After Egypt's painful economic reforms and $12 billion IMF loan, the UK Embassy releases a statement announcing a plan by oil giant BP to invest $13 billion in Egypt by 2020.
It appears that British oil giant BP Global is eyeing a massive $13 billion investment in Egypt before 2020, according to a statement released by the UK embassy in Cairo on Monday.
The statement claims that, since 2011, British companies have invested as much $30.5 billion, and that the three biggest British companies – Vodafone, Unilever and GlaxoSmithKline – have invested EGP 3.785 billion in just the last month.
Aside from mentioning investment plans, the UK embassy also highlighted their role in helping Egypt receive approval for the recent $12 billion IMF loan. According to the statement, “The UK played a vital role in the IMF decision as a founder and important contributor to the fund,” also adding that Egypt’s reform programme will “revive Egypt’s growth prospects by restoring stability and confidence in the economy, attracting investment and creating jobs.”
It’s not clear just how influential the UK was in the IMF negotiations, however, the approval of the loan is a direct result of the painful economic reforms recently implemented, which ranges from introducing a new value-added tax and cutting energy subsidies to implementing a plan to clear outstanding arrears to international oil companies.