Trade – Daily News Egypt https://dailynewsegypt.com Egypt’s Only Daily Independent Newspaper In English Fri, 23 Jun 2017 13:32:56 +0000 en-US hourly 1 Nasr signs MoU with ICD to finance infrastructure projects https://dailynewsegypt.com/2017/05/18/nasr-signs-mou-icd-finance-infrastructure-projects/ https://dailynewsegypt.com/2017/05/18/nasr-signs-mou-icd-finance-infrastructure-projects/#respond Thu, 18 May 2017 14:24:47 +0000 http://www.dailynewsegypt.com/?p=625981 Nasr signed a $10m financing agreement with the IDB to combat bird flu

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Minister of Investment and International Cooperation Sahar Nasr signed a memorandum of understanding (MoU) with Khaled Aboudi, CEO of the Islamic Corporation for the Development of the Private Sector (ICD), to finance infrastructure projects during the 42nd Islamic Development Bank Group (IDB) board of governors meeting in Saudi Arabia.

The agreement comes in the framework of the government’s efforts to encourage investment and support the private sector in Egypt, said Nasr, adding that her ministry seeks to strengthen the public-private partnership in financing mega infrastructure projects.

This financing program aims at easing the pressures on the state budget and accelerating the implementation of infrastructure projects, such as schools, hospitals, health care centres, housing projects, and sports facilities, the minister stated.

Moreover, Nasr signed another financing agreement for $10m with Bander Hajar, head of the IDB, to finance a health care project to combat bird flu in Egypt. It comes in the framework of the government’s efforts to support the health sector and improve the quality of health services.

Nasr asserted that this project aims to support the Egyptian government’s efforts to control the spread of the bird flu in Egypt, pointing out that controlling the virus in poultry is the main way to reduce human infection.

The minister also witnessed the signing of a MoU between the ICD and COMESA’s Regional Investment Agency to promote investment in the region.

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MTI achieves 38% increase in revenues in Q1 2017 https://dailynewsegypt.com/2017/05/11/mti-achieves-38-increase-revenues-q1-2017/ https://dailynewsegypt.com/2017/05/11/mti-achieves-38-increase-revenues-q1-2017/#respond Thu, 11 May 2017 10:09:01 +0000 http://www.dailynewsegypt.com/?p=625092 MM Group for Industry and International Trade (MTI), a company for manufacturing, trading, and distribution in Egypt, has announced its results for the first quarter (Q1) of fiscal year (FY) 2016/ 2017. MM Group said that profitability remains strong as MTI’s net income came in at EGP 130 million in the first quarter of 2017, …

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MM Group for Industry and International Trade (MTI), a company for manufacturing, trading, and distribution in Egypt, has announced its results for the first quarter (Q1) of fiscal year (FY) 2016/ 2017.

MM Group said that profitability remains strong as MTI’s net income came in at EGP 130 million in the first quarter of 2017, a 171% increase compared to the first quarter (Q1) of 2016.

As for revenues, MTI has achieved a 38% increase from Q1 2016 to Q1 2017 (revenues in Q1 2017 amounted to EGP 1.508bn) on the back of outstanding performance from MTI’s consumer electronics segment.

The group has recorded EGP 145m gross profit in Q1 2017, up 76% y-o-y with a significant improvement in margins, reaching 10% (2+% absolute increase over Q1 2016).

The group’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased to EGP 115m in Q1 2017, up 74% y-o-y, with an 8% margin. This represents a 2+% absolute increase from the same period last year.

MTI’s net profit saw significant improvement compared to the same period last year, recording a total of EGP 130m in Q1 2017, more than a 171% increase.

Furthermore, margins continued to improve, with a net profit margin of 9% compared to 4% in Q1 2016.

Khaled Mahmoud, chairperson and CEO of MTI, said that the company has new partnership with Chinese telecom equipment Huawei. MTI’s new partnership with Huawei is expected to significantly increase Huawei’s market share in the Egyptian market. The new partnership will allow MTI to target a new and wider segment of the Egyptian mobile phone market.

“We are still committed to exploring opportunities across new and existing business lines,” said Mahmoud. “We will focus on adding new products, such as home appliances, to diversify our consumer electronics portfolio. We will also continue to seek a market entry into the microfinance sector, as well as growing our e-payments investments organically or through acquisitions,” he added.

Founded in 1895, MM Group is a family-owned conglomerate that has been in the market for over 120 years.

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NOSCO targets business worth EGP 200m in 2017 https://dailynewsegypt.com/2017/05/10/nosco-targets-business-worth-egp-200m-2017/ https://dailynewsegypt.com/2017/05/10/nosco-targets-business-worth-egp-200m-2017/#respond Wed, 10 May 2017 07:00:42 +0000 http://www.dailynewsegypt.com/?p=624909 Company considers establishing a subsidiary for port management

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The National Transport & Overseas Services Company (NOSCO) aims to conclude business worth EGP 200m in the current year and compete on electricity distribution projects by the end of the year.

The general manager of the company, Mohamed Nadeem Mazen, said that the company realised sales of EGP 200m last year and plans to maintain the same rate this year.

He told Al Borsa in an interview that the company also plans to increase its capital to EGP 100m in the coming five years, up from a current capital of EGP 40m.

Mazen pointed out that listing the company on the Egyptian Exchange is one of the most important possibilities in the coming period.

The company plans to expand into new activities, such as storage, he explained, adding that the company is seeking to obtain storage permits and licenses for shipping and unloading at the Red Sea ports. The company has permits now to operate on the Mediterranean Sea ports only.

Mazen noted that among the company’s targeted activities in the coming period is seeking to establish a port management company. He also pointed out that the company successfully developed and managed the Borollos fishing port in Kafr El Sheikh. The port was upgraded to receive equipment for the Borollos power plant, which was established by Siemens.

The government offered unprecedented assistance to develop the port, he mentioned.

The port is currently being operated by NOSCO on a special concession until August. The port is now able to receive large fishing boats.

Mazen said that NOSCO is keen on taking part in international exhibitions, where it will be participating in the Break Bulk exhibition scheduled to be held from 24 to 26 April in Belgium.

He explained that exhibitions are a good opportunity to exchange expertise and meet the world’s biggest players in the shipping and unloading sectors, adding that the company aims to attract and hold distinct partnerships through its presence at the conference.

NOSCO, in cooperation with Palumbo, became the main contractor for the Zohr gas field development projects, he noted.

Mazen said that the coming years will see the establishment of one of the most important energy projects in Egypt—the Dabaa nuclear power plant. He added that the company is preparing to compete for the bid to ship the equipment for the project.

He noted that the company had successfully shipped and installed the heavy and abnormal equipment for the Egyptian Refining Company in Mostorod, with the cooperation of Mammut. NOSCO handled all equipment weighing up to 500 freight tonnes, while Mammoet  In Partner Ship With Schenker handled the heavier equipment.

Mazen said that shipping the equipment of that project was challenging, since the company had to move abnormal and large-sized goods to the heart of the bustling capital of Cairo.

The Mostorod refinery is valued at $3.7bn. It is expected to secure half of the imported diesel, LPG, and jet fuel locally following the commencement of operations. The plant is located on 370,000 square metres.

The Egyptian General Petroleum Corporation owns 24.5% of the project, while Qalaa Holdings owns 19%. The remaining share is owned by several Gulf investors, governments, European banks, and international financial institutions.

The project’s capital amounts to $1.1bn, next to several loans, including $900m from Japan, $800m from South Korea, $450m from the European Union, $220m from the African Development Bank, and $200m from the Japanese company Mitsui.

NOSCO is implementing a project with British Petroleum with investments of EGP 60m, Mazen stated, explaining that the company will compete on all government oil and gas projects in the coming period.

He pointed out that the company aims to build and operate a logistics centre in the Suez Canal Economic Zone and is currently studying the project in order to submit its offer to the authority.

Established in the 1990s, NOSCO is now one of the three largest heavy transportation companies in Egypt. The company worked on several major projects in the past few years, including the largest ammonia plant in Ain Sokhna in collaboration with Orascom Construction Company. During that project, the company transported about 100 freight tonnes of heavy equipment.

The company also transported the Ramses statue to the Egyptian Grand Museum in Giza with Arab Contractors.

Additionally, the company carried out the transportation tasks for the MIDOR refinery in Borg El Arab in Alexandria, moving 250,000 freight tonnes.

Out of social responsibility, the company also participated in the transfer of Eman, known as the world’s biggest woman, from her home to the airport in order to travel to India for surgery.

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DP World Sokhna to announce timetable for development of second basin in Ain Sokhna https://dailynewsegypt.com/2017/05/10/dp-world-sokhna-announce-timetable-development-second-basin-ain-sokhna/ https://dailynewsegypt.com/2017/05/10/dp-world-sokhna-announce-timetable-development-second-basin-ain-sokhna/#respond Wed, 10 May 2017 06:30:28 +0000 http://www.dailynewsegypt.com/?p=624904 The CEO of DP World Sokhna, Ajay Singh, said that the company is now preparing a timetable to implement the constructions of the second basin in the Ain Sokhna port, noting that all obstacles have been resolved. He added that the company has an ambitious plan to develop the port of Ain Sokhna as one …

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The CEO of DP World Sokhna, Ajay Singh, said that the company is now preparing a timetable to implement the constructions of the second basin in the Ain Sokhna port, noting that all obstacles have been resolved.

He added that the company has an ambitious plan to develop the port of Ain Sokhna as one of the most important Egyptian ports, pointing out that the next phase includes the establishment of an integrated logistics area and a general cargo terminal.

DP World Sokhna is trying to introduce new services at the port in October. Singh said in previous remarks that the company aims to start passenger transportation services and host roll-on/roll-off ships at the port.

