Chairman of EAEF reviews report on Egypt before House Committee

Chairman of the Egyptian-American Enterprise Fund (EAEF) James Harmon has reviewed a report on Egypt at the House Committee on Foreign Affairs.

"It is my distinct pleasure to share with you my experience as Chairman of the fund over the last five years and to highlight its importance as a tool for US foreign policy," Harmon told the Committee.

He began with an overview of the fund, a description of EAEF investments to date and its ability to serve as a catalyst for attracting foreign capital.

"We have now been up and running for the past two years as active investors in Egypt, and to date, have invested $98 million USD in Egypt and attracted an additional $110 million USD in foreign investments."

He told the Committee that the EAEF presents a promising opportunity to improve the lives of Egyptians and create jobs, given efforts to restructure US economic assistance to Egypt. 

"These aims are vital to US interests. The EAEF operates as a private entity - so while we consult with the Egyptian government, we have the liberty to choose investments that we believe will allow us to achieve the mission of the EAEF." 

He believes enterprise funds represent a model for sustainable economic development at little, if any, cost to the US taxpayer.

This is especially relevant at a time when others seek to scale back economic assistance to Egypt and US foreign aid more broadly, Harmon told the Committee. 

Under President Abdel Fattah El Sisi, the government has embarked on an ambitious economic reform agenda, Harmon noted.

In January 2017, Egypt’s cabinet approved a long - awaited bankruptcy law to protect investors and encourage entrepreneurship. It now awaits approval from parliament, he said . 

In May 2017, Egypt’s parliament passed a new investment law to stimulate new business and FDI, the EAEF chairman added. 

Following these moves, there has been an increase in FDI and renewed confidence in the Egyptian economy, Harmon said. 

Egypt’s economy now possesses the right macroeconomic fundamentals for attracting more FDI, he noted.

"By investing in Egypt, we are inspiring confidence in the economy and leveraging the success of our investments to attract new flows of foreign direct investment. This creates a multiplier effect and helps bolster
the government’s economic reform agenda. It also helps to sustain Egypt’s growth long after the EAEF is liquidated," he added.

Source: MENA