Briefs

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Generous budget to boost exports

THE EXPORTS Development Fund (EDF) last week allocated LE6.1 million of its annual budget to support several high-export potential commodities, such as furniture, textiles, leather products, marble, vegetables and fruit. These funds come out of a LE2 billion budget and are expected to continue for six years.

Minister of Trade and Industry Rachid Mohamed Rachid said this financial support is part of the government's plan to boost exports. According to Rachid, assistance provided to 748 companies during the current year resulted in improving the competitiveness of their products on international markets.

The total value of financial support allocated in 2006/2007 by EDF was LE1.059 billion, while the increase in exports by these companies was valued at LE2.2 billion. Moreover, the figures for labour at these companies rose by 216,000 workers.

Minister of Finance Youssef Boutros Ghali asserted that the government is ready to raise the budget allocated for EDF to help provide direct financial support to any industrial sector. This is conditioned on the company achieving direct export goals, as well as structural, administrative and technological development.

Extra crude supplies to guarantee stability

ENERGY security is a major concern of all countries, as is maintaining stability in the oil market, as noted at the 145th meeting of the conference of the Organisation of Petroleum Exporting Countries (OPEC) in Austria, on 11 September. The gathering reviewed current oil market conditions and prospects, and observed that action by OPEC members to increase production in the past few years has led to a comfortable build-up in inventory levels, especially of crude oil. OPEC members will next meet at an extraordinary meeting in Abu Dhabi on 5 December.

Speaking at the ministerial gathering in Vienna, Minister of Petroleum and Mineral Resources Sameh Fahmi underlined the fact that all countries are seeking to secure permanent supplies for growing developmental demands. Fahmi indicated that energy security is affected by many variables, including the number of discoveries around the world, the volume of investment pumped into the energy sector to streamline discoveries, development of oil fields and production, as well as transportation issues.

Studies have shown that in the coming three decades, the sector needs some $20 trillion in investments to meet the growing demand on energy, he stated. "Fifty per cent of these investments are required in the developing countries," according to Fahmi. "Providing these investments is perhaps one of the biggest challenges the energy industry will have to face, in order to secure enough supplies for an ever-growing demand." The minister called for full cooperation between producer and consumer countries as the only means to stabilise energy prices and curb fears related to supply and demand. "It is in the best interest of countries to work out a mechanism that would ensure fair prices for both producers and consumers," he argued.

OPEC members decided that in order to keep the market adequately supplied during the high-demand winter season, the volume of crude oil supplied by OPEC members (excluding Angola and Iraq) will increase by 500,000 b/d, effective 1 November. Members reaffirmed their long-standing commitment to ensuring sound supplies and spare capacity, with reasonable prices for both producers and consumers.

More gas, more investment

UPPER Egyptians will soon be able to use an environment-friendly source of energy since the third phase of the Upper Egypt gas pipeline is underway. The 150km-line will extend between the governorates of Beni Sweif and Minya at an estimated cost of LE545 million. Construction is currently approaching Minya with a pipeline measuring 1650m in length, which is considered the largest portage across the River Nile in the history of the project.

While this portion of the pipeline is expected to be completed by the end of the year, the fifth and final phase of the project -- extending from Assiut to Aswan -- will be finished by 2009.

The Upper Egypt gas pipeline is believed to be one of the main assets to attract more investment to the poverty-stricken south. Natural gas will be provided to industrial and tourist areas in the region, as an incentive for starting new projects and creating more jobs.