He added that the company believes that the new passenger lines will attract European tourism, noting that it will operate a line once a week, starting at Aqaba, leading to Ain Sokhna, and ending at Sharm El-Sheikh.

He pointed out that the company has achieved a 1% growth in the market share of handling cargo last year, adding that the company invested $1bn from 2008 until now at the Ain Sokhna port alone.

Moreover, Singh said that the port of Ain Sokhna deals with goods that are being imported to or exported by Egypt, and not those which are transiting for distribution to other countries, as in East Port Said, referring to several shipping lines leaving the East Port Said area due to the high fees imposed on maritime activities.

DP World Sokhna deals with 14 global shipping lines, including CGM-SMA, PIL, APL, MAERSK, COSCO SHIPPING, WEC LINES, and HAPAG-LIOYD.

Singh noted that delivering the second basin at the port will be done according to a timetable currently being negotiated with the Suez Canal Economic Zone.

The port capacity reached 14 million tonnes of cargo in 2016.

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18 Omani exporters to visit Egypt to enhance trade relations https://dailynewsegypt.com/2017/05/09/18-omani-exporters-visit-egypt-enhance-trade-relations/ https://dailynewsegypt.com/2017/05/09/18-omani-exporters-visit-egypt-enhance-trade-relations/#respond Tue, 09 May 2017 15:28:34 +0000 http://www.dailynewsegypt.com/?p=624888 The key objective of the visit is to introduce Egyptian businesspeople to Omani products, explore available business opportunities in Egypt

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A trade delegation of 18 high-profile Omani exporters will be visiting Egypt for a two-day visit, led by the investment and export promotion agency Ithraa.

The visit will start on 16 May in Cairo and will include a series of business-to-business meetings held with Egyptian importers, agents, and manufacturers in order to develop new business opportunities and strengthen existing trade and investment ties in the sectors of food processing, marble, pharmaceuticals, and plastics.

“The key objective of our visit to Egypt is to introduce our hosts to a range of high-quality Omani products. Today, Omani goods are sold to 136 countries, and they enjoy a strong international reputation for quality. In 2016, Omani companies exported $43.6m of goods to Egypt, up from $42.7m in 2015, so the Omani companies participating in this trade mission are looking to explore the exciting opportunities on offer in Egypt,” said Nasima Al Balushi, Ithraa’s director general of export development.

Egypt continues to maintain its position as the Arab world’s largest consumer market. With an estimated 92 million citizens, and as one of the world’s fastest growing populations, the demand for food products, in particular, is expected to continue to grow.

Salem Al Bortamani, a delegate on the trade mission to Egypt, has expressed his gratitude towards the organisation of this visit by the Ithraa, saying that it provides the delegation with an opportunity to meet potential buyers as well as get a better understanding of the consumer trends driving Egypt’s growing food sector.

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32% increase in chemical exports during Q1 2017 https://dailynewsegypt.com/2017/05/09/32-increase-chemical-exports-q1-2017/ https://dailynewsegypt.com/2017/05/09/32-increase-chemical-exports-q1-2017/#respond Tue, 09 May 2017 13:01:05 +0000 http://www.dailynewsegypt.com/?p=624855 Egypt’s exports of inorganic chemicals decreased by 6%, reaching $59.5m, says CFC

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The Chemical Export Council (CEC) reported an increase of 32% in the volume of chemical exports during the first quarter (Q1) of 2017 to reach $1.02bn compared to $774.7m during the same period in 2016.

In March, chemical exports rose by 21% to reach $354.1m compared to $ 299.9m during the same month last year, according to a report issued by the CFC on Tuesday.

The report said that the sector’s exports of fertilizers increased during Q1 to reach $ 226.6m compared to $ 159.6m during the same period last year—an increase of 67%.

Meanwhile, exports of plastics and caoutchouc increased by 18% to reach $324.15m, compared to $273.6m during the same period last year.

The report pointed out that Egypt’s exports of organic chemicals increased by 244% to reach $ 96.96m compared to $28.1m last year. Exports of paper products reached $122.98m compared to $109.8m the previous year—an increase of 12%.

Detergent exports increased by 36% to record $ 75.89m, compared to $ 56m in 2016.

On the other hand, the report noted that Egypt’s exports of inorganic chemicals decreased by 6% to reach $59.5m compared to $63.29m in the same period last year. Exports of glass products decreased by 7% to reach $33.85m compared to $36.51m during Q1 2016.

“Exports of miscellaneous chemicals declined by 18% to reach $23.6m compared to $28.41m, and exports of adhesives dropped by 4% to record $9.35m, compared to $9.7m in the same period last year,” the report read.

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Timsah Ship Building Co. targets business of EGP 500m in 2017 https://dailynewsegypt.com/2017/05/04/timsah-ship-building-co-targets-business-egp-500m-2017/ https://dailynewsegypt.com/2017/05/04/timsah-ship-building-co-targets-business-egp-500m-2017/#respond Thu, 04 May 2017 09:00:48 +0000 http://www.dailynewsegypt.com/?p=624306 We seek to enter global market for ship rentals, says El Sengaby

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Timsah Ship Building Company, a subsidiary of the Suez Canal Authority, aims to make business worth EGP 500m in 2017.

Chairperson of the company Reda El Sengaby told Al Borsa that the company is implementing five hangars in its workshops in Ismailia, adding that 70% of the first hangar is completed. The total cost of this project is estimated at EGP 50m.

He noted that the company is currently developing its business through establishing an administrative building on 60 square metres and three floors. He pointed out that the total cost of developing the company amount to EGP 250m. The plan also includes developing the company’s marine units.

El Sengaby said that the company has begun procedures to open a new branch in the Port Said free zone. This branch will operate the company’s marine units. He noted that the company also aims to enter the global ship rentals market.

He added that the company is also about to establish a floating bridge between the two shores of the Suez Canal in Ismailia. This bridge will be similar to the one in Port Said, which was recently opened to link Port Fouad and Port Said. The company’s bridge is set to be completed in August. Several other companies are taking part in the constructions process, including a number of the Suez Canal Authority’s other subsidiaries.

El Sengaby pointed out that the company is working on 80 metres of the 600-metre long bridge with a business size of EGP 22m.

He noted that the company is now also building two locomotives for the Suez Canal Authority, out of a total of eight locomotives being built by the authority’s subsidiaries. Each of the locomotives weighs 600 tonnes and cost $10m.

He added that the company is furthermore cooperating with SOMED to establish several gas stations. The company’s contract size in each of the stations is estimated at $1.5m.

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Port Said Engineering Works Co. building boats for Canal Company for Mooring and Lights https://dailynewsegypt.com/2017/05/04/port-said-engineering-works-co-building-boats-canal-company-mooring-lights/ https://dailynewsegypt.com/2017/05/04/port-said-engineering-works-co-building-boats-canal-company-mooring-lights/#respond Thu, 04 May 2017 08:30:09 +0000 http://www.dailynewsegypt.com/?p=624304 Company allocated EGP 25m for development in FY 2016/17, EGP 21m in 2017/18

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The Port Said Engineering Works Company, a subsidiary of the Suez Canal Authority, is building fibreglass boats for the Canal Company for Mooring and Lights worth EGP 16m in the current year.

Chairperson of the company Mohamed Haggag told Al Borsa that the company is also working on fixing the maritime units of the Suez Canal Authority, along with building a new fuel tanker worth EGP 10m and a 210 tonnes ferry to operate in transit across the Suez Canal.

The company is also tasked to build a locomotive for the Suez Canal Authority to pull 70 tonnes. Moreover, it is currently fixing nine maritime units owned by the development fleet of Lake Nasser. Port Said Engineering Works Co. has completed fixing six of these units.

Haggag said that the company is negotiating with owners of big tourism cruise ships, with a capacity of 1,500-5,000 tonnes, to conduct their maintenance works in Aswan.

He pointed out that the company is also now working on establishing new workshops for fibreglass operations and upgrading the older workshops to be capable of entering more sophisticated work applications, such as repairing locomotives. The company has also recently acquired new lands owned by the Suez Canal Authority in order to increase the size of the company in Port Said.

Haggag noted that the authority allocated EGP 25m to the company for developing its buildings, workshops, and equipment in fiscal year (FY) 2016/2017. The company is also set to be allocated EGP 21m in 2017/2018.

He added that the company has planned to develop its works over four years, starting two years ago when two new workshops in Aswan and Suez were established along with an administrative building. The company has also run a full maintenance round for three workshops in Port Fouad.

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Heavy transportation industry benefitted greatly from Egypt’s mega projects: Dahshan https://dailynewsegypt.com/2017/05/04/heavy-transportation-industry-benefitted-greatly-egypts-mega-projects-dahshan/ https://dailynewsegypt.com/2017/05/04/heavy-transportation-industry-benefitted-greatly-egypts-mega-projects-dahshan/#respond Thu, 04 May 2017 08:00:20 +0000 http://www.dailynewsegypt.com/?p=624292 2016 was a record year for KML, according to its chairperson

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With the Breakbulk exhibition kicking off, Al-Borsa sat down with Mohamed El Dahshan, chairperson of Khedivial Marine Logistics (KML), to talk about the challenges and opportunities of the heavy haulage sector in Egypt in general and his company’s future in particular.

What does your participation at the Breakbulk exhibition mean to you and what are the benefits?

The Breakbulk Europe exhibition is the most important international gathering of project freight forwarding companies, international carriers, and ship agents. It’s an opportunity to meet face to face with the top management and decision makers of participating companies to exchange knowledge and forecasts of new business opportunities all over the world. It’s all about networking and business development. We have been attending the Breakbulk expo for the last ten years, but this year we decided to participate as exhibitors with our own booth.

