The Greek Community of Alexandria

Category: ECONOMY

News about economy

  • Egypt to increase visa fees for incoming tourists by 140%

    Egypt to increase visa fees for incoming tourists by 140%

    Tourists will have to pay $60 for their entry visa to Egypt, compared to the previous $25 for single entry and $70 for multiple entry visas, Egyptian airport officials said.

    They also added that banks and travel and tour agencies have received notifications from the Ministry of Foreign Affairs regarding the new price, which will be taking effect in July after Prime Minister postponed the implementation that was originally scheduled for Wednesday.

    The rise in prices is a result of the country’s vital tourism industry struggling to restore its normality and recover after it was heavily shaken when a Russian plane was downed in October 2015 over the Sinai Peninsula, killing all 224 people on board, which caused a dramatic drop in tourism figures since tourists were scared away by the incident.

    Egypt’s tourism revenues witnessed a 44.3% drop in 2016, compared to the year before.

    With the resumption of flights from multiple European countries like Russia, Norway, Sweden, Finland, and others that had previously suspended their flights to Egypt after the Russian plane incident, and with the new entry visa fees, the country hopes to witness an increase in foreign currency reserves.

    Egypt last increased its entry visa fees in April 2014, from $15 to $25.

    (www.dailynewsegypt.com)

  • Egypt Heads Project to Connect 10 African Countries through Nile Shipping Line

    Egypt Heads Project to Connect 10 African Countries through Nile Shipping Line

    By 2024, a 4,000 kilometers waterway will connect ten African countries, stretching between Lake Victoria and the Mediterranean Sea. An Egypt-led project, the navigational shipping line is to be established along the Nile River for small and medium-size commercial vessels to boost bilateral trade.

    Egyptian Minister of Water and Irrigation Moahmed Abdel Aty announced the completion of an annual report which highlights the results of the early stages of the feasibility studies. Egypt signed a feasibility studies contract with a German-Belgian international consultancy office, using $650,000 in funding from the African Development Bank, after having completed a pre-feasibility study in May 2015, which cost $500,000.

    The 12 billion USD line originally incorporated nine countries: Tanzania, Kenya, Uganda, Rwanda, Burundi, Democratic Republic of Congo, South Sudan, Sudan and Egypt. Despite political strife with Egypt over its Renaissance Dam, Ethiopia decided in January to jump aboard the project.

    The Egyptian government and the New Partnership for Africa’s Development (NEDPAD), the technical body of the African Union, launched the project in June 2013, with the idea to promote “intermodal” transport by integrating river, rail and road transport facilities along the Nile Corridor and to develop river management capacity.

    “This project will boost economic development in the Nile Corridor by increasing trade and regional integration, as well as the transport of goods and people,” NEPAD states.

    Intermodal transport integration will include sections along the Trans-Africa Highway (Cape Town–Cairo, Lagos-Mombasa, Dakar-Ndjamena-Djibouti and Cairo-Dakar), various railway lines, as well as the big harbours in Alexandria, Suez Canal, Mombasa and Dar es Salaam, indicates the NEPAD website.

    Egypt has listed a number of potential project components, including supporting economic development in the Nile Basin by raising the level of trade and transport of goods and people, constructing a navigational line connecting Lake Victoria and the Mediterranean Sea through the Nile River, and establishing river navigation management training centres in some of the footprint states “based on the Egyptian experience”.

    Phase one of the project will comprise the section from Lake Albert in Uganda to Khartoum in Sudan, the section from Gambeila in Ethiopia to the White Nile in South Sudan, and the section from Khartoum in Sudan to Aswan in Egypt. Phase two will comprise the section from Lake Victoria to Lake Albert, both in Uganda, and the section between the Blue Nile Basin in Ethiopia and the Main Nile in Sudan.

    (egyptianstreets.com)

  • EuroAfrica cable enters crucial phase

    EuroAfrica cable enters crucial phase

    The EuroAfrica Interconnector, a planned subsea electric cable connecting the Egyptian, Cypriot and Greek power grids to continental Europe has entered a crucial phase of conducting project studies with a signing ceremony for a memorandum of understanding among all parties having taken place on Monday.

