Banks in need of boost

THE EGYPTIAN banking sector is not expected to do as well this year as it did the last. Results for fiscal year 2002/ 2003 will be worse than those for the previous fiscal year due to recession and tight credit policies, said Bahaaeddin Helmy, head of the Egyptian Federation of Banks.

Speaking at a press conference earlier this week, Helmy said banks need to increase their sources of revenue by diversifying their activities and services to include more retail and credit card banking.

The four public sector banks are to receive LE3 billion from the government needed to increase their capital and strengthen their performance and competitiveness, Helmy said.

On the rise

ORASCOM Construction Industries (OCI) posted LE84 million worth of consolidated net profits during the third quarter of 2002 compared to LE83.2 million in the corresponding period last year.

The increase, backed by currency gains on foreign income, came despite an overall slowdown in construction activities amid a recession-hit economy.

"Cement sales abroad have enabled the company to operate at peak efficiency, positively affecting its bottom line," said OCI Chief Executive Officer Nassef Sawiris.

The company said a $156 million syndicated loan package to finance its Algerian unit -- the Algerian Cement Company -- was due to close in November.

OCI has recently become the 10th Egyptian company to trade its shares in international markets using global depository receipts. The move aims at upgrading the company's international profile and attracting new shareholders.

Through its cement producing affiliate -- Egyptian Cement Company -- OCI issued LE1 billion worth of corporate bonds last month to replace its existing portfolio of bank loans.

The company operates in the fields of construction, building materials manufacturing and infrastructure development.

Industrialising Africa

EGYPT's Industry Minister Ali El-Sa'idi this week signed a new technical cooperation agreement with the United Nations Industrial Development Organisation (UNIDO). Designed to provide technical support for Egyptian industry, the agreement, signed in Vienna, Austria, also involves the establishment of a UNIDO office for Arab and African countries in Cairo.

Last week, UNIDO -- in cooperation with the Federation of Egyptian Industries (FEI) -- held a seminar on the occasion of Africa Industrialisation Day under the theme: "The Industrialisation of Africa and new Information and Communication Technologies".

"We mean to underscore the importance of the digital revolution in Africa's efforts to alleviate poverty and achieve industrial development," said the UN secretary-general in a speech delivered by a representative, Dysane Dorani.

Africa is facing serious challenges, including inadequate human resources, insufficient infrastructure and tariffs that discourage the production of processed goods and restrict their access to global markets, he said.

Information technologies, utilised as a fundamental part of industrial development, can improve the efficiency of production systems, Dorani said.

He called on the private sector to look closely at investment opportunities in Africa and work with governments and international organisations to create conditions that will be conducive to investment.

UNIDO Director General Carlos Magarinos said Africa Industrialisation Day represents an opportunity to address the problems of industrial development in the continent and to asses the prospects of achieving the goals set by African countries in their efforts to become equal partners in the transformation of the modern world.

A stable and persistent demand should be created for African products in the world market, he said, thus making the continent's industry an integral part of the world economy.

FEI chairman Abdel-Moneim Seoudi said despite his organisation's efforts to strengthen Egypt's trade relations with African countries, much still remains to be done to boost trade among African countries.

In 1990, the UN general assembly invited the international community to support the programme for the second Industrial Development Decade for Africa (IDDA) 1993-2002. UNIDO celebrates Africa Industrialisation Day every year in order to highlight the importance of IDDA to African countries.

One of UNIDO's goals is to provide technical assistance to African countries to enhance their capacity to overcome technical barriers to trade in industrial products.