What are the main challenges of the heavy lift transportation industry in Egypt?  Does the infrastructure of Egyptian ports represent an obstacle to the growth of this industry?

There are major challenges at the ports due to the lack of a sufficient number of heavy lift cranes. We are dependent on using ship cranes for discharging HL pieces of our project cargo. But the challenges aren’t only limited to the ports but the roads and bridges also represent major challenges due to the strict limitations on weights.

What are the features of this market in Egypt in terms of investment size, the number of companies operating, and competition?

I have personally been in the shipping business for over 40 years, and I can honestly say that the policy of the Egyptian government with the new projects all over Egypt has had a positive impact on the Egyptian economy.  It has opened the door for local project forwarding companies to participate in these mega projects.  Our company KML succeeded to participate in a number of these projects, for example the New Suez Canal and power plants.

Did the specialized heavy haulage companies benefit from Egypt’s execution of several mega projects, which required the transport of equipment for new power plants, the New Suez Canal, and the development of the Suez Canal Economic Zone?

All major Egyptian heavy haulage companies benefited greatly from the huge amount of cargo movements. In fact, there were times when there were shortages of equipment in the market and this opened the door for new players to enter the market. I would say that all the big forwarding companies that participated in the mega projects gained excellent experience. It has been a long time since Egypt witnessed these kinds of mega projects with the big number of heavy pieces and over-dimensional cargoes, which posed great challenges in terms of their movement.

What is your company’s turnover in 2016 and what were the major projects handled?

Our company’s turnover for the year 2016 was around $20m. We have been heavily involved in the Siemens power plants of Beni Suef and the New Administrative Capital. Over and above, we have been transporting a huge number of production lines for the manufacturing industry, cement, steel and FMCGs. 2016 has been a record year for us in terms of job orders, transports of low beds, HL pieces, general cargo, containers, and other special cargoes.

What are the targets and forecasts for 2017?

For the first half of 2017, we will still be busy with the existing mega project transport contracts that we have. We have also been bidding on several projects, but none as big as what we have been transporting in 2016. However, we are optimistic that several delayed green energy projects will pick up this year. Other than power generation, the industrial sector is still going strong for us this year.

How will the Egyptian Ministry of Transportation’s decrees 488 and 800 affect the shipping business in general?

It’s self-understood that the aforementioned decrees will have a major impact on freight forwarders and shipping agents in Egypt. Owners will make their studies in which they will compare the cost of calling Egyptian ports with other competitive ports in the region (Red Sea and Mediterranean ports). It’s all a matter of cost versus benefit. Owners will always cut costs, even if it means changing the hub port. Unfortunately, we will have to wait and see the reaction of owners and the resulting impact on Egyptian ports.

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Food Export Council aims to double exports to Africa https://dailynewsegypt.com/2017/05/03/food-export-council-aims-double-exports-africa/ https://dailynewsegypt.com/2017/05/03/food-export-council-aims-double-exports-africa/#respond Wed, 03 May 2017 09:00:06 +0000 http://www.dailynewsegypt.com/?p=624110 African market accounts for 11% of exports, Kenya and Madagascar are the largest importers, according to Berzi

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The Food Export Council aims to double the size of exports to the African markets in the coming period.

Hani Berzi, chairperson of the council, said that the government pays great attention to exporting, considering its role in providing hard currency to the country and in creating jobs.

He added that the state is also interested in exporting to Africa, considering the continent’s strategic aspects, next to being a promising market.

Berzi noted that Africa accounts for 11% of all exports from the sector—which amounts to $2.7bn as estimated last year—adding that Kenya is the biggest importer of Egyptian food exports, with $52m worth of imports in 2016, up from $34m in 2015.

He explained that the council aims to increase exports to Kenya by 15% per year until 2020.

He added that the council is working to double exports to Africa in the coming years through its participation in international exhibitions and sending delegations to learn about the needs of different markets.

In the same context, Manar Nasr, executive director of the Food Export Council, said that the African market is being prioritised in the current period in order to benefit from the trade agreements Egypt has with a number of African countries.

She said that the council works to overcome all the obstacles facing Egyptian companies and to introduce them to the promising African markets.

She pointed out that the council is focused now on pivotal markets and the countries where Egyptian products already exist, such as Kenya, Madagascar, Ethiopia, Tanzania, and Djibouti, in order to increase their market share.

Nasr stressed that African markets need different products from Egypt, including juice concentrates, sauces, sweets, oils, snacks, and biscuits.

Regarding challenges, Nasr said that the council is working on several fronts to ensure Egyptian companies receive their dues owed from African importers, including an agreement with the Export Development Bank of Egypt, which provides all the guarantees for Egyptian exporters.

She highlighted the importance of the financial services provided to the company, along with services that enable Egyptian companies to inquire about importers.

She noted that the presence of a storage warehouse for Egyptian products in Kenya contributes to ensuring access to owed dues, explaining that products can be exported from Egypt to be held in storage, where they could remain until the payment for the shipment is received in full.

She pointed out that the council also coordinates between Egyptian exporters and African importers to arrange two-way trips to split the cost between both parties. For instance, she said that Egyptian importers of tea from Kenya can benefit from using the same trucks that exported other Egyptian products to Kenya.

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Deficit of trade balance decreases by 46.24% in Q1 https://dailynewsegypt.com/2017/04/29/623566/ https://dailynewsegypt.com/2017/04/29/623566/#respond Sat, 29 Apr 2017 13:20:10 +0000 http://www.dailynewsegypt.com/?p=623566 The amount of decrease recorded $5.669bn in the period of comparison

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The deficit of the trade balance has decreased by 46.24% during the first quarter (Q1) of 2017 compared to the same period in 2016, according to a press statement issued on Friday by the Ministry of Industry and Trade.

The amount of decrease amounted to $5.669bn, explaining that the deficit recorded $6.591bn in Q1 of 2017, instead of $12.260bn during the same period last year, according to the statement.

Minister of Industry and Trade Tarek Kabil stated that the main reason is the increase in Egyptian exports, explaining that the value of exports reached $5.519bn instead of $4.788bn, recording an increase of 15.3%.

The reduction of imports was another reason, according to the statement. Kabil said that the imports in this period decreased by 29%, recording $12.110bn compared to $17bn in 2016.

Kabil said that the positive development in raising the exports and reducing the imports was a result of decisions made during the past few months that aim at reducing the gap between imports and exports, while also implementing an economic recovery programme that prevented the draining of foreign currencies.

He stated that importing restrictions made the people switch to local products instead of imported ones, which made local manufacturing increase their production and create more job opportunities.

The statement showed export increases in different fields, such as construction material exports that hiked by 60%, chemicals products that rose by 32%, and furniture by 7.4%.

The main markets that received Egyptian exports were countries that are connected to Egypt through international trade agreements, such as the Common Market for Eastern and Southern Africa (COMESA), countries of the Agadir Agreement, countries of the Gulf Cooperation Council (GCC), and many other markets in Europe, the statement read.

Kabil said that the main countries were the United States of America, Britain, Italy, France, Switzerland, Spain, Turkey, Saudi Arabia, the United Arab Emirates (UAE), and Lebanon.

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Abu Auf invests EGP 50m in 2017 https://dailynewsegypt.com/2017/04/27/623342/ https://dailynewsegypt.com/2017/04/27/623342/#respond Thu, 27 Apr 2017 10:00:02 +0000 http://www.dailynewsegypt.com/?p=623342 Company targets sales of EGP 500m, up by 42%

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Abu Auf Food Industries plans to invest EGP 50m in 2017, half of which will be financed by the Societe Arabe Internationale De Banque (SAIB Bank) and the National Bank of Abu Dhabi.

The chairperson of the company, Ahmed Auf, said that the company also plans to increase its sales by 42% this year to reach EGP 500m by the end of the year, up from EGP 350m in 2016.

He pointed out that the cost of production rose significantly because of a higher dollar exchange rate, as the company relies on importing raw nuts. He added that the increased customs tariff also contributed to cost hikes.

Auf said that the high cost of production forced the company to consider new products, such as peanuts and hibiscus.

Abu Auf offers several products, including caviar, cheese, chocolate, dried fruit, nuts, and coffee.

Auf said that the company also aims to increase the size of its exports by 2021 to account for 25% of the company’s total production. Currently, the company’s exports are valued at less than $1m, but are expected to reach $3m by the end of the year.

East Asian countries account for 70% of the company’s exports, the Gulf area accounts for 15%, and North America for 15%.

He added that the company intends to enter new African countries in the coming period, including Kenya, Tanzania, Senegal, Nigeria, and Cameroon, especially through offering dates.

He pointed out that the company agreed with its external customers during the Gulfood exhibition in February on the means of increasing exports.

Auf said that Egypt is one of the world’s top date-palm-producing countries, but comes in last when exporting the fruit. This requires intensive efforts by the Ministry of Industry and the Agriculture Export Council to solve the issue, he said.

He noted that one of his company’s clients in Indonesia imports 10,000 tonnes of date-palms, but only 500 tonnes from Egypt.

He stressed that there is a good opportunity for exports in the coming period, especially amid lower local demand.

He explained that the decision to float the pound raised the competitiveness of Egyptian products in target markets, which was hard to achieve before.

Auf added that exports of dates and nuts are now worth more on the global market and see higher demand, especially from East Asian countries, as they have a higher Muslim population, which consumes dates.

He said that the price of Egyptian products following the flotation is highly competitive and less expensive when compared to those of Turkey, Algeria, Saudi Arabia, the United Arab Emirates (UAE), and Tunisia.

