Dr Ahmed Nazif Prime Minister of Egypt

The Egypt that incumbent Prime Minister Ahmed Nazif inherited on taking office in July 2004 was in fiscal disarray, with plummeting economic activity and staggering living costs. For this reason, when President Mohamed Hosni Mubarak invited Dr Nazif to assemble his cabinet, it was with one single focus – sweeping economic reform.

This Dr Nazif set about with relish, introducing several key initiatives to reduce taxes and tariffs on foreign investment, simplify procedures and breathe new life into Egypt’s stuttering privatisation process. The results were almost immediately tangible. A new taxation edict was passed in 2005, which saw corporate tax rates slashed from 40 per cent to 20 per cent. Dr Nazif succeeded in stabilising the Egyptian pound, which had lost over 50 per cent of its value as a result of the previous administration’s ill-fated 2003 decision to liberalise its exchange rate, leading in turn to a 50 per cent leap in the price of imported items. As a result of Dr Nazif’s reform programme, the growth curve in Egypt has turned sharply upwards, capped by a tripling of foreign investment to $6.1 billion during the last financial year, and a 6.9 per cent increase in real GDP during the same period – the highest rate achieved since 1999.

Born in Alexandria in 1952, the 2004 appointment of Dr Nazif as premier was seen as a sea change in Egyptian politics, which had had its share of critics inside the country and from abroad following what were perceived as flawed presidential elections in 2005. A studious man with a pedigree in the field of ICT, Dr Nazif had previously served as first minister of communications and information technology from 1999 to 2004, during which time his penchant for reform was evidenced in the hugely successful liberalisation of the sector. As one Egyptian commentator puts it, “Dr Nazif stands accused of not having enough interest in politics, an accusation that I find reassuring. We have had plenty of politicians in this country. What we need now is someone reliable and incorruptible.”

Indeed, Dr Nazif’s record thus far speaks for itself, as decentralisation invites increased foreign investment, public-private partnerships wax and an open economy breeds competitiveness, the Egyptian economy is enjoying its highest ebb in decades. With a population of some 78 million and its long-standing status as a centre for commerce that links Asia, Africa and Europe, Egypt is well poised to take its place at the heart of global business.

‘The essence of the role of state is to serve the public’

With reforms and modernisation well underway, Egypt is once again becoming a regional economic power, and attracting investment from abroad. Dr Ahmed Nazif explains his administrations achievements to date and its national and regional goals.

How would you evaluate the results of reform, and the current business environment in Egypt?
For the last two decades, Egypt has been on the path of reform and modernisation. However, the last three or four years have witnessed a remarkable increase in the pace of reform. When the new cabinet was formed, we created a programme of comprehensive political, economic and social reforms.
We took decisive action to regain the confidence of the business community. We implemented tax reforms and brought them down by half, but the figures were not the only change we made, also the way we treat investors. We simplified the procedures for establishing a company by creating the one -stop shop. This new approach had a strong impact and was highly successful. In the first year, the growth rate grew and the currency became stable.

What are the main investment opportunities you would highlight in Egypt?
In addition to the traditional sectors which are available in Egypt, we are opening new sectors which we had not tackled before, such as services, where it is possible now to invest in the long term through public-private partnerships. Previously, investments in water, roads, electricity, oil and gas and construction were carried out by the government. Now we have opened these sectos for private investors as well. We are also developing tourism and the concept of second homes on the red sea, while the IT and telecommunications field is also very dynamic.

How would you assess the importance of Egypt as a peacekeeper in the region, and a role model for stability and modernisation?
Egypt has always been perceived as the leader in the region and the centre of culture and arts for the Arab world. We have the most populous country in the region and until recently we had the strongest economy, until oil prices went up and strengthened the economies in the Gulf area. Nevertheless, the Arab countries have always looked to Egypt, and what happens in Egypt is quickly reflected on its neighbours. Nowadays, Egypt has become one of their preferred destinations for business.
Moreover, Egypt plays the role of regional peacekeeper. We played an important part in the Palestine-Israel conflict, and in Lebanon and Darfur. We want to enhance peace and cooperation in the region because it is the basis for any kind of growth and development to happen.