AmCham Egypt
Limited Special Mission to Washington D.C.

May 7-12, 2023

A delegation of Board Members and senior executives representing AmCham Egypt visited Washington, D.C. for the Annual Doorknock Mission, during the period from May 7th till May 12th, 2023.

Over the course of five days, delegates took part in more than 65 meetings with Members of the U.S. Congress, Administration and Executive Branch officials, think-tanks, and leaders from the U.S. business community. These comprised of 31 meetings with Members of Congress and their staffers, nine meetings with the Executive Branch, including meetings with senior officials at the Departments of State, Commerce, and Defense. In addition to meetings with the Export-Import Bank of the United States (Ex-Im), United States Development Finance Corporation (DFC), Office of the United States Trade Representative (USTR), United States Trade Development Agency (USTDA), U.S. Patent and Trademark Office, and the Agency for International Development (USAID).

The delegation also had several meetings with senior representatives at Washington’s prominent Think-Tanks and Multinational Financial Institutions, including; the World Bank, and its Multilateral Investment Guarantee Agency (MIGA), the International Monetary Fund (IMF), Center for American Progress, Council on Foreign Relations, Washington Institute for Near East Policy, Congressional Research Center (CRS), Atlantic Council, Arab Gulf States Institute in Washington, Center for Strategic and International Studies (CSIS), and Middle East Institute (MEI).  

Doorknock meetings took place against a backdrop dominated by the “debt ceiling” crisis, where the U.S. Federal Government is running large annual budget deficits, and indicating the debt ceiling needs to absolutely be extended to avoid a U.S. default.

During their meetings, delegates promoted dialogue on important commercial issues as well as shared their perspective on social and political issues of bilateral importance.

The impact of external global shocks on Egypt’s economy was a common topic discussed during all meetings. Delegates explained that Egypt has been negatively impacted by the Russia Ukraine war, given it is the world’s largest importer of wheat sourced from Russia and Ukraine. Additionally, 20% of Egypt’s tourist inflows originate from those two countries. In 2022, imbalances started building amidst a stable exchange rate, high public debt, and delayed structural reforms, and the war crystallized the country’s vulnerabilities, triggering capital outflows, and, in the context of a still-stabilized exchange rate, reduced the central bank’s foreign reserves and banks’ net foreign assets and widened the exchange rate misalignment. The Egyptian pound was devaluated by almost 50% in the past few months, triggering a foreign exchange crunch and inflation spiked to 40%.

Additionally, other pressures imposed on the economy as a result in the recent influx of refugees from Sudan, adding to more than 10 million refugees already residing in Egypt and integrated within the economy, is said to be further exacerbating Egypt’s economic burdens. The delegation called for the U.S. to consider these pressures in assessing potential support programs to Egypt.

The delegation shared that the IMF’s recently approved Extended Funding Facility of three billion dollars envisages the implementation of a comprehensive policy package to preserve macroeconomic stability, restore buffers, and pave the way for sustainable, inclusive, and private-sector-led growth. The importance of expediting the reforms set forth by the government, and guided by the IMF was stressed during almost every meeting. The delegation explained that the divestments of state owned assets was well underway and that the increased role of the private sector is now a national priority.

The visit of the Congressional Delegation headed by U.S. Speaker of the House Kevin McCarthy during the first week of May and their meeting with President Sisi was discussed with Members of Congress and other stakeholders.

Additionally, the launch of the U.S. -Egypt Joint Economic Commission (JEC) on May 17th in Cairo, as an outcome of the Strategic Dialogue was discussed during Doorknock meetings with the Department of State and the Department of Commerce. According to U.S. Government officials the delegation met with during the Mission, JEC discussions are to be hosted by the Ministry of Foreign Affairs and would address ways of deepening the bilateral economic relationship, and focusing on key sectors including Sustainable Infrastructure, digital transformation, renewable energy and healthcare. The JEC is set to become an annual event.

Egypt’s role as a hub for green and renewable energy was also discussed during several meetings, shedding light on the country’s efforts to engage the private sector in achieving its ambitious commitments, and targeting a level of energy mix of new, renewable and green energy of 42.5% of its total energy supply by the year 2035.