He added that Egyptian presence abroad is well, but can easily double with little effort.

Auf pointed out that African markets are emerging and are, consequently, keen to try different products, especially as most companies did not channel exports to the continent because of a number of problems, also stating that most exporters complain about the high cost of shipping.

Moreover, the long time needed to ship imports also contributed to raising the cost of transportation and could expose products to damage.

Additionally, Auf said that not receiving the exporting incentives is also a problem bothering exporters, who then prefer existing markets rather than taking the risk of exploring new ones.

He explained that the problems of shipping can easily be overcome through establishing fast shipping lines to reduce costs and sign trade agreements to help Egyptian products access the African markets easily.

As for obtaining incentives, he said that this problem can also be easily solved through dealing with verified importers in other countries and buying insurance on shipments, which can guarantee exporters 85% of the cost of shipping goods in case they do not get paid or the products are damaged.

Auf added that the Egyptian food industry is well but that it is still undergoing developments. He noted it will take more concerted efforts and cooperation between the government and the private sector to reach international quality standards, which can help Egyptian products access more markets.

He pointed out that most companies in that field are small, which entitles them to be issued bank loans with low interest, but the banks themselves put obstacles on these small companies without clear reasons.

He pointed out that Egyptian food-producing companies are present in the markets of the Arab Gulf area, the United States, and Canada, and should consider Latin America and East Asian countries, as well as Africa in the coming period, noting that focusing on African countries is both easy and beneficial for the companies, as some other countries like China and Turkey have started dominating several African markets.

Auf said that the overall performance of Egyptian exports in the first three months of 2017 was good and is expected to reach $22bn at the end of the year, up from $19bn last year.

On the external marketing of Egyptian products, Auf said that the commercial representation offices abroad are weak, especially as their data do not meet the needs of exporters.

He added that the main current outlets for exporting companies are the specialised foreign exhibitions, which provide opportunities to meet foreign importers and get to know their needs.

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Almamlka Foods negotiates with agriculture ministry to buy soybean and maize crops from 2,000 feddans https://dailynewsegypt.com/2017/04/27/almamlka-foods-negotiates-agriculture-ministry-buy-soybean-maize-crops-2000-feddans/ https://dailynewsegypt.com/2017/04/27/almamlka-foods-negotiates-agriculture-ministry-buy-soybean-maize-crops-2000-feddans/#respond Thu, 27 Apr 2017 09:30:10 +0000 http://www.dailynewsegypt.com/?p=623359 Company to establish oil extraction plant with Algerian and Moroccan companies for EGP 250m, says Arafa

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Almamlka Foods is negotiating with the Ministry of Agriculture and Land Reclamation to sign a letter of guarantee and buy soybean and maize crops from 2,000 feddans (2,076 acres) at the international price.

Mahmoud Arafa, CEO of the company, said that the company expanded in the domestic market after the flotation of the pound that caused a low value of the Egyptian pound against the dollar, which increased import costs and affected the profits of the company, which depends entirely on imports for its production input.

He added that the company plans to inject new investments, in partnership with entities from Algeria and Morocco, to set up a factory for feed and oil extraction on an area of 25,000 square metres with an initial investment of EGP 250m.

He pointed out that the company will submit a request to obtain a piece of land for the implementation of projects in Upper Egypt, according to the Egyptian president’s decision regarding granting lands there.

President Abdel Fattah Al-Sisi issued a decree determining that lands will be allocated to industrial investors free of charge. According to the decision, lands will be granted free of charge to investors who meet the technical and financial conditions in specified areas, including Minya, Assiut, Sohag, Qena, Aswan, and the New Valley governorates.

Arafa explained that the flotation of the pound has had a significant impact on the company, since it is operating with imported raw supplies and extracted oils.

He added that shifting to the cultivation of soybeans and maize will provide the dollar reserves required for imports and therefore positively impact prices.

He said that the company is importing 10,000 tonnes of feed, but imports declined by more than 50% after the liberation of the exchange rate.

Almamlka Foods was founded in 2008. It is an Egyptian shareholding company operating in the supply of raw materials to feed mills, as well as oil extraction.

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Hero Food Industries set to enter US market in May for first time https://dailynewsegypt.com/2017/04/27/hero-food-industries-set-enter-us-market-may-first-time/ https://dailynewsegypt.com/2017/04/27/hero-food-industries-set-enter-us-market-may-first-time/#respond Thu, 27 Apr 2017 09:00:39 +0000 http://www.dailynewsegypt.com/?p=623356 Export target for the US is $10m, says managing director

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Hero Food Industries contracted with a supermarket chain in the United States to directly export its jam products next month.

The managing director of the company in the Middle East and Africa, Mahmoud Bezan, said that entering the US market proves the company’s commitment to maintain international quality standards.

He added that the company aims to boost its exports to the US to $10m over the coming three years and increase all its exports to EGP 500m by the end of 2017 across 25 countries worldwide.

Moreover, he pointed out that the company aims to raise sales on the local market to EGP 1bn, up from EGP 700m last year, which included exports worth EGP 245m, accounting for 35%. The new plan is to boost exports to 50% of the production.

Bezan said the company aims to enter new African markets in 2017, despite the challenges it faces in the continent, considering the low consumption rate of jam.

He highlighted the importance of international exhibitions that help the company introduce its products to the world.

He said the company is already present in a number of African countries, as Hero accounted for a large share in the Sudanese market before the recent turmoil. The company also exported large quantities to Libya.

Bezan stressed that the company intends to raise its market share in Africa through overcoming the two major problems of transfers and shipments. He noted that increasing exports to African markets will rely on expanding in existing markets—such as in Kenya, Nigeria, Ghana, Mauritius, and Seychelles—in addition to entering new markets. He noted that the company successfully entered new markets following the flotation, namely Mali, Djibouti, Ethiopia, Côte d’Ivoire, and Zimbabwe.

He said that exporting is one of the company’s priorities in the coming period, as the mother company supports that. Hero injected $5m last year to raise the quality and production capacity in Egypt, being the gateway to the Middle East and Africa.

Bezan pointed out that Hero accounts for 60% of the jam market in Egypt, and is ranked among the top companies in a number of Arab countries, including Kuwait, the United Arab Emirates (UAE), Qatar, Libya, Jordan, and Palestine.

He explained that with regards to baby food, the company holds 90% of the local market share and 40-70% in Arab countries, including Saudi Arabia, Bahrain, Qatar, and Kuwait. He noted that all baby food is imported from other branches of the international group. He pointed out that baby food accounts for 30% of the company’s annual sales.

Hero is one of the largest three manufacturers of fruits and their products in the Middle East. The headquarters in Cairo is considered the main hub for exporting to the Middle East and Africa.

The global Hero Group had acquired 65% of French Vitrac company in 2002, and the remaining part of shares in 2005. The name was then changed to Hero Food Industries.

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Misr Cafe’s exports amounted to $20m in 2016 https://dailynewsegypt.com/2017/04/27/misr-cafes-exports-amounted-20m-2016/ https://dailynewsegypt.com/2017/04/27/misr-cafes-exports-amounted-20m-2016/#respond Thu, 27 Apr 2017 08:30:41 +0000 http://www.dailynewsegypt.com/?p=623354 Company allocates EGP 150m to raise capacity for packaging lines by 50% in 2017

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Chairperson of Misr Cafe Moneer Masood said that the company’s exports in 2016 reached $1.5m to African countries, with plans to boost the figure by 25% in 2017. Total exports registered $20m.

Masood told Al-Borsa that Africa is one of the most promising markets for Egyptian food industry companies, as the company aims to participate in all exhibitions to enhance its presence in the African markets, including the Food Africa exhibition.

He added that there are several obstacles that must be solved, such as the difficulty of maritime shipping, especially to the countries in West Africa. He noted that shipping accounts for 8% of the final price to Africa; however, shipping to Europe only accounts for 3%.

He explained that African countries impose certain requirements on the packaging of Egyptian products, and this also raises the cost of the product, especially after the flotation of the exchange rate and the price hikes of several packaging materials, which account for 9% of the final price.

Moreover, Masood said that lack of shipping lines to many African countries also hinders exporting to them, urging the government to sign trade agreements and waive customs tariff between the countries of East and West Africa with Egypt to lower the prices of Egyptian products and raise their competitiveness.

As for the company, Masood said that Misr Cafe increased its production capacity to 9,000 tonnes in 2016.

He added that the company is seeking to expand in packaging lines this year to increase their capacity by 50%, with investments of EGP 150m.

Misr Cafe is specialised in producing instant coffee products, including Instant Coffee, 2×1 Coffee, 3×1 Coffee, Ginseng Coffee Mix 4×1, Ginger Coffee Latté 4×1, flavoured instant cappuccino, and iced cappuccino.

Masood said that the food industry is one of the most promising sectors in the Egyptian market, adding that the Agricultural Export Council is working to remove obstacles for exporters.

He pointed out that the flotation of the pound in November enhanced the competitiveness of Egyptian products throughout all markets, which contributes to the provision of foreign currency.

He expected the coming period to see more investments being pumped into the food sector, especially as the turmoil in several countries stopped their production and increased the need for imported products.

He pointed out that the company exports to 40 countries around the world, including Malaysia, the US, Japan, and Canada, besides the Arab countries, with plans to enter new markets in Poland, Armenia, and all over Africa.

He highlighted the need for taking part in food exhibitions to communicate with importers in other countries.

Masood said that the company participated in the Gulfood exhibition and that it will be taking part in the Food Africa exhibition.

He noted that the company’s market share is 10-15% in Egypt, noting that, in a bid to offset losses, priority is given to exports, especially following production cost hikes by 35%.