    The officials attending the signing ceremony in Cairo endorsed their commitment to implementing the EuroAfrica Interconnector energy bridge connecting Egypt, Cyprus, and Greece with the European electric network with 2000MW.
    The aim of EuroAfrica is to offer significant economic and geopolitical benefits to the involved countries and contribute to the European Union’s target for 10 per cent of electricity interconnection between member states.

    President of EuroAfrica Interconnector Nasos Ktorides said that this inspired partnership can only bring benefits to the three participating nations.

    “Greece will increase its energy efficiency, and will become a major player in the European energy arena, Cyprus will be an electricity hub in the south eastern Mediterranean and Egypt will become an important energy hub for Africa and electricity carrier for the European continent,” he said.

    In a packed news conference attended by the highest officials of Egypt’s ministries of Energy, Electricity and Foreign Affairs, the Egyptian minister of Electricity and Renewable Energy Dr Mohamed Shaker highlighted the importance of the submarine electric cable as part of his country’s strategic plan for economic development and energy security.

    Shaker emphasised both his personal commitment and that of the Egyptian government to bringing this great venture to fruition.

    Earlier, Egyptian President Abdel Fattah El-Sisi called a meeting with Prime Minister Sherif Ismail and Shaker, where he expressed the government’s commitment to the project.

    Shaker announced after the meeting that El-Sisi requested that he be regularly informed on the progress of the project on a weekly basis and to ensure that the whole project is successfully completed within the desired timeframes.

    At the signing ceremony, the Egyptian power company chief Gaber Desouky described it as an historic moment, which brings Egypt closer to the day when it is connected to the pan-European electricity grid.

    In a brief address, the ambassadors of Cyprus, Charis Moritsis, and Greece, Michael Christos Diamessis, also expressed the support of their governments in taking the project forward.

    The conclusion of the necessary studies will mark the beginning of the implementation of the interconnector electric cable, which is expected to bolster the three countries’ energy security and independence, and allow them to export power to European countries with an energy deficit.

    (cyprus-mail.com)

  • Total to start exploratory drilling off Cyprus with Greece following

    Total to start exploratory drilling off Cyprus with Greece following

    The discovery of natural resources in Israel and Egypt has motivated big companies to look into the Eastern Mediterranean closer. The French oil exploration company Total is ready to start exploratory marine drilling off Cyprus.

    What made this possible was the discovery of the Egypt’s Zohr deposit. Experts argue that the chances for deposits of similar value in Cyprus’ neighboring Block 11 have really increased.

    Three companies so far have been awarded exploration licenses by Cyprus: Total, ExxonMobil and ENI.

    Total also plans to start similar drilling activities to Greece as well, in the Ionian Sea. A delegation from Total visited Greece a couple of weeks ago to discuss the relevant details with members of the Greek government.

    Cyprus Natural Hydrocarbons Company CEO Charles Ellinas in an interview to New Europe on the 27th of January was asked if the massive Zohr deposit, the largest ever field discovered in the eastern Mediterranean, could affect negatively the export of hydrocarbons from Cyprus and Greece. His reply was that “it has affected Cyprus in that Cyprus was hoping to sell its gas to Egypt both for the domestic market and for liquefaction and export to Europe as LNG. This has now gone away because of commercial factors but also because of Zohr”, but “ the discovery of Zohr opened up the possibility of more discoveries in carbonate formations. “Total is drilling mid-2017 in block 11, adjacent to Zohr, and there are reasonable indications for a gas discovery”.

    Asked if both Greek and Cyprus hydrocarbons could be jointly exported to Europe and if they do need Israel as well, Ellinas noted that the problem for Cypriot and Israeli gas is commercial. “By the time it reaches Europe, by pipeline or as LNG, it is to expensive to compete with gas prices prevailing in Europe, particularly Russian gas. And these prices will be there for the longer term – at least to 2025,” he said, adding that if gas discoveries are made in Greece they will have a better chance. It is closer to Europe and by then there will be infrastructure in place to transport it.

