Charitable banking

EGYPT'S first "affinity card" was launched by Citibank Egypt, in conjunction with the Association of Friends of the National Cancer Institute (AFNCI) and Mastercard. Money raised from the new card will help the AFNCI build a state-of- the-art hospital for children with cancer.

Holders of the Citibank-AFNCI Affinity Card will automatically donate one per cent of their retail spending in local currency, at no extra cost, to AFNCI as a contribution towards building the hospital.

"We are particularly pleased to be entering this strategic alliance with Citibank," said AFNCI Secretary-General Sherif Abul-Naga. He believes the new Citibank-AFNCI Affinity Card will revolutionise the concept of philanthropy by allowing people to donate through everyday activities.

AFNCI management said work on the building has been completed and that the interior furnishings will be purchased soon. Current fundraising activities are focused on equipment and training, which is expected to cost around $35 million. If the funding keeps abreast of the construction schedule, they expect the hospital will open in the fall of 2004.

Bolstering the business lobby

SHAFIK Gabr, chairman of Egypt's International Economic Forum, held a meeting last week with the chairmen of a number of business associations. The meeting aimed at buoying up cooperation among private sector players to enable them to meet local and international economic challenges.

The gathering was attended by a host of prominent figures, among whom were Said El-Alfi, chairman of the economic committee at the People's Assembly, Khaled Abu Ismail, chairman of the Federation of Egyptian Chambers of Commerce, and Taher Helmi, chairman of the American Chamber of Commerce in Egypt.

Gabr said collaboration among business associations will help the private sector overcome the problems plaguing the economy due to the fall in local and foreign investment flows to Egypt.

While the world moves ahead at a dizzying pace, Gabr said Egypt's businessmen still face complicated bureaucratic procedures and a slow reform pace. The private sector should take the initiative, he said, in prodding all concerned parties to achieve progress.

Participating business representatives decided to hold a monthly meeting to discuss the investment climate and key business-related issues.

Striking new oil

BP EGYPT, the local arm of British energy firm British Petroleum, has made a new oil discovery in the Gulf of Suez. The Saqqara Well is the largest oil discovery in the region in 14 years, with estimated reserves of 80 million barrels.

According to BP, annual average flow rates from the well are likely to reach between 40,000 and 50,000 barrels per day.

BP Egypt has been involved in the Egyptian oil and gas industry for 40 years. Its main activities are focussed around exploration and production. Until recently, BP Egypt's main area of activity was concentrated in the Gulf of Suez where the Gulf of Suez Petroleum Company (GUPCO) -- BP's joint venture with the Egyptian General Petroleum Company (EGPC) -- has produced over 4.3 billion barrels of oil since the late 1960s.

During 2003, BP Egypt plans to drill three exploratory wells in the Gulf of Suez.

IFC aid for trade

THE INTERNATIONAL Finance Corporation (IFC), the private sector arm of the World Bank Group, and Citibank signed a $60 million trade enhancement facility designed to help private sector Egyptian importers with financing for the import of capital goods and raw materials.

The facility will give private sector businesses in Egypt better access to qualifying trade credit instruments originated by selected commercial banks. The facility will include the National Bank of Egypt, Banque Misr, the Egyptian American Bank, the Export Development Bank of Egypt and Misr International Bank. IFC will guarantee 50 per cent of each transaction.

"This facility will enhance the availability of trade finance to Egyptian importers by helping supplement country limits currently available to commercial banks operating in Egypt," said IFC's director for global financial markets, Karl Voltaire. "It will help maintain the level of trade finance flows to the private sector in Egypt at a time when such finance is needed."

Given the various adverse external shocks, it is particularly important to maintain trade flows, since they contribute significantly to the level of economic activity in Egypt. "IFC is also considering participating in other projects that will help strengthen Egypt's economy and restore investor confidence," said IFC's Director for the Middle East and North Africa Sami Haddad.

For Citibank, the move means an expansion of its business.

"This new facility will allow us to multiply and enhance our correspondent banking business in Egypt, making additional facilities available to Egyptian banks that fit a strong risk profile," said Citibank region head for North and West Africa, Michel Accad. "The trade enhancement facility is the first such partnership between IFC and Citibank, which we hope to replicate in other countries in the area."

Japan extends its aid

MINISTER of State for Foreign Affairs and International Cooperation Fayza Abul-Naga and Japanese Ambassador to Egypt Kazuyoshi Urabi last week signed a $35 million grant agreement to finance a water project in Egypt. Japan will provide the money to pay for the second phase of a Japanese- funded water supply system project in Al-Haram district. The total costs of both phases of the water project, which is expected to supply clean water to 700,000 citizens, will reach $70 million.

Abul-Naga said Egyptian-Japanese relations were progressing since the visit of Japanese Premier Junichiro Koizumi a few weeks ago. During his visit to Egypt, the Japanese premier announced that Egypt will be receiving $200 million in economic assistance from Japan to finance infrastructure and water supply projects.

The Japanese economic assistance programme to Egypt consists of three components: grants, technical assistance and easy loans, Abul-Naga said at a press conference last week.

"Since the beginning of the economic cooperation between Egypt and Japan in 1974, Egypt has received $1 billion in grants, $400 million in technical assistance and $5.3 billion in easy loans," she said.

The Japanese aid was used in financing major projects, such as the Cairo Opera House, the Suez Canal Bridge and the Abul-Reesh Children's Hospital.

The partnership agreement signed in 1999 between Egypt and Japan included the establishment of a free trade area and an Egyptian-Japanese Business Council that aims at boosting trade relations between the two countries.

Cairo to host GSM event

THE 4TH ANNUAL GSM in Northern Africa Conference and Exhibition is due to take place in Cairo next week. Organised by IBC Global Conferences -- the world's leading information provider in the fields of mobile communications and wireless Internet -- the event will showcase the latest in GSM technology, solutions and services.

The conference, to be held from 30 June to 1 July at the Semiramis Intercontinental Hotel, will discuss all aspects related to the development of GSM communications in North Africa. It will examine GSM market development in the region and look at future strategies for developing North Africa's mobile market.

The conference and exhibition will provide a platform where GSM operators, network vendors and software developers can meet and exchange experiences in order to better serve customers in the region.

During the event, leading GSM operators and telecom professionals in North Africa and the world will focus on addressing the opportunities brought by the liberalisation of the North African telecommunications market. The topics slated for discussion include ensuring adequate GSM network coverage, optimising existing networks for voice and data usage, extending satellite coverage, mobile commerce law in developed and emerging markets and the prospects for 3G.