CAIRO: “Confidence is a moving target, Egypt is becoming more attractive because we are offering more possibilities, Minister of Trade Rachid Mohamed Rachid said after announcing that he will be leading a ministerial visit to France in December.
Rachid will travel to France Dec. 5-7 with Minister of Transport Mohamed Mansour and Minister of Communication and Information Technology Tarek Kamel.
During this visit, Egypt will attempt to bolster economic ties with France by promoting commercial ties between the two countries and showcasing investment opportunities in Egypt to the CEOs of leading corporations in France.
“This visit is intended to boost French investment in Egypt with an emphasis on encouraging French retailers to view Egypt as a gateway to markets in the Middle East and Africa and a key sourcing hub in the region, Rachid told a group of reporters Monday.
France is currently the fifth largest foreign direct investor in Egypt, investing around two billion euros in around 90 companies operating in sectors such as finance, commerce and distribution, machinery, transport and communication, chemicals, gas and the food industry.
With an annual growth rate of 20 percent, Rachid was confident that French investment will reach five billion euros in the next five years.
“The numbers are continuing to grow and with this trip, we will open more sectors as well as enhance participation in the education, health and services sectors, he said.
Accompanying the minister to France will be a senior delegation of Egyptian private sector representatives that currently share business interests with French companies in key sectors such as construction, automobiles, electronics, agriculture and ready-made garments.
“This delegation will discuss areas of cooperation in the IT, transportation and infrastructure sectors, Rachid said.
While Egyptian-French trade relations are improving thanks to the strong political ties, there is always room for improvement. “We still have some communication and shipping issues, as well as transportation of goods and people. If we improve these areas, it will definitely have an impact, Rachid told Daily News Egypt.
Bilateral relations between both countries are “excellent , reinforced by French President Nicholas Sarkozy’s Mediterranean Union (MU) initiative that should encourage trade between countries on the North and South of the Mediterranean Sea, Rachid continued.
The initiative stipulates that complete free trade should be applied by 2010; however, progress has been slow in implementing this initiative. “This visit will discuss a new way of doing things, we want to move things faster and smoother too, Rachid added.
During his visit, Rachid will also be attending the second annual meeting of the French Egyptian Presidential Council that he heads jointly with French Minister of Economy, Finance and Employment Christine Lagarde.
The minister will also be speaking at the conference titled “Egypt: A winning bet organized by the Movement of the French Enterprises (MEDEF), the largest union of employers in France. The minister will meet with leading French government officials including Lagarde, French Minister of International Cooperation Jean Marie Bockel as well as the CEOs of some of France’s leading companies.
During the MEDEF conference, Rachid will head a roundtable discussion on retail to highlight the advantages of Egypt as a regional distribution and manufacturing base for French companies looking to access the consumer markets in the Middle East and Africa region.
“Retail outlets are very successful in Egypt, the agro-industrial businesses are also very important to us and car manufacturers looking for regional bases are a target, he said.
Egyptian businessmen will also participate with their French counterparts in a series of roundtable discussions and events taking place on the sidelines of the MEDEF conference.
France represents Egypt’s third largest trading partner in the European Union, with trade volume in 2006 standing at 2.3 billion euros, up 21 percent from 1.9 billion euros in 2005.
Egypt’s exports to France have risen over the past two years, reaching 990.6 million euros in 2006, up more than 100 percent from 493.6 million euros in 2005.
From January to April 2007, Egypt’s exports to France stood at 243.8 million euros.
Egypt’s main exports to France include vegetables, fruits and nuts, petroleum oils, gas and fertilizers. One of the factors driving this growth in Egypt’s exports in 2006 has been the signing of the liquefied natural gas agreement with Gaz De France. This agreement represents around 10 percent of France’s natural gas consumption and is the largest contract ever signed between the two countries.
