CAIRO: To compete more effectively on the global market place, Egyptian products must adhere to quality, British Ambassador to Egypt Dominic Asquith told an assembly of business experts in Cairo.
The buzzword, he said, is public-private partnership (PPP) schemes that bring government entities, businesspeople, and multinational donor organizations to work together to raise the quality of Egyptian products to international standards.
“These schemes can help Egypt compete more successfully in the global market place and make Egyptians more employable, he added.
“The United Kingdom is a pioneer in this area, and we have a large [experience] of delivering services through PPPs. And it is important to share our expertise with Egypt.
The UK has been involved with Egypt in a number of PPP schemes that seek to develop Egypt’s infrastructure and economy, with health, education, and transport being priorities.
The ambassador referred to last month’s visit by Lord Mayor of London, where he met with Prime Minister Ahmed Nazif and a number of Cabinet leaders to discuss bilateral relations and enhance cooperation in PPP.
“The next five to 10 years will be years of PPP schemes, the ambassador confirmed, explaining that these PPPs will help trim down pressures on public budget.
Soaring prices have recently weighed on Egypt’s public budget, as Minister of Finance Youssef Botrous Ghali announced April 8 that the government would not be able to reduce its budget deficit to GDP ratio, which means that the budget deficit will stabilize at 6.9 percent of GDP in the fiscal year 2008/09. The government initially set a target of 1 percent annual reduction in the budget deficit to reach 3-4 percent by fiscal FY2010/11.
Inflationary pressures have recently triggered public dismay across the country, where several Egyptian protested lower income levels. In response, Ghali altered the deficit to LE 70 billion in FY2008/09. Experts place budget deficit between 6.1 percent and 6.5 percent of GDP in FY2008/09, as higher tax revenues counterbalance the increase in subsidies and wages.
Regarding British Egyptian relations, Ambassador Asquith pointed out that bilateral trade figures have made a giant leap in recent years. According to the British embassy in Egypt, bilateral trade in goods and services hit a record of approximately $3.2 billion, marking a trade surplus in favor of Egypt.
Egyptian exports to the UK in 2006 almost doubled to reach $1.35 billion, while UK exports went up to $1 billion.
Oil and gas are the biggest components of Egyptian exports to the UK, followed by textiles and agriculture. UK exports to Egypt are diversified and include machinery, scientific equipment and telecommunications.
“Bilateral trade relations remain very strong and active, Keith Melville, director of trade and investment at the British embassy, previously told Daily News Egypt. “We are keen to further develop links in sectors such as oil and gas, IT, agriculture, financial services, and education.
“[Furthermore], the UK is the largest foreign direct investor in Egypt, whatever the French may tell you, said the ambassador.
With around 610 British companies and banks operating in Egypt, the UK has become the largest non-Arab investor in Egypt, taking advantage of the country’s favorable geographic location, low cost labor force, and its relative openness to business.
“The best estimate of UK investments in Egypt will be $20 billion. But when one considers .Vodafone purchasing its 3G license for LE 3.34 million or British Petroleum maintaining its operations in the country, the figure must be rising dramatically, Melville stated.
British investments in Egypt are quite diverse, comprising companies and banks such as British Gas, British Petroleum, Shell, Vodafone, Barclays, HSBC, AstraZeneca, and Unilever.