The company did not raise the prices of its products following the pound’s flotation at the same rate the exchange rate increased, Masood pointed out.

He added that the Egyptian market has huge potential, especially in the field of food industries. Additionally, factories aim to expand and find more opportunities following the government decisions to limit imports, which gives local products a chance to replace imported goods, he stated.

Masood furthermore explained that the company is working on the development of production and on the use of the latest technology in manufacturing and improving the product-delivery process, as well as increase spending on research and development.

Finally, he stressed the need for technical training in the coming period to improve the quality of labour in all fields.

Founded in 1984, Misr Cafe is the number one company in Egypt and the Middle East for producing instant coffee from a blend of Robusta and Arabica coffee, with three brands on the market.

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Seklam aims for 25% more sales in 2017 https://dailynewsegypt.com/2017/04/26/seklam-aims-25-sales-2017/ https://dailynewsegypt.com/2017/04/26/seklam-aims-25-sales-2017/#respond Wed, 26 Apr 2017 11:00:04 +0000 http://www.dailynewsegypt.com/?p=623214 Company is seeking to open up new markets in Africa and Asia this year

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Seklam for Dairy Industries, a subsidiary of Al Mansour Group, aims to increase sales by 25% this year. General manager of the company, Alaa Al-Wakil, said that sales dropped by 25% in the first quarter of 2017.

However, he expected sales to improve by the end of the third quarter. Al-Wakil told Al-Borsa that the company is about to finish consuming all its production inputs imported before the flotation of the pound, with only 5-10% remaining.

He explained that the company imported input requirements enough for 4-12 months before the flotation, noting that most prices rose following the flotation, such as the price of milk powder, which hiked from $2,800 to $3,500 per tonne.

He pointed out that the year 2017 is the most difficult in the field of food industries due to the high prices, which led to a recession in the market and impacted the volume of sales.

He noted that the company raised salaries between EGP 1,200 and EGP 1,500 by 25% following the flotation.

Al-Wakil said that several factors led to the increase of final prices, such as the high cost of production inputs, as well as the fees paid at ports and for transportation, along with maintenance.

He explained that the food safety law will increase the quality of the Egyptian products and improve their reputation in foreign markets, adding that the majority of exports go to Arab countries. He pointed out that major companies compete through prices and quality, while smaller companies can only compete through prices.

As for the challenges facing the sector, Al-Wakil said that the cost of energy and other utilities, such as water, have increased over the past two years.

He added that the state supports the food industry by prioritising it in terms of importing raw materials. He stressed on the need to inject more hard cash into the banking system to cover imports of production inputs.

Moreover, Al-Wakil said that the African market is very promising, but entering African markets is a difficult challenge for Egyptian companies due to many reasons, such as the high cost of transportation and the difficulty of maintaining a cold chain in Africa.

He suggested that Egyptian companies can establish import companies in Africa and that the state can support them through signing agreements with various African authorities to protect these companies.

He pointed out that his company established two subsidiaries to distribute its products in Nigeria.

Al-Wakil said that Arab countries are the largest importers of Egyptian products, as Europe bans entry of Egyptian dairy products due to a lack of veterinary agreements.

He noted that his company invested EGP 100m in 2016, which was allocated for expanding the yoghurt factory in order to double capacity to 17,000 tonnes.

Furthermore, Al-Wakil said that the company intends to inject EGP 10-12m this year to buy equipment that can facilitate production at the yoghurt and juice factories.

He added that the company exports its products to a number of Arab and foreign countries, including Iraq, Jordan, Yemen, the United States, and Canada, and it aims to enter new markets in Africa and Asia in the coming period.

He explained that the African market is already an important destination for the company’s products, especially the markets of Djibouti, Kenya, Madagascar, Mauritania, and Somalia.

He noted, however, that the company halted exporting in 2015 and 2016, as it mainly relied on exporting to Syria, Libya, Iraq, and Yemen, and the instability of the political and economic conditions in those countries forced them to halt exports.

As for the target markets in 2017, Al-Wakil said that the company aims to expand to the markets of Ghana, Nigeria, Morocco, and Algeria.

He added that the company also intends to raise its exports size by 300% in 2017, noting that the company takes part in foreign food industry exhibitions, such as the Food Africa Expo, to learn more about the developments in the sector and look for potential investments in other countries.

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Egyptian-Saudi Committee to meet mid-May in Riyadh: Kabil https://dailynewsegypt.com/2017/04/24/egyptian-saudi-committee-meet-mid-may-riyadh-kabil/ https://dailynewsegypt.com/2017/04/24/egyptian-saudi-committee-meet-mid-may-riyadh-kabil/#respond Mon, 24 Apr 2017 14:06:12 +0000 http://www.dailynewsegypt.com/?p=623069 The committee will discuss enhancing cooperation in trade, investment, consumer protection, customs, health, and transportation

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Minister of Industry and Trade Tarek Kabil announced the joint Egyptian-Saudi Committee will meet in Riyadh mid-May. The meeting will follow up on the implementation of recent recommendations released in the 15th session of the committee, chaired by the two countries’ trade ministers.

Kabil added that the meeting will discuss ways to enhance economic cooperation and increase the volume of trade exchange between the two sides. He pointed out that the meeting will address a number of economic files of common interest, including joint investment and exhibitions, and cooperation in the development of consumer protection, fisheries, food industry, medicine, health, and transportation.

The minister continued that he met with some Saudi officials on the sidelines of President Abdul Fattah El-Sisi’s visit to Riyadh, where they discussed boosting intra-trade and removing obstacles facing investors. They also agreed on facilitating the procedures of holding exhibitions in both countries and develop the electronic connection to ease data exchange related to e-commerce between the two countries, especially the Egyptian agricultural exports to Saudi Arabia.

Kabil further added that the Rihadh meetings also reviewed ways of increasing Saudi investments in the Egyptian market, especially in light of the Egyptian government’s efforts to eliminate obstacles facing foreign investors in Egypt.

He called on the Saudi side to encourage the Saudi business community to inject more investments in the Egyptian market to benefit from Egypt’s engagement in free trade zone agreements, which allow exporting to more than 1.6 billion consumers with zero customs duties. The agreements include the Arab World, the USA, Turkey, the European Union (EU), the European Free Trade Association (EFTA), the Common Market for Eastern and Southern Africa (COMESA), and soon the Mercosur and the Eurasian Economic Union. 

Kabil concluded that the Egyptian market has promising investment opportunities in many fields, including the food, construction, furniture, pharmaceutical and petrochemical, land reclamation, and energy.

 

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HEIA prepares field studies for expansion in Africa https://dailynewsegypt.com/2017/04/24/heia-prepares-field-studies-expansion-africa/ https://dailynewsegypt.com/2017/04/24/heia-prepares-field-studies-expansion-africa/#respond Mon, 24 Apr 2017 09:00:53 +0000 http://www.dailynewsegypt.com/?p=622951 We are holding bilateral meetings with other markets to learn their needs, says El Beltagy

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The Horticultural Export Improvement Association (HEIA) is preparing a timetable for expanding in African markets in the coming period and boosting the size of its agricultural exports in cooperation with officials of the East and South African markets.

Chairperson of HEIA, Mohsen El Beltagy, said that the plan to expand in the African markets will begin in September.

He explained that many African markets represent unique opportunities for cultivation and exporting, where the company is working to utilise them in the best way possible in order to intensify Egypt’s presence across the continent, especially in Ghana.

The association will hold bilateral meetings between importers in those countries and Egyptian exporters, in order to learn about their needs and present Egyptian products, he added.

He noted that specifying the type of products that can be exported to certain markets require using informed studies, sending samples, and obtaining approvals.

The goal of the association is to account for the largest possible share in African markets, he stated, especially as many other countries have their eyes set on moving to Africa.

El Beltagy said that African markets cannot be replaced by other countries and will not be replacing European markets.

He explained that the general plan is focused on exporting in general, but the specified plan will target each market separately with certain products.

Egyptian products face many obstacles that must be solved soon before exporting them to the continent, he pointed out.

He also noted that Egypt has a good share in European markets, driven by the easy transportation and shipping.

Yet, in Africa, shipping is not an easy task. He urged the need to find simple solutions to develop logistics, especially as agriculture products can easily be damaged by delay, which costs exporters huge amounts.

El Beltagy also noted that trade agreements with foreign countries are a good step to strengthen relations with them and increase cultural and trade exchange.

He said that Egypt did not benefit from Africa at all, due to the lack of studies and weak exporting.

Ghana, Guinea, Kenya, Uganda, and Zambia are the markets being targeted for entry, he stated.

He explained that exporting to new countries requires several steps in Egypt first, such as taking an interest in governorates in Lower Egypt and benefitting from the large areas of desert in the country in order to increase the overall size of cultivated lands and increase exports.

El Beltagy said that Egypt’s accession into the International Union for the Protection of New Varieties of Plants (UPOV) will help develop Egyptian agriculture and improve the quality of crops.

He added that the formal accession is one step away, following a meeting between Egypt and officials in Switzerland soon.

He explained that Egypt can invest in agriculture in African countries.

In addition, he noted that rumours that spread about Egyptian crops every now and then aim to hinder the sector, noting that Egyptian products enter the markets of European Union countries, which require strict quality and conditions.

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El-Raey Sweetness Halva aims to acquire 1,000sqm to establish factory https://dailynewsegypt.com/2017/04/24/el-raey-sweetness-halva-aims-acquire-1000sqm-establish-factory/ https://dailynewsegypt.com/2017/04/24/el-raey-sweetness-halva-aims-acquire-1000sqm-establish-factory/#respond Mon, 24 Apr 2017 08:30:43 +0000 http://www.dailynewsegypt.com/?p=622950 We are negotiating with the NBE to borrow EGP 3m, says managing director

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El-Raey Sweetness Halva Company has submitted a request to get a 1,000 square metre plot of land in Badr City, allocated to establish a factory with a production capacity of 900 tonnes of “Halawa” (a sweet, sesame-based treat) per month at investment costs of EGP 10m.

