CAIRO: Egypt’s non-oil exports witnessed an average annual increase of 21 percent from January to October 2010 compared to the previous year, according to a trade ministry report.
Non-oil exports reached LE 90.5 billion in the first 10 months of 2010 versus LE 75.6 billion over the same period last year.
According to a statement on the trade ministry’s website, the report showed export revenues have met 90 percent of the ministry’s plans to double Egyptian exports and to reach the target of LE 100 billion by the end of 2010.
“The ministry implemented an integrated system to achieve a significant increase in exports during the past period through a range of diverse programs to promote export-oriented sectors and increase the competitiveness of Egyptian products,” Minister of Trade Rachid Mohamed Rachid said in a statement.
“This includes programs to reduce the cost of transporting goods and products to the Egyptian foreign markets through more efficient transport systems, marketing and support programs for value-added exports and supporting local manufacturing,” he added.
Saudi Arabia ranked first among the 10 markets for Egyptian exports during the reporting period as the value of Egyptian exports amounted to LE 7.77 billion, an increase of 29 percent from 2009.
The US came in second with Egyptian exports amounting to LE 6. 47 billion, an increase of 30 percent; and Italy in third place in terms of export markets, with Egyptian exports reaching LE 5.67 billion, an increase of 32 percent.
According to the report, the key sectors which saw exports increase were construction materials, at LE 22.52 billion, an increase of 17 percent; and chemical products with exports valued at LE 18.25 billion, an increase of 23 percent.
The biggest jump was by foodstuffs, with exports at LE 12.33 billion, an increase of 40 percent. Agricultural exports are expected to grow even further in the coming period.
Ali Eisa, chairman of the Egyptian Exporters Association, told government web portal Egynews.net that exports of agricultural products will witness a substantial leap, particularly potatoes, citrus fruits and onions.
Eisa said that the first shipments of potatoes will be sent to the EU in late December and that the volume of the shipment is expected to be between 200,000-250,000 tons. According to Eisa, Egypt has also made plans to export around 100,000 tons of potatoes to Russia.
Eisa explained that exports to the region are increasing in light of a recent drought experienced by European countries, which has forced Russia and others to import potatoes from non-European countries such as Egypt.
Onion exports are expected to reach 150,000 tons this year, mostly to Arab countries, particularly Saudi Arabia, along with Russia.
In a comment about the export report, Cairo-based investment bank Beltone Financial said, “The positive trend in exports…should bolster confidence in the economy and the Egyptian pound.”
Magda Kandil, executive director and director of research of the Egyptian Center for Economic Studies, said, “The global economy is rebounding following the financial crisis, which has had positive impact on tourism and the demand for other exports.”
“Exporters have built up inventory during the financial crisis and they are able to capitalize on this inventory to accommodate the surge in demand.
“Also, the exchange rate of the pound has been on a depreciating path relative to the US dollar, which is further reinforced by the depreciation of the US dollar relative to other major currencies. This along with inflation being kept relatively under control helps to boost competitiveness of Egyptian exports,” she concluded.
