point to oil and gas discoveries in the eastern Mediterranean earlier in March and July as key to reducing the import burden for sectors such as the chemical and plastic industries.
The research company stated that greater emphasis on industries that are not so reliant on imported materials should accelerate growth among various manufacturing segments, explaining that among them are ready-made garments and food and beverage manufacturing.
Indeed, the government plans to increase manufacturing’s share of the GDP from 17.1% in 2016 to 20% in 2020, Tarek Fayed, chairperson of Banque du Caire, told the OBG.
“The banking sector is very stable and there is a lot of liquidity among Egyptian banks, which are ready to support the growth of companies, particularly those in industry and looking to export,” Fayed told the OBG.