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Al-Ahram Weekly On-line 12 - 18 October 2000 Issue No. 503 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly On-line 12 - 18 October 2000 Issue No. 503
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Elections Palestine International Economy Opinion Culture Books Interview Travel Living Sports Profile People Time Out Chronicles Cartoons Letters Partnering up
AS HOST of the Medpartenariat 2000 conference, Egypt eagerly promoted investment opportunities to businessmen from Mediterranean and European countries. No novice in holding this event, having hosted it in 1995, Egypt managed to attract representatives from 700 European companies, 300 Mediterranean companies and 400 local companies.A wide range of sectors were represented at the conference, including the automotive industry, food processing and packaging, building and construction, electronics and information technology, light engineering, textiles and provision of services.
Inaugurating the conference, Egyptian Minister of Economy and Foreign Trade Youssef Boutros Ghali emphasised that the government is encouraging direct foreign investment and expressed its commitment to promoting business in a way consistent with global economic developments.
Christian Falkowski, former head of the European Union delegation to Egypt, suggested that participation of so many European companies reflects "the importance of the Egyptian market to the European Union."
Egypt's General Authority for Investments (GAFI) used the venue to present several feasibility studies for projects in the fields of electricity, telecommunications, agriculture and industry that could be undertaken by foreign investors. According to Ahmed El-Ghamrawi, GAFI's chairman, total investment sought for these projects is approximately LE25 million.
To prepare Egyptian businessmen to make the most of the event, a training programme was conducted. According to Alaaeddin Ezz, coordinator of the conference, this programme focused on marketing and concluding business deals.
With the signing of 46 agreements, Ezz characterised the conferences as a success. He said that 29 agreements involve the transfer of advanced technology from the European side to Egyptian manufacturers to enhance the quality of goods produced. Egyptian consulting firms struck four agreements to provide information to European companies planning to invest in Egypt, he added.
World Bank tightens up
THE WORLD Bank has announced its lending commitments for fiscal year 2000/2001. Egypt will receive considerably less in the coming year compared to last year. During fiscal year 1999/2000, Egypt was lent $550 million. In fiscal year 2000/2001 it will receive $50 million.Since 1961 Egypt has received $6 billion in loans from the World Bank. Of these, $2 billion were from the International Development Association (IDA), a constituent body of the World Bank that provides interest-free credit for periods of up to 50 years to the world's poorest countries. This level of assistance makes Egypt one of IDA's major beneficiaries.
World Bank loans are provided to support programmes for education, health care, nutrition and social protection.
In 2000/2001, the World Bank will lend countries in the Middle East and North Africa $950.4 million for 21 projects in 10 countries. This figure includes $190.2 million in soft loans from IDA and $760.2 million in loans with market-based interest rates and payment terms.
Help wanted
MORE THAN 3,000 new jobs will be created within the next six months through the establishment of projects by the Social Fund for Development (SFD) in cooperation with other organisations.Using a LE5 million loan from the SFD, the Association of Development and Environmental Protection in Minya governorate will launch 170 projects to enhance agricultural production. Hussein El-Gammal, SFD managing director, said that these projects are expected to create approximately 900 new jobs.
Also in the area of agricultural production is a programme to be run by the horticultural unit affiliated with the Ministry of Agriculture and the Principal Bank for Development and Agricultural Development. The SFD will loan LE4 million and grant LE280,000 to the horticultural unit for the application of advanced technology to agricultural production. This agreement is expected to foster the setup of 55 projects through which approximately 450 new jobs will be created.
No doubt mindful of the fashion trend for clothing and accessories made from ostrich, another programme will establish 100 ostrich farms in the desert using a LE5 million loan and a LE30,000 grant. With financing provided by the SFD, the Egyptian Company for Investments and Agricultural Development will establish these farms which are expected to create approximately 450 jobs.
In the area of environmental protection, the Egyptian Company for Car Gas (CARGAS) has been loaned LE3 million and granted LE90,000. Explaining this programme, El-Gammal said, "Six hundred projects will be launched with the aim of minimising the pollution from auto-emissions." It is anticipated that this programme will create 1,200 jobs.
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