Managing director of the company, Atef Adly, said that the company is seeking a small plot of land, as it prefers to self-finance its project, especially after interest rates were increased by the Central Bank of Egypt (CBE).

He explained that the recent definition of small and medium enterprises (SMEs), which was introduced by the CBE, puts the interest rate down to 5%, which prompted the company to negotiate with the National Bank of Egypt to borrow EGP 3m.

The CBE had redefined the definition of SMEs to a maximum of sales of EGP 200m per year.

Adly said that the company’s desire to expand in Cairo is due to the low cost of transportation from Cairo to other cities, next to the company’s plan to expand in exporting.

He pointed out that the Gulfood exhibition was the gateway to expand to other non-Arab African countries through a number of export contracts that the company signed for the first time, inviting El-Raey to expand in the region, especially since several African companies subsidise the freight by 50%.

El-Raey Sweetness Halva Company’s exports exceeded EGP 25m since the beginning of 2017. The company plans to reach exports of EGP 100m by the end of the year.

Adly noted that exporting has become more stable for food industries and the company, despite relying 100% on imported sesame. However, he explained that the high cost of production input is offset by the exchange rate, which maintains the profit margin when prices are unchanged.

He pointed out that the situation is different on the local market, as the high prices lowered Egyptians’ purchasing power, which made sales decline and profits drop.

El-Raey Sweetness Halva Company so far owns a factory on 2,000 square metres in Tiba, Minya, with a capacity of 450 tonnes per year.

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Green Fields targets 30% growth in exports in 2017 https://dailynewsegypt.com/2017/04/24/622936/ https://dailynewsegypt.com/2017/04/24/622936/#respond Mon, 24 Apr 2017 08:00:12 +0000 http://www.dailynewsegypt.com/?p=622936 Green Fields aims to boost exports by 30% in 2017 through opening new markets in Africa. Mohamed Khedr, the deputy exports director, said that Green Fields exports in 2016 amounted to EGP 52m. He added that the company carried out expansions to increase its production capacity over the past year by introducing new packaging lines and increasing …

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Green Fields aims to boost exports by 30% in 2017 through opening new markets in Africa.

Mohamed Khedr, the deputy exports director, said that Green Fields exports in 2016 amounted to EGP 52m.

He added that the company carried out expansions to increase its production capacity over the past year by introducing new packaging lines and increasing the production of cheese.

Khedr stressed the company’s eagerness to expand in overseas markets, either through exhibitions or promotional missions carried out by the export councils.

He explained that the Arab Gulf states, next to some African countries, are the most important markets for the company. He added that Green Fields also aims to enter the US market after participating in the Summer Fancy Food Exhibition in June.

Khedr said that participation in promotional missions allows exporting companies to identify foreign markets and their competitors, which helps to improve their performance.

He added that 70% of the company’s production goes to the local market, with only 30% going to exports, although there are plans to raise exports to 50%.

He explained that the company tried to absorb the cost increase after the liberalisation of the exchange rate, but it was forced to raise prices, especially since 70% of the production inputs are imported.

He pointed out that Green Fields is keen to participate in foreign exhibitions, urging the Food Export Council to expand in hosting exhibitions in the coming period.

Khedr noted that the company will be expanding starting next month in order to produce larger packages of white cheese to meet the demand that increases during Ramadan.

Green Fields produces dairy products, including white cheese, processed cheese, cheddar cheese, Turkish cheese, and mozzarella cheese.

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Food Africa exhibition is expecting contracts worth $130m in 2017 https://dailynewsegypt.com/2017/04/24/622923/ https://dailynewsegypt.com/2017/04/24/622923/#respond Mon, 24 Apr 2017 07:30:50 +0000 http://www.dailynewsegypt.com/?p=622923 15% increase in the number of exhibitors this year, says Qabil

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Dalia Qabil, executive director of the Food Africa exhibition for the food industry, expected the value of contracts to reach $130m, compared with $105m in the previous session, an increase of 23%. The sixth session of the exhibition will be held between 22 and 24 April.

Qabil pointed out that the number of companies participating in the exhibition this year will reach 442 from 32 countries, including the Kingdom of Saudi Arabia (KSA), Turkey, the United Arab Emirates (UAE), Italy, Spain, India, and Indonesia.

The number of exhibitors from companies in the current session is roughly 15% higher compared to the number of exhibitors last year.

There will be 201 international exhibitors from 32 countries and 8 official suites, as well as 500 international buyers from 52 countries.

The announced exhibitors are Americana Group, Misr Cafe ,Temmy’s, FARAGALLA group, Juhayna, Egy Swiss Food, Edita, Halwani Brothers, Best Cheese, Bayer Foods, Abu Auf, Angel Yeast, Makarony Polskie, and Raya Holding.

The exhibition work list includes a press conference to cover the most prominent seminars, which include trade with Africa, tastes of consumers in Europe, the definition of the Suez Canal Company for aquaculture activities, and the active partnerships between farmers and exporters.

It also includes bilateral business meetings between exhibitors and international buyers mission (B2B matchmaking), and there will be a live cooking area organised in cooperation with the Egyptian Chefs Association (ECA).

Food Africa is one of the largest regional exhibitions on the African continent, and is dedicated to all food industries and agricultural crop sectors for production inputs, machinery for food manufacturing, packaging, and final products.

Qabil added that the exhibition targets the Egyptian, African, and Arab market and is designed to be the meeting point of all employees in the field of food in the Middle East and on the African continent.

The exhibition sent invitations to more than 10,000 representatives working in the food industry and agricultural crop sectors inside Egypt, including importers, wholesale and retail merchants, distributors, supermarkets, and officials of hotels and restaurants.

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Sakr Group targets EGP 20m of exports to Africa https://dailynewsegypt.com/2017/04/23/sakr-group-targets-egp-20m-exports-africa/ https://dailynewsegypt.com/2017/04/23/sakr-group-targets-egp-20m-exports-africa/#respond Sun, 23 Apr 2017 10:30:45 +0000 http://www.dailynewsegypt.com/?p=622823 Turkey, China are the most prominent competitors, says Sakr

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Sakr Group for Food Industries targets increasing exports to African countries to EGP 20m in 2017 through expanding to new markets.

Ahmed Sakr, chairperson of the company, said that they plan to expand in the African markets in 2017, adding that the high population and population growth of many African countries make them promising for exports.

He called upon the government to interfere in order to overcome the challenges facing Egyptian companies seeking to expand in Africa, especially as the prices of freight and insurance are overvalued.

Turkey and China are the main competitors in African markets, he pointed out.

Sakr asserted the importance of trade representation offices and stressed the need for their market studies.

He noted that Sakr Group exports to several African countries, including Mauritania, Kenya, South Africa, Somalia, and Chad, with plans to expand in more countries, such as Nigeria and Ghana.

The total Egyptian production of cheese triangles amounts to 120,000 tonnes worth EGP 1.5bn, Sakr said, noting that 100,000 tonnes used to be exported to Iraq, which stopped recently.

He pointed out that the company’s exports during the first quarter of this year reached $5m, up by 30% from the same period last year. He added that the company used to channel 50% of its production to exports prior to 2011.

According to him, international exhibitions are opportunities to promote Egyptian products, as many different clients come together in one place, and he urged that Egyptians need to increase their presence.

Sakr also said that the company is aiming to increase its exports to the Arab communities in European countries and America, who favour food manufactured in Arab countries.

He called upon the state to increase its support for participation in global exhibitions in order to stimulate small and medium enterprises and provide them with the opportunity to grow.

He also stressed on the importance of reconsidering the export policies and subsidies, as well as signing new economic agreements to boost exports in all fields. Furthermore, he called upon the government to establish an agency to gather all related agencies and businesspeople together in order to stimulate Egyptian exports through mapping potential markets and establishing marketing centres in those markets.

Turkish companies receive support from their state to expand in exports, he pointed out, which makes them tough competitors in many European and Gulf countries.

Sakr said that the flotation of the Egyptian pound drove up the cost of production, noting that the food industries have been suffering from frequent price hikes of electricity and all production inputs.

He noted that factories are trying to absorb any possible new production cost hikes and not pass the surge onto consumers.

In general, he said that the Egyptian market has huge potential, especially in the field of food processing.

He explained that factories are trying to expand to find new marketing potential after the government passed several decisions limiting imports.

He pointed out that his company is always seeking to improve production and adopt modern technologies to improve the quality of products and offer new ones, so as to take a larger market share.

Sakr said that the flotation forced consumers to look for the best products, rather than spending money on cheaper products with lower quality.

The problem of labour is one of the most important problems facing manufacturers now, he noted, especially amid the lack of attention to technical training.

He explained that the company has seven factories in Borg El Arab, Alexandria, including a cheese triangles and square-cheese factory that contains nine production lines with a capacity of 1.7 tonnes per hour.

Moreover, Sakr noted that the company is the exclusive agent for several international companies in New Zealand, the United States, and Europe, and that the group also owns another company to import and distribute NZMP butter.

In addition, the group is also the main importer of canned tuna and mackerel from Thailand, along with frozen meat and liver from the United States and frozen fish from different countries, such as the United Kingdom, Mauritania, Ireland, and the Netherlands.