    (www.tornosnews.gr)

  • Egypt sets up new fund to revive tourism industry

    Egypt sets up new fund to revive tourism industry

    Egypt has set up a new fund worth 5 billion Egyptian pounds ($267 million) to upgrade hotels, tourist resorts and Nile floating boats across the country as part of efforts to revive its ailing tourism industry.

    The new fund, which was announced by the Central Bank of Egypt (CBE) on Dec. 26, would finance maintenance and upgrades at hotels, tourist resorts and other tourism facilities with an interest rate of 10%. The CBE also decided to extend the grace period for tourism investors to pay their debts until 2018.

    Funds would also be offered to investors in accordance with a set of rules, including the investor’s level of seriousness and the benefits that will increase tourism flow to the country.

    The new measures came after a meeting between Central Bank Governor Tarek Amer and tourism investors in South Sinai during which perils of investment in the tourism sector were discussed. During the meeting, Amer promised to solve the problems Egyptian investors face in the tourism industry in order to give a push to the staggering sector.

    According to data released by the Ministry of Tourism, Egypt incurred monthly losses of 3.2 billion Egyptian pounds ($170 million) directly and indirectly after the downing of a Russian plane in the Sinai Peninsula in October 2015. Following the deadly incident, a number of foreign countries, including Russia, the UK and Germany, imposed travel bans on flights to the Red Sea resort town of Sharm el-Sheikh.

    Tourism experts say the new fund is an ambitious step to reinvigorate hotels that have not undergone maintenance and upgrades for six years as well as help them serve the expected return of tourism and travel flow to Egypt.

    “The new fund would enable hotels and tourist resorts to well receive tourist arrivals, which are forecast to increase in the coming period,” Hossam Akawy, a tourism expert and a member of the Tourism Investors’ Association in the Red Sea, told Al-Monitor.

    Germany, Denmark and Finland lifted their travel bans on flights to Egypt’s Sharm el-Sheikh last year.

    Akawy said that there are widespread expectations that the tourism industry would be back on its feet this year. “That is why hotels and tourist facilities need to get a face-lift,” he added.

    Russian Transport Minister Maxim Sokolov said last week that Russia would likely resume direct flights with Egypt in January, according to Russia’s TASS news agency. Sokolov added that the decision to resume flights will be made after Russian officials revise reports by Russian experts who have assessed Egyptian airport security. Since the Russian plane crash, Egypt has been putting in place tighter security measures at all its airports in order to draw tourists back to the North African country.

    In a phone conversation with Egyptian President Abdel Fattah al-Sisi late last month, Russian President Vladimir Putin said that his country intends to resume flights with Cairo in the very near future.

    Akawy said that the setting up of the fund came as a lifebuoy for owners of hotels and tourist resorts in the country, as banks had stopped funding the tourism sector due to instability and financing risks.

    In March 2016, the Egyptian Ministry of Tourism announced it would not allow the establishment of more tourism companies for a year due to declining tourism flow.

    Adel Salah Nagi, another tourism expert, said that the new fund is a positive move. However, he added that it should have included support to other aspects of the whole tourism system, including marketing and tour operators. “Tourism is not only about hotels. There are other areas that also need to be upgraded and developed, especially marketing and tour operators,” he told Al-Monitor.

    Nagi said that the government also has to further facilitate travel measures for tourists and launch direct flights with countries that Egypt is not directly connected with. He called upon the authorities to cancel the entry visa fees. On-arrival visa fees are estimated at $25.

    Tourism has long been a main contributor to the national income. Before the January 25 Revolution in 2011, one in 10 people in the workforce worked in the tourism sector and it generated approximately $12.5 billion in revenue.

    At its peak, Egypt boasted nearly 15 million tourists a year. By 2013, tourism numbers had fallen by one-third to under 10 million a year and have undoubtedly slumped further since as the 2015 downing of the Russian jet that had taken off from Sharm el-Sheikh prompted foreign holidaymakers to book their vacations elsewhere.

