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Al-Ahram Weekly On-line 21 - 27 September 2000 Issue No. 500 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly On-line 21 - 27 September 2000 Issue No. 500
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Elections Development Region International Economy Opinion Culture Features Special Travel Living Sports Profile People Time Out Chronicles Cartoons Letters Ready to go
By Shaimaa Labib
A major gathering to discuss the Medpartenariat programme will bring together 700 European companies, 300 Mediterranean companies and 400 Egyptian companies this October, said chairman of the Federation of Egyptian Industries (FEI), Abdel-Moneim Seoudi this week. At a meeting organised by the FEI and the German-Arab Chamber of Industry and Commerce last Sunday, federation members met with these companies to discuss the final phases of the Industry Modernisation Programme (IMP), which aims at upgrading Egyptian industries through EU assistance, in order to compete adequately in the global economy and perform effectively in the impending EU-Egypt partnership agreement. Seoudi said: "We hope that the meeting [scheduled for 3 October] will provide our European partners with a view of what Egypt has to offer in terms of competitive advantages, incentives, and business opportunities. We have spared no effort in selecting 400 Egyptian companies representing the spectrum of opportunities Egypt can offer in investment, technology transfer, under-license production, subcontracting, and other types of long-term strategic alliances."
Mustafa El-Rifa'i
The Egyptian companies participating in the October meeting represent different sectors with a potentially competitive advantage in EU markets, including automotive industries, food processing and packaging, building and construction, electronics and information technology, light engineering, as well as services.
Seoudi added that the aim of this programme is to modernise and globalise Egyptian industries through modern technologies and management practices, and thus upgrade quality, reduce costs and increase exports.
Mustafa El-Rifa'i, minister of industry and technological development, said that the FEI has worked over the past few years to create links between Egyptian businessmen and their counterparts from the 15 EU member countries by organising events and visits.
"This was done with the objective of exposing Egyptian products and industries to the EU, which is our largest trade partner, constituting 45 per cent of our foreign trade," El-Rifa'i said.
He added that European partners will benefit from the many incentives offered by Egypt's investment policy.
"These incentives include low wages, tax exemptions, the availability of necessary industrial infrastructure in our industrial cities and a growing domestic market," he said.
Through joint ventures between Egyptian and European companies, El-Rifa'i added, "we will guarantee the best environment for accelerating the technology transfer necessary to raise the standards of Egyptian industry."
According to Christian Falkowski, EU ambassador to Egypt and head of the European Commission, "This programme is a step in a series of joint initiatives that were taken by the EU with regard to Egypt."
He added that one of these initiatives is the Private Sector Development Programme (PSDP), a five-year programme established by the European Community and the Egyptian government in 1996, and designed to provide technical assistance to Egypt's private sector companies to promote economic growth and development.
"This programme will provide you [Egyptian businesses] with an opportunity to gain exposure among your European counterparts who are already eager to enter into a partnership with you," said Peter Goepfrich, chief executive officer of the German-Arab Chamber of Industry and Commerce, addressing representatives of Egyptian companies.
He added that the European companies are now more eager to enter into partnerships with their Egyptian counterparts due to the success that Egypt has achieved in improving its economic environment.
"Egypt has finished an ambitious programme to modernise and develop its economy in general, a fact which will enhance the conclusion of partnership agreements between the two parties," Goepfrich said.
European direct investments, he added, have been growing in recent years, with major European and international brands setting up joint ventures in Egypt. "They [European companies] are interested in the considerable potential of the Egyptian domestic market and are also banking on the growing role of Egypt as a regional gateway to the neighbouring markets in the Middle East and Africa."
However, Goepfrich said, there are challenges that need to be overcome, the most important of which is the need to raise the volume of Egyptian exports to the EU.
"In order to do this, the volume and quality of non-oil related exports must be raised considerably, a goal which is already at the top of the agenda of the Egyptian government," Goepfrich said.
He added that Egyptian industry has to be modernised and developed in order to match the challenge of increasing competition in the home market resulting from the influx of imported goods from Europe. Egyptian businesses should also seek to increase cooperation with Europe in the framework of the Euro-Mediterranean partnership.
"We have organised a training programme, which started this week, targeting Egyptian companies participating in the October meeting. This programme will involve training Egyptian businessmen in the best ways to market their business and to conclude partnership agreements," Goepfrich said.