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Senorita targets EGP 200m of exports in 2017 https://dailynewsegypt.com/2017/04/23/senorita-targets-egp-200m-exports-2017/ https://dailynewsegypt.com/2017/04/23/senorita-targets-egp-200m-exports-2017/#respond Sun, 23 Apr 2017 09:30:14 +0000 http://www.dailynewsegypt.com/?p=622821 Senorita for Food Industries plans to boost its exports to EGP 200m this year through expanding to the African market. Export director at the company Tarek Younis said that total exports in 2016 amounted to EGP 104m, with plans to boost the size by 92% through opening new markets in Africa, next to expanding to …

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Senorita for Food Industries plans to boost its exports to EGP 200m this year through expanding to the African market.

Export director at the company Tarek Younis said that total exports in 2016 amounted to EGP 104m, with plans to boost the size by 92% through opening new markets in Africa, next to expanding to some Arab countries, such as Qatar, Saudi Arabia, Lebanon, and Algeria.

He noted that the Egyptian market is attractive for investments, especially the food industries sector, attributing that to the high population and growing demand for food commodities.

Younis pointed out that the foreign exhibitions are an opportunity to promote Egyptian products, which is why the company is interested in participating in them. He urged the Food Export Council to expand in these exhibitions to help companies acquire new clients.

He noted that there are several challenges for exporting products, adding that some traders buy large quantities of goods and export them directly, which could harm the reputation of Egyptian products, as goods can be exposed to damage.

He pointed out that products allocated to the local market are smaller in size, while products channelled to exports are bigger. He explained that exporters then can export Egyptian products illegally at prices lower than the company’s selling price, which can create problems with importers in other markets.

Younis stressed the necessity of preventing the export of any product except after the official approval of the producer.

He noted that Senorita applies full quality control measures across all production stages, from raw material all the way to distribution.

As for the competition with imported products, Younis said that a good market must be open to creating competition that drives companies to raise the quality of products and lower prices, which is beneficial for consumers.

With regard to challenges, he pointed out that the high cost of shipping hinders exporting, especially in the countries that do not have access to ports, which could then drive up costs by 50%.

He called for the establishment of a government agency that brings together all relevant government agencies along with businesspeople to stimulate Egyptian exports.

 

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AEC prepares to enter Africa https://dailynewsegypt.com/2017/04/23/aec-prepares-enter-africa/ https://dailynewsegypt.com/2017/04/23/aec-prepares-enter-africa/#respond Sun, 23 Apr 2017 08:30:49 +0000 http://www.dailynewsegypt.com/?p=622819 We are preparing market and consumer studies for African markets, says Demerdash

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The Agriculture Export Council (AEC) is working on the preparation of marketing and consumer studies for the African markets and is expected to finish them in May.

The AEC also intends to raise exports of the sector to $2.26bn in 2017, up from $2.146bn in 2016, with an expected growth of 5%.

Head of the AEC, Abdel Hamid Demerdash, said that the African market is important and promising for the future of Egyptian crops, where there are many potential large markets.

He added that the studies are based on exploiting the joint trade agreements between Egypt and the rest of the African countries, which will contribute to entering these markets with the help of intact economic trade plans.

He explained that the AEC is cooperating with the Egyptian trade representation offices in Africa to target specific markets, feed the council with information and market needs, and prepare studies.

He noted that the current size of exports to Africa is very low, with plans to boost exports to 5% of all agricultural exports over the next five years, with 1% growth per year.

Demerdash explained that the AEC will first send delegations with representatives from the Ministry of Agriculture to communicate with African countries on trade and their willingness to open their markets for Egyptian products.

He added that, despite their importance, African markets have many challenges facing Egyptian exporters, limiting their penetration.

He explained that the most important problems facing Egyptian exporters are the lack of guarantees to receive their financial dues and the difficult logistical situation, both of which raise the cost of production.

Demerdash noted that many exporters complain about their inability to collect their payments after exporting, due to scams committed by importers in these markets.

He pointed out that exporters can resort to the Export Development Bank of Egypt (EXPA) to prepare studies on importers in these markets and prepare a list of trusted importers.

Moreover, he said that transportation and logistics also hinder Egyptian exporters, where the lack of direct shipping lines drive production costs up, which limits the exports to these markets.

Exporters aim for the easiest markets, so they prefer European markets, he pointed out, ruling out the possibility that the African markets can be alternatives to the European markets.

Demerdash pointed out that studies aim to open new markets to increase the size of Egyptian exports and expand the country’s influence on trade in order to attract more foreign currency and stimulate the local economy.

He added that the lack of expansion in Africa so far is unjustified and cannot be explained by the challenges, as solutions must be sought to overcome these problems.

He highlighted the importance of African markets to other exporters, even though Egypt is closer to them.

Furthermore, he explained that Egypt’s location in the continent helps it penetrate these markets quickly. He asserted the need to eliminate all problems between Egypt and other African countries, as this could help Egyptian exports.

He explained that Egyptian agricultural exports to the markets of Africa are low in terms of size and value. He noted that Kenya is one of the most important countries to Egyptian exports; despite so, Kenya only receives 7,000 tonnes of agricultural exports per year from Egypt. He added that the total size of Egyptian agricultural exports to all markets in Africa is below $25m per year.

He pointed out that Kenya moved to inject huge investments into its agricultural sector over the past few years to benefit from its location, which is 2,000 metres above sea level, where the government established many refrigeration and packaging plants.

He stressed that Egypt must seek partnerships with different countries to strengthen relations and benefit the Egyptian economy.

Demerdash said that exporting to African countries now could be difficult, but will ease up in the future if problems are fixed.

He added that most importers there need new technologies to receive shipments and learn the best means for storage, which is something Egypt could help with.

He pointed out that citrus fruits are among Egypt’s top exports to Africa, but argued for the need to expand in exporting other products, which will be decided after completing the current studies.

He explained that Egyptian exports to Africa are between 30,000 and 40,0000 tonnes per year, half of which are channeled to three countries only, and this signals the weakness of Egyptian agricultural exports to African markets.

Most of Egypt’s agricultural exports are to six countries—Kenya, Mauritius, South Africa, Seychelles, Gabon, and Uganda—despite the COMESA agreement that enables Egyptian exports to access these markets without customs.

In terms of the overall sector performance, Demerdash said that the first quarter of each year can indicate the expected exports size for the entire year. Climate changes impacted the production this year, he added.

He explained that most crops will ripen late this year, which hinders AEC from completing an expected growth estimate.

The AEC intends to raise exports of the sector to all countries to $2.26bn in 2017, up from $2.146bn in 2016, with an expected growth of 5%.

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Approval for 655 projects in Q1 2017: Kabil https://dailynewsegypt.com/2017/04/20/approvals-655-projects-q1-2017-kabil/ https://dailynewsegypt.com/2017/04/20/approvals-655-projects-q1-2017-kabil/#respond Thu, 20 Apr 2017 13:02:53 +0000 http://www.dailynewsegypt.com/?p=622615 The approvals spanned nine industrial fields, with investments worth EGP 15.6bn

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Minister of Industry and Trade Tarek Kabil announced that 655 industrial projects had received the final approval to be established inside and outside industrial zones during the first quarter of 2017 with a total investment of EGP 15.6 bn.

The minister added that the new projects create almost 20,000 direct job opportunities, explaining that the approvals included projects in different industries such as food, chemical, textile, and mining, according to the ministry’s report of industrial development performance indicators.

The minister stated that the positive indicators reflect the ministry’s strategy to enhance the industrial development until the year 2020, in order to raise the rate of industrial growth to 8% and create 3 million jobs.

Currently, the ministry is focusing on small and medium enterprises (SMEs) as they are the main engine for development and innovation, Kabil noted.

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Importing raw material erodes advantages of flotation: Arab Dairy https://dailynewsegypt.com/2017/04/20/importing-raw-material-erodes-advantages-flotation-arab-dairy/ https://dailynewsegypt.com/2017/04/20/importing-raw-material-erodes-advantages-flotation-arab-dairy/#respond Thu, 20 Apr 2017 06:30:27 +0000 http://www.dailynewsegypt.com/?p=622538 Trade agreements do not live up to expected level, says Abdel Moneim

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Arab Dairy Food Industries aims to achieve a 17% growth in exports in the current year to reach 15,200 tonnes—up from 13,000 tonnes last year.

The company produces dairy products of all kinds, including white, processed, and mozzarella cheeses. Total production amounts to more than 30,000 tonnes per year.

Exports director at the company, Sherif Abdel Moneim, said that Arab Dairy is interested in the markets of the Gulf, the Levant, and North Africa since they have the biggest demand for Egyptian dairy products.

Jordan and Lebanon account for 40% of the company’s annual export volume, while Iraq accounts for 35% and North Africa for 4%. The remaining exports are channelled to different markets.

Abdel Moneim said that the company began penetrating Asian markets recently, but will take some time to establish a foothold there. He noted that the coming period will see the signing of trade agreements with East Asian countries, especially as the value of their currencies dropped and the imports bill from the European Union increased.

He stressed that the only problem in entering East Asian markets is the lack of trade agreements with them, which could prevent the companies from concluding contracts.

He pointed out that there are not that many trade agreements between Egypt and foreign countries, noting that even existing agreements are below the expected levels and need to be activated, especially with African countries and Eastern Europe.

He explained that Senegal puts tariffs on food products of up to 70%.

Furthermore, Abdel Moneim said that many foreign markets do not even have cheese, including African markets.

He added that using supermarket chains in these markets is one of the best tools for promotion in Africa.

Abdel Moneim said that the decision to float the pound was good, but did not benefit exports as expected, especially as most manufacturers rely on importing raw materials, which increases the production costs.

He noted that the flotation confounded the companies in the food industries field, as costs are usually reconsidered periodically to match the exchange rate and companies then price the products accordingly.

