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Al-Ahram Weekly 23 - 29 March 2000 Issue No. 474 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 23 - 29 March 2000 Issue No. 474
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Features Focus Travel Living Sports Profile People Time Out Chronicles Cartoons Fleming's Apology
THE BRITISH investment bank Robert Flemings has apologised to the Egyptian government for a report published last week downgrading its rating of the Egyptian economy's performance from neutral to underweight.Flemings attributed its rating to a number of macroeconomic problems hindering economic growth. One major factor which it cited was unstable interbank rates. The retreat in net foreign assets and foreign reserves, accompanied by a rise in credit extended to state authorities have all exerted a pressure on the exchange rate, said the report, and increased the possibility of currency devaluation in the near future.
Interbank rates have over the past six months exceeded 17 per cent, a worrying level that caused the Central Bank of Egypt (CBE) to consider setting a benchmark for the interbank rate among Egyptian banks, modelled after LIBOR, the London Interbank Overnight Rate.
Egyptian businessmen and officials had expressed their reservations on the report, describing it as subjective and based on outdated data.
Ebeid said that apologies notwithstanding, Flemings must publish a correction of the erroneous figures used in its report, which date to the South East Asian crisis of 1997.
Seeking partners
MORE than 700 Egyptian and foreign companies are expected to come together to explore potential partnerships during Medpartenariat Egypt 2000, scheduled for 3-4 October.The business partnership scheme targets small and medium-sized Egyptian companies seeking ties with multiple partners from across Europe and the Mediterranean region.
Medpartenariat Egypt 2000 is the culmination of a two-year programme aimed at helping local companies seeking long-term international business partners, technical support, training and international exposure.
Modeled after the Europartenariat, the European Union's business cooperation programme, the two day programme will include pre-scheduled meetings between potential partners. To maximise the chances of success, contact between potential partners is based on an extensive prior exchange of information, intended to facilitate a realistic assessment of competencies, capacities and business aspirations before any face-to-face meetings take place.
The event aims at encouraging commercial agreements across the board, including agencies, subcontracting, marketing, promotion or reciprocal representation, technical cooperation, joint-ventures, mergers, acquisitions, co-financing, license agreements, assembly and feeder industries. Companies already intending to participate include garment, textile, leather goods, chemicals and electronic manufacturers, alongside companies working in the information technology, environmental technology, food processing, service, pharmaceutical, cosmetic, metallurgical and feeder industries.
Medpartenariat Egypt 2000 is co-financed by the MEDA programme of the European Commission, and will be co-organised by the Federation of Egyptian Industries and Magicx, a company specialising in the management of international conferences and exhibitions.
Toasting profits
AL-AHRAM Beverages Company (ABC) posted record results for 1999.Last week Ahmed Zayat, executive chairman of ABC, revealed that sales had increased by 46 per cent, from LE207.6 million to LE303.4 million. He said that while his company had spent the last three years upgrading the quality of its products, it now plans "to invest for volume growth, by totally focusing on our consumers."
The company's operating income increased 42 per cent from LE80.8 million to LE14.6 million while gross profits registered a 45 per cent increase, up from LE136.8 million to LE198.1 million.
During the six months ending December, sales increased to LE160.9 million, primarily as a result of significant growth in the market for non-alcoholic beer, while increases in the first half of the year had been spearheaded by the company's entry into the wine market following its acquisition of the Gianaclis Winery.
ABC changed its fiscal year-end to December from June in response to investor requests which were approved during its extraordinary general assembly in September 1999.
