China Invested $10 billion In Egypt In 2016 – know why
Recent news reports state that “China has Invested $10 billion In Egypt In 2016, Here’s What’s In Store For The Future.
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Investments of China in Egypt
Egypt’s (EGPT) banks are turning towards China (FXI) for expansion and collaboration. Egypt is also expected to be a key beneficiary of China’s One Belt One Road project. Now, we will assess some investments made by Egyptian banks in China, as well as investments by Chinese Banks into Egypt.
China is the largest investor in Egypt’s Suez Canal Corridor project. Chinese companies have also been investing in a range of sectors in Egypt that span from port building to power transmission. In a recent interview, Han Bing, minister counselor for economic affairs with the Chinese embassy in Cairo stated, “The number of Chinese companies operating in Egypt increased from 30 in 2014 to more than 100 for the time being.”
President of China visits Egypt
In 2016, Chinese President Xi Jinping’s visit to Egypt resulted in investment deals worth $10 billion for Egypt. Further, in February 2017, the Industrial and Commercial Bank of China (IDCBY) announced plans to invest $35 billion in the Arab nation. Of this, $20 billion will be new investments over the next 10 years through bank financed projects
At an investment forum held in Beijing on May 14-15, the two countries signed six memoranda of understanding. The agreements include investments by the China Development Bank and Export-Import Bank of China for a power transmission line in Egypt, a project to develop the El Sukhna Port, and a $500 million loan from China Development Bank.
Signing of Loan Agreement
Banque Misr, Egypt’s Central Bank signed a loan agreement worth $500 million with the China Development Bank (CDB). This loan will finance joint projects in Egypt over the next 8 years. In 2016, CDB’s loan outstanding in Egypt was near $2 billion. Banque Misr also opened a representative office in Guangzhou to facilitate trade between the two countries.
Disclaimer: This article is originally written by Ridhi Khaitan. This column does not necessarily reflect the opinion of the editorial team or FronteraNews.com.
