 |
Al-Ahram Weekly 6 - 12 April 2000 Issue No. 476 
|
||
Published in Cairo by AL-AHRAM established in 1875 |
| ||
|
Al-Ahram Weekly 6 - 12 April 2000 Issue No. 476
|
||
| Published in Cairo by AL-AHRAM established in 1875 |
| ||
Egypt Region International Economy Opinion Culture Summit Features Focus Travel Living Sports Profile People Time Out Chronicles Cartoons Letters Briefs
Green cooperation
A BLEND of French and American wheat is being launched in the Egyptian market. The new blend comprises 30 per cent French with 70 per cent American wheat, reports Shaimaa Labib"After we attain a satisfactory market share, the next step will be to blend French with Egyptian wheat," revealed George Malpel, general director of the French Federation for Cereal Exporters.
France exports one million tonnes of wheat to Egypt annually, which account for a significant fraction of the seven billion French francs worth of agricultural products exported by France to Egypt annually. Egyptian agricultural exports to France, mainly vegetables, amount to 1.2 billion French francs.
An active programme of agricultural cooperation between the two countries was initiated in 1984. Through it, France has directed 200 million francs in assistance to Egypt's agricultural sector.
An Egyptian French communication bureau for agriculture, affiliated to Egypt's Ministry of Agriculture since 1984, encourages joint agricultural projects in Egypt.
"The bureau is responsible for the Agricultural Development Fund, a collaboration between the two countries that extends French funding to agricultural projects," said the deputy agricultural attaché at the French Embassy in Cairo.
The bureau concentrates on irrigation projects and improving seed quality and production with programmes targetting young entrepreneurs. It is also responsible for monitoring projects and evaluating their results.
Plane toll
A DECREE by the Ministry of Transportation imposing parking fees on Egyptian and foreign planes not using services provided by EgyptAir has been criticised by Egyptian private air companies. "The fees are supposed to be in return for providing certain services, but non in fact are delivered," said Yehia El-Agati, Chairman of the National Aviation Company, one of seven private air companies.El-Agati said that many airlines have their own maintenance facilities and "hardly ever use the services extended by EgyptAir."
EgyptAir fees range from $100 for planes weighing less than 100 tons to $150 for planes over 200 tons. Fifty per cent of the revenue is to be channelled into improving aviation services offered at Egyptian airports.
Hardware retail
HEWLETT Packard, the leading US information technology company, has appointed Redington Egypt, alongside Orascom Distribution, as the authorised wholesaler for its range of hardware products in Egypt The office will sell products to resellers rather than end-users.The new office will provide marketing support for existing retailers, identify new ones and provide them with sales, technical training, and customer support.
Redington Egypt, a limited liability company, is the representative office of Redington Gulf.
Golden opportunity
AN INTERNATIONAL Jewellery Exhibition, organised by the Dubai World Trade Centre (DWTC) in collaboration with the World Gold Council (WGC), is due to be held in Cairo next May. The exhibition is expected to attract participants from the Gulf Cooperation Council and Europe seeking to expand their activities in Egypt."The jewellery market in Egypt is bursting with opportunities," said Jackie Reed, project manager of the exhibition.
Meanwhile, the event presents an opportunity for Egyptian jewellers to meet with their foreign counterparts and compete on an international scale.
According to the WGC, gold sales in Egypt are on the rise. But while a traditional affinity for gold has long guaranteed a solid market base, export opportunities remain largely unexplored by Egyptian jewellers.
"In 1998, Turkey -- a potential regional rival to Egypt in the market -- exported some 25 tonne of jewellery to the US alone," said Moez Barakat, the WGC's Regional Director for the Middle East. "And while Egypt attracts four million tourists every year," Barakat added, "gold sales to tourists are negligible. In contrast, the nine million tourists who visited Turkey last year purchased roughly 100 tonnes of gold items," said Barakat.
Barakat is "confident that the exhibition, combined with a strong marketing campaign, will increase and promote gold sales, and jewellery exporting from Egypt."
The exhibition will feature a wide array of jewellery including gold, silver, precious gems and pearls.
Austrian markets
AUSTRIAN Federal Minister of Foreign Affairs Benita Ferrero-Waldner, in Cairo this week to participate in the Afro-European summit, said there was "enormous potential" for bilateral trade between Austria and Egypt. To capitalise on this, a 25-strong delegation of Austrian consultants -- experts in environment, industry, management and marketing.-- will arrive in Egypt on 10 April.The Austrian Corporation for the Guarantee of Financing, Waldner said, which insures Austrian investments but which has so far restricted its activities to Eastern Europe, will expand operations into Egypt. It has already launched a campaign, "Going into Egypt", to encourage Austrian investment in the country.
Egypt's exports to Austria currently stand at $18 million, while Austrian exports to Egypt are worth some $125 million.
October blues
OVER-taxing, poor transportation and unfavourable trade agreements, particularly with Arab countries, are among the most obvious obstacles hindering exports," said Abdel Moneim Seoudi, head of the Egyptian Federation for Industries and a major investor in the 6th of October Industrial zone. Seoudi, voicing criticisms echoed by many other investors, was attending a meeting held this week between investors from the zone and Prime Minister Ebeid, and his criticisms were reiterated by many other investors, reports Sherine Nasr.The government, in response, said it realises that certain "rich" markets need to be targeted more heavily. According to Ebeid the US, the EU and the Asian markets represent "our biggest challenge."
Yet despite repeated government announcements that it is committed to integrating Egypt in the global economy, exporters still insist it is not doing enough to remove the obstacles that impede their performance.
Exporters to COMESA members, for instance, are urging the government to support them through the provision of export guarantees.
"Opening new markets in these countries has proven to be very costly," said Seoudi. "The banking sector in Egypt does not want to take any risk, and so will not extend credit to exporters to COMESA unless they have a proven track record. This discourages many exporters from exploring the African market."
Ebeid agreed that the banking sector remains over-cautious. "Our abilities will remain limited if we continue to rely on a few businessmen who are willing to gamble, while we wait and see," he said.
Exporters to Arab countries, meanwhile, complain about haphazard tax structures which, they say, place an unfair burden on them.
"Under bilateral agreements signed with several Arab countries Egypt imposes zero taxes on agricultural imports while the same local products are taxed," said Hassan Youssef, an exporter.
