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Al-Ahram Weekly 27 May - 2 June 1999 Issue No. 431 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 27 May - 2 June 1999 Issue No. 431
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Profile Living Features Travel Sports People Time Out Chronicles Cartoons Letters On the road to COMESA
by Sherine NasrThe Egyptian Ministry of Trade and Supply is organising road shows to promote Egyptian exports to the member countries of the Common Market for Eastern and Southern Africa (COMESA).
"These exhibits will help Egyptian products access the African market," said Minister of Trade Ahmed Guweili. Data related to the products' manufacturers and addresses will be provided in order to faciliate any contacts which might be needed by African importers.
This week several Egyptian industrial companies flew to Kenya to display an array of products ranging from textiles and ceramics to food and engineering products. Other exhibitions, organised by the private sector in coordination with the Ministry of Trade, are scheduled to take place in the Sudan, Zimbabwe, Zambia and Uganda later this year, according to Guweili.
The COMESA market is relatively new for Egypt, compared to Europe and the US. This makes it important to study the nature of the different markets within the group and the means of penetrating them, according to trade experts at the Centre for Developing Egyptian Exports (CDEE).
In an unprecedented move, the Ministry of Trade and Supply has agreed to shoulder a portion of the accommodation costs incurred by small and medium-sized private sector companies who want to exhibit quality products in the COMESA markets, yet may not be able to fully bear the travel expenses. "We realise how costly this process can be, so it is one way of encouraging more Egyptian businessmen to find their way to these virgin markets," said Guweili. This offer of support comes as part of the Egyptian government's policy of boosting trade ties with the COMESA countries.
"African importers are cautious about new and untested products. Unless an importer tests the market for a certain product inside his own country first, there is only a slight possibility he will import it, " said Hamdi Salem, head of the CDEE, which has organised several marketing missions to the COMESA countries.
Two trade missions to Kenya and Uganda last month resulted in an agreement to establish an Egyptian marketing company, the Egypt-East Africa Company for Export and Import, with a capital of $10 million. Its headquarters will be in Kenya. "The company should export Egyptian products not only to the COMESA countries, but to the rest of Africa as well, " said Salem.
These missions also resulted in trade agreements worth $14.5 million. Some of the Egyptian products most in demand were fertilisers, pesticides, petrochemicals, food products, furniture and textiles.
In July a second marketing mission will head to Zambia and Zimbabwe. "We expect even better results because Egyptian products are building a good reputation in these markets," said Salem.
A great potential for trade exists between Egypt and the African countries which can lead to a high demand for Egyptian consumer products, according to Tarek Abbas, trade commissioner at the Ministry of Trade.
Egypt officially joined the COMESA in June 1998, a step which has potentially opened up a market of 370 million customers to Egyptian exporters. The 21 COMESA member states will gradually reduce tariffs on their intra-COMESA trade in preparation for a free trade zone scheduled to open in the year 2004. "The potential is great. We want to have our fair share of this market before it is too late," said Guweili.