    However, experts are upbeat about the outlook of Egypt’s tourism industry in 2017. According to data released by the Central Agency for Public Mobilization and Statistics, tourist arrivals jumped by 7% in October 2016 compared with a month earlier.

    Minister of Tourism Yehia Rashed said that 2017 would see a massive recovery in the Egyptian tourism sector as foreign airlines from the major markets, including Russia, the UK and Germany, are expected to resume flights to Egypt’s tourist attractions.

    Tourism revenues from those three markets, the minister added, represented more than 40% of the total tourism flow to Egypt in recent seasons.

    According to the Tourism Ministry data, Egypt attracted about 5.3 million tourists by the end of 2016 despite ongoing challenges.
    (www.al-monitor.com)

  • French Total preparing to drill off Cyprus for natural gas, says ministry source

    French Total preparing to drill off Cyprus for natural gas, says ministry source

    French energy company Total is preparing to make an exploratory marine drilling off Cyprus, a Ministry of Commerce and Energy source said on Saturday.

    Total, along with Italy’s ENI and Exxon Mobil, was awarded licenses for hydrocarbons exploration by Cyprus last month.

    The ministry source said Total plans to drill in block 11 of Cyprus’ exclusive economic zone, which shares a boundary to the south with the giant Egyptian Zohr natural gas well, the largest ever field discovered in the eastern Mediterranean.

    “We do not know yet when the drill will start, but we were notified that it will be soon,” the source said.

    The Zohr discovery by ENI reinvigorated interest in the eastern Mediterranean natural gas as the drilling was done in carbonate layers, whereas previous successful natural gas drilling was carried out in lime layers.

    A Total official said recently that the company’s interest in Cypriot block 11 was prompted by its proximity to the Zohr discovery, estimated to contain 30 trillion cubic feet of gas.

    Cypriot experts have said that block 11 sits on an undersea mountain range known as Eratosthenis, which was considered to be the source of all hydrocarbons in the eastern Mediterranean.

    The news about the impending drilling comes as efforts to solve the Cyprus problem are nearing a peak, with guarantor countries Greece, Turkey and Britain joining in discussions about security arrangements.

    Turkey objects to drilling by Cyprus without the active participation of Turkish Cypriots, who pulled out of the government and the state 53 years ago.

    The discovery of natural gas in Cyprus’ continental shelf by United States-based Noble Energy and nearby discoveries by Israel is considered by analysts to be a factor strongly influencing Turkey’s interest in solving the Cyprus dispute.

    Cyprus and Egypt signed a framework agreement last August for the transfer of natural gas discovered by Noble Energy via pipe to Egypt’s liquefaction terminals. The gas field, about 85 km off Cyprus’ southern shores, is estimated to contain 4.5 trillion cubic feet of natural gas.

    Some analysts say that Turkey counts on joining in on the proceeds from the gas by offering facilities for a gas pipe through its territory to Europe.
    An alternative route for the pipe is from the gas fields to Cyprus and Greece and from there to Prindisi in southern Italy.

    This route had originally been excluded because of the high cost involved in the project which calls for a pipe 2,000 km long, most of it on the sea bed, capable of a yearly capacity of 12 billion cubic meters of gas.

    But recent revised estimates by the European Union lowered the cost to around 5 billion euros, which is considered by specialists to be a viable proposition.

    The director general of the energy ministries of Israel, Cyprus, Greece and Italy are to meet in Brussels on Monday to consider plans for the project.

    Their talks will prepare a meeting of the Energy Ministers of the four countries scheduled for next month in Jerusalem.

    (famagusta-gazette.com)

  • Moody’s expects economic growth for Egypt by 4% in 2017

    Moody’s expects economic growth for Egypt by 4% in 2017

    CAIRO, Jan 16 (Aswat Masriya) – Moody’s Investor Service expects that Egypt’s economy will grow by 4% in 2017, and the growth rate will increase 4.5% in the following year.

    Moody’s attributes this potential increase to private consumption and foreign investments which will push forward economic development in Egypt, in a report published on Sunday.