He pointed out that the situation forced the company to lower its production capacity and suspend some factories. He added that other companies shifted to other industries that do not require the import of raw materials.

Abdel Moneim said that Egypt has the raw materials for the domestic market, but lacks the potential to expand in the field, urging the need to provide modern technologies to secure raw materials with high quality.

He stressed that the market needs more feeding-industry manufacturers, as the current number of factories is small and cannot cover the market needs.

He pointed out that Egypt suffers from a shortage in milk production, adding that closing the gap in the production chain from the local market can benefit exporting.

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Agro Food intends to keep sales at EGP 250m in 2017 https://dailynewsegypt.com/2017/04/20/agro-food-intends-keep-sales-egp-250m-2017/ https://dailynewsegypt.com/2017/04/20/agro-food-intends-keep-sales-egp-250m-2017/#respond Thu, 20 Apr 2017 06:00:43 +0000 http://www.dailynewsegypt.com/?p=622529 50% of production is organic, England accounts for 60% of exports, says Hegazy

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Agro Food for Agricultural Crops aims to keep its sales at EGP 250m this year, the same as 2016.

Salah Hegazy, chairperson of the company, said that 50% of the company’s products are organic, which is why it channels production to supermarket chains that have a consumer base for organic products.

Agro Food specialises in potatoes, sweet potatoes, onions, garlic, beets, and carrots, which collectively account for 70% of total sales. England is the largest importer of the company’s product, accounting for 60% of its exports, followed by Russia with 15% of products.

Hegazy said that the company is producing according to a programme agreed upon with foreign importers, which helps the company develop its production annually according to market needs.

He explained that the company exported about 2,500 tonnes of potatoes, at a time when importers in the foreign market are in need of 10,000 tonnes. He pointed out that the company cannot meet the demand, due to a lack of good agriculture land.

He noted that the company has 5,000 feddans (5,189 acres), with plans to acquire more lands to meet the growing demand.

Moreover, Hegazy said that Egyptian crops have a potential for growth in international markets—especially African countries—amid competition faced in Europe, which nominates Africa to be a new market for Egypt.

He added that Egyptian products are highly competitive in African markets and have the advantage of geographical proximity, as well as possessing similar tastes and cultures.

He said that the quality enjoyed by Egyptian crops qualify them for competition in Africa, but after solving two main problems. The first problem is the transportation to all African countries, while the second problem is receiving dues—considering the weakness of the banking systems in those countries.

Hegazy said that the Argin crossing, which connects four African countries together, is one of the long-term solutions to the transportation problem, although it will not be enough. He explained that the sensitivity of agricultural products requires faster routes, preferably through air shipping.

He added that the cost of land transportation is high compared to maritime shipping, which is more economic for exports. He urged the state to consider the transportation issues in the coming period.

Taking part in international exhibitions is necessary in order to learn about international developments and meet foreign clients, he urged, pointing out that taking more interest in marketing is a very good step towards developing exports and expanding to new markets, as well as preparing market studies.

Holding strong economic ties with other countries can help increase trade in the African markets, he noted, adding that helping countries with their national projects will revive the economies of those countries, while also helping Egypt to secure its food needs with lower prices.

In addition, Hegazy said that manufacturing raises the value of products on global markets, which means more hard cash revenues that can be used for new projects.

Overcoming problems that are faced while exporting to African markets would help double Egyptian exports to the continent, he added.

Hegazy asserted that Egypt must go further in cooperating with African countries, including offering studies and plans, in order to help them establish strong infrastructures, which would also strengthen relations with these countries.

Lastly, he pointed out that very few countries in Africa have the technology for storing foods and agricultural crops; hence, they must be introduced to cooling systems and drying techniques used to preserve exported goods.

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Sugar, rice prices to decline starting mid-April: Rice Division https://dailynewsegypt.com/2017/04/07/sugar-rice-prices-decline-starting-mid-april-rice-division/ https://dailynewsegypt.com/2017/04/07/sugar-rice-prices-decline-starting-mid-april-rice-division/#respond Fri, 07 Apr 2017 13:31:53 +0000 http://www.dailynewsegypt.com/?p=621268 Importers, distributors compelled to write factory sale price on packages to eliminate random pricing, says Shehata

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Ragab Shehata, head of the Rice Division at the Chamber of Cereal Industries in the Federation of Egyptian Industries (FEI), said that the price of rice and sugar in the local market will be declining starting mid-April.

He explained in a statement to the Middle East News Agency that the decision made by the Minister of Supply and Internal Trading Aly Meselhi to compel importers and distributors to write the factory sale price on the packages of products as well as to ban trading goods that have no prices stamped on them starting mid-April. This will consequently eliminate random pricing and stocking goods, eventually benefiting consumers, according to Meselhi.

He pointed out that those who violate the new decision will be subject to punishment, where the ministry will confiscate goods. He added that distributors will get rid of the amounts of rice and sugar that are not priced to avoid their confiscation.

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Kabil signs four cooperation agreements with Lebanon https://dailynewsegypt.com/2017/03/23/kabil-signs-four-cooperation-agreements-lebanon/ https://dailynewsegypt.com/2017/03/23/kabil-signs-four-cooperation-agreements-lebanon/#respond Thu, 23 Mar 2017 19:54:32 +0000 http://www.dailynewsegypt.com/?p=619640 The agreements include cooperation in the industrial sector, organizing exhibitions, regulating property rights, and exchanging trade information

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Tarek Kabil, the Minister of Trade and Industry, signed four agreements today with the Lebanese side and said they represent a large step towards activating the strategic partnership between the two countries on the economic, trade, and industrial levels, which will have a clear, positive impact on joint trade and investments over the upcoming period.

Tarek Kabil signed the agreements with Lebanese deputy prime minister Ghassan Hasbani, as well as Lebanese minister of economy and foreign trade Raed Khoury. The signing ceremony was held in the presence of Prime Minister Sherif Ismail and his Lebanese counterpart, Saad Hariri.

The cooperation agreements between Egypt and Lebanon involved the field of exhibitions and international markets, with the goal of improving the trade relations between the two countries through encouraging participation in international fairs and markets, as well as holding an annual fair for Egyptian products with high competitiveness in Lebanon, and a Lebanese fair in Egypt.

Kabil also signed a memorandum of understanding (MoU) between the Egyptian International Trade Point and the Lebanese Trade Information Center to exchange information about Lebanese and Egyptian products and services with the goal of promoting them and stressing the electronic promotion mechanisms, as well as expanding in the field of technological training that is related to electronic trade.

The third agreement included a protocol for industrial cooperation. It aims to encourage cooperation in several industrial fields of high priority in both countries, most prominently the food, textile, and clothes industries. Industrial training programs are a priority in the protocol, which also referred to the importance of intensifying meetings with industrialists in both countries and activating the work of the joint industrial committee.

Another MoU was signed in the field of protecting copyrights, with the goal of encouraging local and foreign investments in both countries. This can be done through protecting all kinds of copyrights while stressing the importance of exchanging expertise and training staff in the field.

Kabil witnessed on Wednesday the signing of an MoU between the Chamber of Building Materialsaffiliated to the Federation of Egyptian Industries (FEI) and represented by Ahmed Abdel Hamid—and the Syndicate of Marble Factory Owners, represented by its head, Nazih Najem.

The aim of the MoU is to encourage industrial integration and the exchange of expertise, as well as developing human resources between Egypt and Lebanon.

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ABCC closely monitors Brazil meat probe https://dailynewsegypt.com/2017/03/23/arab-brazilian-chamber-commerce-closely-monitors-brazil-meat-probe/ https://dailynewsegypt.com/2017/03/23/arab-brazilian-chamber-commerce-closely-monitors-brazil-meat-probe/#respond Thu, 23 Mar 2017 17:05:27 +0000 http://www.dailynewsegypt.com/?p=619622 Brazilian federal police are investigating 21 slaughterhouses on suspicion of irregularities

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The Arab-Brazilian Chamber of Commerce (ABCC) released a statement declaring that it is closely following the developments of operation Carne Fraca, which is the ongoing investigation on meat processing plants.

The statement read, “In the capacity of an organization that for 65 years has been responsible for the close ties between importers and exporters from Brazil and the 22 countries of the Arab League, the Arab-Brazilian Chamber of Commerce states that it is following closely, step by step, the developments of the operation by Brazilian Federal Police, launched last Friday, 17 March, involving Brazilian meat processing plants.”

We’re committed to transparency and engaged in the search for clarifications so all parts interested in the preservation of the relationship between Brazil and the Arab countries, specifically concerning exports of meats and products, are informed on the course of events,” stated president of the ABCC, Rubens Hannun.

According to data from the Brazilian ministry of industry, foreign trade, and services (MDIC) compiled by the Arab Chamber, exports of meat products to the Arab world totaled USD 574 million in the first two months, out of a total of USD 1.8 billion exported by Brazil to the region in the period. Total shipments increased 5.6% over the first two months of last year, the statement read.

The Brazilian federal police are investigating 21 slaughterhouses on suspicion of irregularities, out of more than 4,800 operating in Brazil. The Brazilian government recently announced the suspension of the export licenses of the plants under probe.

After the operation, the Brazilian government is also determined to speed up the audit procedures in the meat plants being investigated, establish joint efforts between the ministry of agriculture and the federal police in the ongoing investigations, contact international organizations to ensure the quality and sanitation conditions of Brazilian meat, and penalise those found responsible for any wrongdoing. There are 33 public officers from the ministry of agriculture being investigated, out of a total of 11,000 employees.

Brazlian president Michel Temer declared on Tuesday that South Korea, who had considered suspending imports of Brazilian meat, decided otherwise.

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