The Greek Community of Alexandria

Tag: Economy

  • EBRD is studying financing five feed-in tariff projects in its 2nd phase

    EBRD is studying financing five feed-in tariff projects in its 2nd phase

    Janet Heckman, managing director for the Southern and Eastern Mediterranean (SEMED) region at the European Bank for Reconstruction and Development (EBRD), said that the bank is currently studying to finance five projects in the second phase of the feed-in tariff projects starting from the second half of this year.

    Heckman told Daily News Egypt that the bank refused to finance the first phase of the feed-in tariff projects due to the domestic arbitration clause, as they wished it to be outside Egypt.

    According to Heckman, EBRD is planning to inject investments worth €1bn in Egypt during the current year.

    She explained that most of the investments will be allocated to small and medium-sized enterprises (SMEs), as well as the private sector projects and the new and renewable energy projects.

    She said that the SME financing portfolio at the bank in Egypt recorded $410bn for 5 local banks, of which $150m have been signed last year.

    She added that the bank is currently studying with a number of Egyptian banks to provide financing lines for SMEs and trade operations.

    Heckman believes that the economic reforms applied by Egypt, including the flotation of the pound, support the competitiveness of Egyptian exports and attract foreign investments.

    Heckman expected that the Egyptian economy will grow by 4% this year, which is the same growth ratio as last year. The bank has invested €700m over the past year.

    (www.dailynewsegypt.com)

  • Trade exchange between Greece and Egypt reached €1.3bn: Pantelis Gassios

    Trade exchange between Greece and Egypt reached €1.3bn: Pantelis Gassios

    Greece intends to increase its commercial cooperation with Egypt. Known for its fabulous cuisine, Greece started with food products, aiming at increasing investments between both countries in this sector.

    Around 15 Greek food companies exhibited their products in the Greek Rowing Club, located in Giza, which included olives, olive oil, honey, cheese, packed products, and other goods.

    To learn more about the current state of Greek-Egyptian economic relations, Daily News Egypt took the opportunity to meet the counsellor for economics and commercial affairs at the Greek embassy, Pantelis Gassios.

    Trade between Greece and Egypt last year reached around €1.3bn. How much of this amount do Greek exports to Egypt represent?

    The Greek exports represented €750m, while Egyptian exports to Greece represented €577m.

    Do you expect any increase in trade in 2017?

    Let me tell you that the trade exchange witnessed a remarkable decrease over the past ten years, mainly because of the drop in the oil prices.

    So both the Egyptian and Greek sides aim to diversify the exchange of products to not depend on oil and its by-products so much, as their prices are always unstable.

    Exporting oil and its products between Egypt and Greece, how much does it represent from the whole amount of exports between both countries?

    In 2016, €492m out of the €750m Greek exports to Egypt were petroleum, oil, and their by-products, while €412m of the €577m Egyptian exports to Greece were crude oil.

    This is why both sides would like to diversify the types of products they are exchanging.

    Recently natural gas fields in the Mediterranean Sea were discovered. It has been stated that Greece and Egypt will hold discussions to sort out this matter. Any comments in this regard?

    It will be Egypt, Greece, and Cyprus, as far as I know; these fields are located in the zone between Egypt and Cyprus.  What governments are working on is to transfer natural gas to the Greek island of Crete and from Greece to the rest of Europe.

    The implementation of energy plants takes time and is difficult. It also involves ports and building underwater pipelines. However, we are very optimistic that it will happen, bearing fruitful results for everyone.

    Are there any possibilities for Greek gas to be refined in Egypt?

    I am reading in the press that there are deals between Egypt and Cyprus to bring natural gas to Egypt—in the form of liquefied natural gas—for the domestic market. So I view this as a great idea.

    What is the amount of Greek investments here in Egypt?

    Official data estimate Greek investments to stand at €800m, according to official figures from the Central Bank of Egypt and Greece. However, there is Greek capital inflow from other countries, like Cyprus. So investments amount to around €1bn.

    What are the types of these investments?

    Cement, paper manufacturing, oil and gas explorations and constructions, food industry, manufacturing of building materials, aluminium, irrigation systems, banking, and training services.

    You mentioned that you would like to diversify exchanging products between both countries and not depend only on petroleum and oil ones. How do you see the future of exchanging food products between both countries?

    The food industry is one of our top industries in Greece. Our food products are being exported all over Europe and also to the US.

    The market in Egypt is very inviting since the population is high, and the country therefore consumes a lot.

    Egypt too is strong in this sector, so we are also inviting Egyptian counterparts to invest in this sector in Greece.

    I consider it a very promising sector concerning investments from both sides, and I believe it would be a win-win investment.

    Recently the International Monetary Fund granted Egypt a $12bn loan. The Egyptian government is working on economic reforms. Is Greece taking this into account regarding further investments?

    Greece is very aware of the reforms Egypt is undertaking. Changes are painful but necessary. However, in terms of a long-term vision, the changes made by the Egyptian side are going in the right direction.

    Greece is famous for its production of mcetkh. What is the top Arab importer of it?

    We use mcetkh in many things, including cooking and making sweets. I can say that Saudi Arabia is one of the top importers worldwide for Greek mcetkh—they use it in many of their products.

    (www.dailynewsegypt.com)

  • Egypt Plans to Implement ‘Electronic Visa Application System’ to Attract More Tourists

    Egypt Plans to Implement ‘Electronic Visa Application System’ to Attract More Tourists

    In a step that aims to facilitate visa procedures to tourists, Egypt’s Interior Minister Magdy Abdel-Ghaffar met with Telecommunication Minister Yasser Al-Qady to discuss the development of a new system that will allow issuance of electronic visas.

    The step is expected to positively affect the tourism sector and the rate of incoming tourists to Egypt, as it will facilitate the procedures of obtaining the Egyptian visa.

    President Abdel Fattah Al-Sisi ordered to accelerate the implementation of the E-Visa system during his meeting with the Supreme Council for Tourism. Travelers will be able to obtain their Egyptian visa through an online system that will speed up the procedures for obtaining visas and smoothen the process undertaken in the airports upon their arrival.

    Abdel-Ghaffar said the Interior Ministry is keen on implementing the new system and also upgrade the security technological systems it has. Al-Qady stressed the importance of the cooperation between the two ministries in order to achieve the highest quality possible of services for foreign nationals in Egypt.

    Member of Parliament Mohamed Al-Massoud said the E-Visas system will help boost tourism in Egypt.

    (egyptianstreets.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)

  • 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)