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Al-Ahram Weekly 15 - 21 June 2000 Issue No. 486 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 15 - 21 June 2000 Issue No. 486
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Features Travel Living Sports Profile People Time Out Chronicles Cartoons Letters Business, Italian style
By Shaimaa LabibHow to do business with Italy? This was the theme of the seminar held last week to assist private Egyptian companies in penetrating the Italian market and establishing business partnerships in Italy. Italian officials participated in the one-day seminar, organised by the European Commission-funded European Information Correspondence Centre (EICC), in cooperation with the Italian Embassy in Cairo.
"Enhanced bilateral cooperation is evidenced by the increased number of visits by Egyptian and Italian officials and businessmen to and from both countries to discuss possible investment opportunities and trade agreements," said Raffaele de Lutio, deputy head of mission at the Italian Embassy.
He added that the Italian government is, on its part, committed to assisting Egyptian businesses in establishing ties with their Italian counterparts. "An office for the Italian Trade Centre was inaugurated in Cairo in 1977, with the aim of promoting Egyptian exports to the Italian market as well as informing businessmen from both sides on available investment opportunities," de Lutio said.
The Italian Trade Centre in Cairo is affiliated with the Italian Institute for Foreign Trade, a governmental agency whose mandate is to promote economic and commercial relations with foreign countries.
"The office is intended to provide Egyptian companies with information on Italian economy, commerce and foreign trade. It also provides them with lists of Italian companies and business institutions to which they can refer for potential business partners," said Filippo Lanciotti, director of the Italian Trade Centre office in Cairo.
Italian companies operating in Egypt have tended to concentrate investments mainly in textiles, oil exploration and refining, automobiles and electric appliances production.
"Italy is the third commercial partner to Egypt after the US and Germany. Italian investments in Egypt amounted to $105 million, [excluding investments in the oil sector] last year with an increase of 63 per cent over the 1998 figure," Lanciotti said.
Italian facilities are not limited to providing financial services to Italian-Egyptian companies operating in Egypt, but include the promotion and support of Egyptian Small and Medium-sized Enterprises (SMEs), via the Italian Investment Promotion Unit, (IIPU), an integrated support programme for the development of SMEs in collaboration with the Italian enterprises.
"The programme is an initiative launched in 1998 by the Italian government and the General Authority for Investment and Free Zones [GAFI]. The programme is implemented by the United Nations Industrial Development Organisation [UNIDO]," said Alessandro Parlatore, head of the IIPU in Cairo.
In terms of technical assistance, IIPU assists in the preparation, formulation and negotiation of joint venture agreements and other forms of industrial cooperation with Italian counterparts.
"As for financial assistance, IIPU provides a credit line facility to Egyptian SMEs from the Italian government which is made available through the Egyptian banking system for financing SMEs acquisition of equipment of Italian origin, technical training and assistance, industrial patents and licensing," Parlatore said.
IIPU also organises exchanges of business missions for Egyptian and Italian entrepreneurs to discuss business. "Last year, we organised a business mission for delegates from 24 Egyptian companies to Italy to visit specialised exhibitions and investment forums. This is done with the objective of providing them with an opportunity to meet with their Italian counterparts to discuss possible business opportunities," Parlatore said.
Like IIPU, the Italian Chamber of Commerce in Cairo provides Egyptian companies with information about international exhibitions taking place in Italy, as well as assistance on how to exhibit in order to promote their products. The Italian Chamber of Commerce also conducts market studies for Italian companies seeking to invest in Egypt.
Among the European facilities in Egypt supporting business with Italy, as well as other EU countries, is the Private Sector Development Programme (PSDP), which is EU-funded under the umbrella of the Euro-Mediterranean Partnership Agreement. PSDP was inaugurated in 1996 with the aim of promoting Egyptian economic growth and the development of a market economy in Egypt by providing technical assistance and consulting services to Egyptian SMEs.
"The programme aims at enhancing SMEs' competitiveness and capabilities in order for them to meet the requirements of their European counterparts. This will help promote trade ties between Egypt and EU members," said Philip Corish, PSDP project manger. He added that a new programme is expected to be initiated next year within the framework of the PSDP. "An industrial modernisation programme is currently under discussion and will be inaugurated next year. The programme, which will receive EU funding worth 250 million Euros, provides specialised technical assistance to SMEs in order to help Egypt radically improve and modernise its industrial sector," Corish said.
Participants in the seminar agreed that the absence of reliable information to Egyptian businessmen concerning business opportunities in EU countries presents an impediment to increasing business.
"A few months ago, we started a series of seminars with individual EU countries where officials and businessmen are invited to discuss possible business opportunities," said Noha El-Sayed, EICC manager. Business seminars until now have included France, Romania, Holland and Austria.
She added that EICC, inaugurated in late 1998, "organises business missions to and from Egypt to provide Egyptian businessmen an opportunity to meet with their European counterparts to discuss possible investment opportunities."