    The report, which forecasts the economic progress for the Levant and North African countries, also said that the weak government performance, internal challenges, and geopolitics remain a threat to its dominant debts.

    The report expects that the report expects that trade deficits will reach 7.5%, but will improve in the following year by going down to 6%.

    “Meanwhile, Egypt maintains its position as the strongest economic assessment in the region; which not only reflects its significance but also its growth prospects compared to other countries,” the report read.

    Deputy director Elisa Parisi-Capone said the abundance of foreign funding through IMF loan programmes which are followed by 4 out of 5 countries in the Levant and North Africa bolsters Moody’s credit expectations for the region, in an official statement.

    (en.aswatmasriya.com)

  • Belarus to assemble tractors in Egypt’s Alexandria

    Belarus to assemble tractors in Egypt’s Alexandria

    An official ceremony to open a modernized plant to assemble Belarus tractors took place in Alexandria, Egypt, BelTA has learned. The company used to assemble tractors of other producers before. However, the production stopped over time and the plant was abandoned. Last year Belarus reached an agreement with private Egyptian companies to refit the production line at the company with a view to start assembling Belarus tractors. “The modernization of the plant will make it possible to export the goods which will be produced in Egypt. The terms of the free economic zone provide an opportunity for healthy competition in neighboring regions. I think that in a two years’ time it will be an exemplary production facility in our friendly country, Egypt,” MTZ Director General Fyodor Domotenko said.
    In his words, Minsk Tractor Works has undertaken commitments to provide engineering support to the company as a producer of all types of farming equipment. Apart from that, Belarus is ready to train specialists for the plant in Alexandria free of charge.
    The company’s current capacity is 2,000-2,500 tractors a year. There are plans, however, to increase it to 5,000 vehicles a year in the future. At least 30% of the goods will be bound for export. The commissioning of the Belarusian-Egyptian manufacturing facility was an important event for Alexandria, with the local authorities, representatives of the Egyptian ministries and economic zones attending the official opening ceremony.

    (eng.belta.by)

  • Zohr, Atul, North Alexandria fields to start production this year: Petroleum Ministry

    Zohr, Atul, North Alexandria fields to start production this year: Petroleum Ministry

    Minister of Petroleum Tarek El-Molla said that the gas fields of Zohr, Atul, and North Alexandria will start the first phase of production this year.

    El-Molla added in a statement that starting production in these fields will have a positive impact on increasing the production of gas and reducing the gap between production and domestic consumption in Egypt.

    Egypt imports petroleum products worth about $700m per month, at a time when the country is suffering from the scarcity of hard currency.

    Saudi Aramco stopped supplying Egypt with petroleum products since October, despite the agreement between Egypt and Saudi Arabia stating that the latter will secure Egypt’s requirements for petroleum products for five years.

    Italy’s Eni discovered the Zohr field, the largest natural gas field in the Mediterranean Sea, in Shorouk offshore concession back in August 2015.

    A memorandum of understanding was signed on the development of the Atul exploration during the Egypt Economic Development Conference in Sharm El-Sheikh.

    The Atul field was discovered in March 2015 and has proven reserves of 1.5tn cubic feet of gas and 31m barrels of condensates, according to the Ministry of Petroleum.

    El-Molla said during the general assembly of the Belayim Petroleum Company (Petrobel) that the large investments of foreign partners in research, exploration, and production works, especially in the deep Mediterranean waters, confirm the tremendous opportunities available in the Mediterranean region.

    Chairperson of Petrobel, Atef Hassan, said in a statement that the company approved investments worth $834m in the current fiscal year (FY) 2016/2017 to intensify exploration, drilling, and development activities of discovered fields in the Nile Delta and the Gulf of Suez.

    Hassan said that these investments have increased oil and gas production rates of the company’s fields by 30% and they also contribute to conducting new explorations.

    He added that the company adopted investments worth $630m and about $214m under the approved budget for the next FY in order to continue intensifying exploration activities and develop fields.