During their discussions, delegates highlighted the fact that European companies have continued to expand their presence in Egypt within the renewable and power sectors, and that many opportunities exist for U.S. investors to explore and leverage. The potential role of the U.S. Development Finance Corporation (DFC) in supporting projects in these sectors was discussed during the meeting with Mr. Scott Nathan, CEO of DFC. Also during their meeting with the Director of U.S. Trade Development Agency (USTDA), the delegation learnt about the organizations priority areas for engagement with Egypt being; methane abatement, decarbonization, digital transformation and healthcare.

With regards to the future of the US-Egypt trade relationship, during the meeting with the Office of the United States Trade Representative (USTR), it was discussed that a round of Trade and Investment Framework Agreement (TIFA) talks is planned for next December. Delegates discussed that the recent agreement between both Egypt and Israel, related to goods exported to the U.S. under the QIZ agreement, according to which the Israel component may be reduced, which will further encourage exports.

During several meetings with prominent think tanks, the delegation continued to stress on the importance of maintaining a strong and robust bilateral relationship; given Egypt’s strategic role as an influential regional power. They highlighted the country’s pivotal efforts towards maintaining security and stability in the Middle East; being first in the region to sign a peace treaty with Israel, and its ongoing cooperation with countries of the Eastern Mediterranean region under the umbrella of the East Med Gas Forum (EMGF). On the issue of the Ethiopian Dam, delegates were keen on clarifying Egypt’s position, and outlined the likely impact of filling the dam on its national security. Accordingly, delegates urged the U.S. to resume its mediation efforts to assist in reaching an acceptable agreement.

On the general business environment, the delegation outlined the main features of the economic program adopted by the government, and some of the challenges facing the private sector including foreign exchange shortage, and the need for more clarity when it comes to economic policies. Delegates also emphasized the fact that the government is increasingly lending the private sector a carefully listening ear with respect to what is needed to improve the business environment, which is a positive signal.

Delegates also shared their perspective on the unmatched opportunity which Egypt represents for U.S. manufacturers and investors. Egypt is a strategically located, young and dynamic market of more than 100 million consumers, offering competitive access to the international markets of Africa and Europe through its existing trade agreements, thereby spreading the demand for American products across the region, lowering exporting costs and ultimately creating more jobs in the U.S.

During their meetings and discussions, the U.S. side made several notable observations regarding the deep need to continue communicating the positive story of Egypt, including; political and social stability; economic growth; sustainable development; social services like health and education; civil service reform; gender equality; entrepreneurship; and the revival of Egypt’s cultural heritage.

With regards to potential investments, representatives from the US Export-Import Bank expressed their interest in extending the Bank’s loan guarantee program for Egypt, as a potential supporting arm to the private sector. AmCham Egypt will be collaborating with the Bank in order to promote bilateral investments and highlight opportunities available for Members.

Several events were held on the margins of the visit;

• A Special Networking Reception was hosted by the U.S. Chamber of Commerce on May 10th on the Rooftop. The Reception featured remarks by Ambassador Moataz Zahran, Ambassador of Egypt in the United States, and was attended by H.E. Dr. El-Sayyed El-Qusair, Minister of Agriculture and Land Reclamation, who was on an official visit to Washington.

• A Limited Dinner for the AmCham Egypt Inc. Advisory Board and the AmCham Egypt Board was hosted on May 11th, in honor of  Mr. Tom Friedman, New York Times renowned columnist.

• A Special Breakfast Briefing hosted by the U.S. Chamber, jointly with AmCham Egypt Inc., and in honor of the Doorknock Delegation. The event featured remarks by Mr. Curtis Dubay, Chief Economist, and Ms. Ashlee Rich Stephenson, Senior Political Strategist.

Overall, the delegation ended their mission with a sense of optimism that Egypt has a lot of support on the highest levels. The delegation noted that Congress, the Executive Branch and the think tank community, continue to perceive AmCham Egypt as an independent and credible voice with which they can have an honest and open dialogue. AmCham Egypt’s U.S. affiliate – AmCham Egypt, Inc. - will be maintaining regular dialogue with stakeholders in Washington, as well as ensuring the Egypt economic developments are adequately communicated.