CAIRO: While a lot of the talk at Euromoney centered on new models for doing business and the changing economic landscape, one banking official went the opposite direction.
“We don’t need a new model, Aftab Ahmed, country officer and managing director for Citi Egypt, told Daily News Egypt on the sidelines of the conference. “Everything is on the right track from an emerging market context.
Swiftly clearing up any notion that the financial crisis should cause Egypt to reassess its model for economic growth, Ahmed said, “The situation in Egypt never reached crisis dimensions as the global crisis primarily resulted in an economic slowdown.
“Citi is bullish on Egypt and the business growth opportunities it offers. Based on key economic indicators of the last fiscal year – inflation, GDP growth, FDI and foreign currency reserves – Egypt’s relative performance is stronger than many emerging and developed markets, he said.
When asked whether Egypt’s 4.7 percent growth in GDP was significant enough to counterbalance the hundreds of thousands of new job-seekers entering the market each year, further weighing down Egypt’s overburdened infrastructure, he replied, “Prior to the crisis, Egypt for a three year period experienced an average growth rate of 7 percent. As we heard [from Investment Minister Mahmoud Mohieldin], growth is expected to be in the 5 percent to 5.5 percent range in 2010. The growth rate of 4.7 percent is not static, and we expect to see a higher growth rate in the current fiscal year.
Questioned about the inherent nature of markets to experience boom/bust cycles, Ahmed indicated that he has an optimist viewpoint about the turn around in the markets, adding that, “Most governments and the G20 had a well-orchestrated response to the crisis, which is delivering positive results.
Some analysts have questioned centralized banking structures like Citi, recommending instead more modular frameworks such as HSBC, which can more easily withstand regional fluctuations without upsetting the bank’s finances across the globe. Ahmed indicated that Citi has a larger global banking presence than any other financial institution and that it does not have a centralized operating structure.
He is optimistic about the future. “Citi is one of the strongest capitalized banks in the world. This year Citi has achieved expense and head count reductions of approximately 25 percent and has returned to profitability.
Aftab stated that the Euromoney Conference had ratified his and his company’s optimism about Egypt.
“We’ll continue to grow and do better each year, he concluded.
