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Al-Ahram Weekly 6 - 12 May 1999 Issue No. 428 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 6 - 12 May 1999 Issue No. 428
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Profile Features Special Focus Travel Living Sports People Time Out Chronicles Cartoons Letters 'Vital for the future'
By Shaden Shehab
The principal aim of French Prime Minister Lionel Jospin's visit was to boost bilateral economic cooperation. "Our relations are eternal... France wants to join in modern Egypt's economic development because this is vital for the future," he told reporters.
El-Ganzouri and Jospin cut the ribbon to inaugurate FranceExpo '99
photo: Khaled El-Fiqi
Jospin, who received a red-carpet welcome from Prime Minister Kamal El-Ganzouri, signed, in the course of the Saturday-Sunday visit, three agreements and two financial protocols. He also witnessed the signing of two memoranda of understanding. On Sunday, he and El-Ganzouri opened the massive FranceExpo '99 trade fair.
The three agreements stipulate that France delivers nearly 25,550 tons of flour under a food aid programme, converts around 300 million francs (more than $50 million) of debts into investments to finance agricultural, social and environmental projects, and amends a 1980 tax agreement, with the aim of promoting economic and trade relations between the two countries.
The two financial protocols provide a 38.5 million franc ($6.4 million) grant for computerising the Alexandria library and another grant of 40.8 million francs ($6.8 million) to finance studies for the Toshka desert reclamation project in southwestern Egypt.
Jospin and El-Ganzouri attended the signing of two memoranda of understanding between the French state-owned Electricité de France (EDF) and Egypt's GASCO and CITY GAZ, covering the construction and fuelling of two power stations in Port Said and Suez, with a combined capacity of 650 megawatts. The French side will be responsible for construction and the Egyptian side will provide the natural gas that will fuel the two stations. Construction will begin in January 2000 in the Gulf of Suez and in July 2000 in Port Said. EDF will build and run the two stations for a 20-year period. The project will cost $760 million, 30 per cent of which will be self-financed, while the rest will be raised through loans.
The two prime ministers inaugurated FranceExpo '99 -- the biggest trade fair France has ever organised in the Middle East -- at the Cairo International Conference Centre (CICC). The inauguration ceremony was attended by several cabinet ministers, as well as Egyptian and French businessmen. The fair, which ends today, is intended to boost trade relations and provide French businessmen with the opportunity to meet with their Egyptian counterparts.
More than 200 French companies are participating in the fair, including 50 companies that already operate in Egypt.
Jospin said, "French companies are determined to participate in the vast transformation taking place in Egypt by increasing French investments and developing trade relations between the two countries."
On Monday, Citroen, the French car manufacturer, signed a contract with Egypt's Alpha company for the local assembly of the former's XSARA model, a $21 million joint investment.
France is the second biggest foreign investor in Egypt, lagging far behind the first, the United States, but coming ahead of Japan, Arab countries, Germany and Britain, according to the French Embassy. Jospin said that he expects that French investments will soar to LE1 billion this year. He expressed hope that Egypt would be able to narrow its trade volume deficit with France, calling for a "better equilibrium".
In 1997, Egyptian exports to France amounted to $1.4 million, while its imports stood at $293 million. France is Egypt's third-ranking trade partner.
Jospin told a press conference at the Middle East News Agency that "while these economic relations should continue to grow, they should not be at the expense of positive relations between Egypt and the European Union". The French prime minister said that his country supports "the positive results" of the partnership negotiations between the European Union and Egypt and "we are ready to intervene to remove obstacles facing Egypt in these negotiations".
The domestic investments of 100 French companies along with 30 Egyptian-French joint ventures amount to LE988 million. The investments cover transport, power, telecommunications, tourism, banking, water supply, cement and iron production.
El-Ganzouri said that Egypt is offering many investment incentives to French companies because their success will attract more French firms and even other foreign companies to come to this country.
According to Yves de Ricaud, the French commercial and economic counsellor in Cairo, "Egypt was chosen to host the event [the trade fair] this year due to its success in enhancing its economic growth over the past few years and sustaining an annual growth rate of five per cent and maintaining a four per cent inflation rate." He added that "another reason was to encourage French companies to come and invest in Egypt."
Jospin, who was initially scheduled to stay in Cairo for three days, decided to cut short his trip because of the Balkan crisis. He departed Sunday evening.
His two-day visit was the first by a French premier since 1992 and his first since taking office in 1997.
Jospin was accompanied by Foreign Minister Hubert Vedrine, as well as secretary of state for housing, Louis Besson, and secretary of state for foreign trade, Jacques Dondoux.