    (www.dailynewsegypt.com)

  • “Wise Greece”: growing big with social entrepreneurship

    “Wise Greece”: growing big with social entrepreneurship

    Social Enterprises do not aim to make profit but to create jobs– especially at local level- and to improve welfare services delivery. They intervene by taking actions of mild economic growth and contribute to inclusive and sustainable growth.“Wise Greece” operates in the field of social entrepreneurship and has been honoured with the Award for Sustainable Enterprise and Development, based on social responsibility, in the “Startup Greece Awards 2016”contest. In another contest organized in 2015 by the Citizens’ Movement and the Greek Guiding Association, “Wise Greece” was awarded by the President of the Hellenic Republic Prokopis Pavlopoulos with the “Models of Excellence 2015″, for meeting social needs in an innovative way while serving the general interest and common good for the benefit of the community. 

    These distinctions render “Wise Greece” a successful model of a start-up non-profit organization with a double mission: that of selling over 300 top quality Greek food products, as well as raising money for food to be donated to people in need.

    Finding new ways to stimulate forms of active civic participation through an emphasis on social economy, “Wise Greece” aspires to raise awareness and support from responsive consumers around the world, so that they will embrace these high quality products, follow and integrate the healthy Mediterranean diet in their daily lives and, above all, support its cause. It is worth noting that the “Wise Greece” logo is inspired by the Athenian tetradrachm depicting an owl as a symbol of wisdom.

    “Wise Greece” consists of a group of young people who wish to inspire consumers to embrace the beneficial values of the Mediterranean diet, to use Wise Greece products in their everyday lives and contribute to their non-profit mission. “Wise Greece” selects the best Greek products and places them in various retail points around Greece and abroad. The team is supported by specialists in various fields of expertise (Food Specialists, Chefs, Quality Maintenance, Marketing, Sales, etc.)so as to achieve the objectives set by “Wise Greece” and all products are available for purchase online: οlive oil from well known Greek regions, herbs and spices individually selected, jams and sweets made with care from traditional recipes, vinegar, coffee, honey, organic chocolates, wines from local varieties, tsipouro and ouzo, pasta, rusks and cosmetics are some of the “Wise Greece” products that buyers could find in Greece, the UK, Germany, Poland, Lithuania, the Netherlands, Sweden and in New York.

    For every product sold with the “Wise Greece” sticker on it, the producer pays back a percentage of the profit to “Wise Greece”, in order to raise funds to buy food for people in need. The more “Wise Greece” products are sold, the more food products will be donated to Institutions and Organizations that support the homeless, children and the elderly.

    Social innovation and social economy in Greece 

    Social innovation and social economy are relatively new concepts in the country, and it was due to the economic crisis that social innovation became a necessity. Social entrepreneurship was formally recognized through legislation in September 2011, when the law for Social Economy and Social Entrepreneurship was passed by parliament and the distinct legal form of Co-operative Social Enterprises was created. As of January 2015, over 700 Social Cooperative Enterprises have been established.

    In its electoral programme, SYRIZA had highlighted the importance of reviving the co-op movement as a form of social and economic activity for the future, and suggested drawing up a strategy by looking at the most suitable sectors for co-operative development. On October 2016, the Greek Parliament adopted a new law that creates a supportive legal environment for the further development of Social and Solidarity Economy. According to Alternate Labour minister Rania Antonopoulos, the law provides solutions to issues like “funding, tax, social welfare and access to public procurement” and “clarifies the relationship between social economy operators and  the public sector” with a view to establish this new type of economic activity and to combat unemployment.

    In order to improve social economy studies, a new educational programme on social entrepreneurship has been offered by the Athens University of Economics since 2015. The course aims to teach students what Social Economy is, and how they can create their own viable and financially independent social enterprise. In addition, Athens University of Economics and Business is committed to developing socially responsible leaders who can recognize and link profit objectives with social impact opportunities. The Unit of Social Entrepreneurship (USE) is the first research and academic laboratory in Greece with particular emphasis on the advancement of social entrepreneurship nationally and worldwide. It applies managerial disciplines and innovative business practices to drive the entrepreneurial pursuit of sustained social impact.

    (www.greeknewsagenda.gr)