EnterpriseAM sat down with Swiss Chamber of Commerce in Egypt President Kamal Abdel Malek (LinkedIn) just before the Swiss-Egyptian Economic Forum kicks off today to find out why Swiss companies have chosen to stay in Egypt through recent volatility, how they’re working to localize industries, and more. Edited excerpts from our conversation:

EnterpriseAM: Swiss companies have, on average, been present in Egypt for 48 years. Why do Swiss companies seem to be so deeply rooted in the market despite recent volatility?

Kamal Abdel Malek: The secret lies in the nature of Swiss investments, as they’re primarily industrial rather than purely commercial. We operate in sectors that touch citizens’ daily lives — pharma, food (such as baby food), and construction materials. These are long-term investments that don’t exit easily. Additionally, the cost of Egyptian labor following the devaluation has become very attractive and globally competitive, despite the difficult social impact.

EnterpriseAM: Swiss companies are earmarking USD 1.3 bn for expansion in the market. Is this funded by retained earnings or fresh capital?

Kamal Abdel Malek: Let’s be realistic — over the past two years, retained earnings were a primary tool for solving corporate issues. However, the crisis turned into an opening. Headquarters in Switzerland provided loans to their Egyptian branches, and it was wise to reinvest these loans and debts back into the local companies rather than attempting to transfer them abroad during a difficult time. More importantly, we have moved from importing components for local assembly to manufacturing components in Egypt and exporting them to global branches to ensure a sustainable stream of hard currency.

EnterpriseAM: There is an USD 800 mn gap between Swiss export potential to Egypt and the current figure. What is the obstacle standing in the way?

Kamal Abdel Malek: The primary obstacle is price competitiveness. Swiss products are known for quality, but they come at a high price. When Swiss companies find they cannot bridge this gap against competitors (like China and Turkey) based on price, it becomes a clear call for localization. If you cannot export to Egypt at a competitive price, come and manufacture here to benefit from local advantages and close that gap.

EnterpriseAM: How have free trade agreements like Comesa and AfCFTA affected Egypt’s attractiveness as a regional hub?

Kamal Abdel Malek: They are essential factors, but shipping and trade connectivity remain the biggest hurdles. To increase exports to Africa, the solution isn’t just financial subsidies; it’s creating real logistical shipping routes. Swiss companies like MSC are active in this field, but we need a clear air and land connectivity strategy to truly activate these agreements.

EnterpriseAM: What is the maximum local component percentage in Swiss-run complex industries like pharma? And is the quality of local suppliers satisfactory?

Kamal Abdel Malek: Our member companies provide qualification programs for local suppliers to bring them up to uncompromising Swiss standards. In pharma, it is complex due to global supply chains, but we are pushing for Egypt to become a manufacturer of components and a hub for manufacturing technology rather than just packaging. Swiss companies maintain strict oversight and periodic inspections of local suppliers to ensure compliance.

EnterpriseAM: Are inflation targeting and a flexible exchange rate enough to end concerns about repatriating earnings?

Kamal Abdel Malek: Swiss companies don’t look for momentary guarantees; they look for the sustainability of regulatory frameworks and laws. The Swiss accounting system pays taxes on projected earnings in advance every October, so any sudden change in Egyptian tax laws, accounting standards, or exchange rates during the year causes significant disruption. What we need more than anything is the stability of financial legislation.

EnterpriseAM: Which sector will surprise us by 2026? And what is the one obstacle you want removed immediately to attract more investment to that sector?

Kamal Abdel Malek: The renewable energy and waste recycling sector will be the dark horse. Switzerland is very advanced in technology that converts everything into energy or a new product. The obstacle we hope to see removed is regulatory bureaucracy and the overlapping of jurisdictions. The Swiss system operates bottom-up, while in Egypt, a top-down system prevails. Bridging the two requires greater regulatory flexibility.

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