Egypt Private Sector Country Profile
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Egypt Private Sector Country Profile 2009 African Development Bank Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pagei Egypt Private Sector Country Profile 2009 Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pageii This report was prepared by a team of experts from Sabaudia Consulting, including Mrs Cordet-Dupouy, team leader and Ms. Soliman, private sector expert in collaboration with the AfDB Regional North I Department (Vincent Castel, Yasser Ahmad, Hedi Bchir), the AfDB field office in Egypt (Almaz Amine, Gehane El Sokkary, Tarek Ammar) and members of the AfDB country team for Egypt (Edith Laszlo, Rolf Westling). The report was edited by Cyprian Akoekokobe Kebbianyor and laid out by zaza Création. This report reflects the opinions of the authors and not those of the African Development Bank, its Board of Directors or the countries they represent. Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pageiii Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pageiv Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pagev Egypt Private Sector Country Profile - 2009 Foreword he African Development Bank (AfDB) Group Four years later, with the fast development of Taims to become the “Premier Knowledge Bank Egypt’s economy it became necessary to revisit for Africa,” cementing its role as a leading change our analysis. This report--“2009 - Private Sector agent for sustainable socio-economic development Country Profile”--thus provides an update on the to the continent. Recognizing the importance of developments since 2005. It takes into account generating, mobilizing, sharing, and applying important economic and financial changes that knowledge, the Bank is continuously strengthening have occurred in Egypt, including the impact of the its analytical capacity, building partnerships, and 2008/2009 global financial and economic crisis. developing collaborations with universities, think- The report highlights the numerous progresses tanks, and relevant external institutions. Through made as well as the challenges facing the country enhanced knowledge dissemination and sharing, in the coming years. the Bank also aims at strengthening its operational and development effectiveness. We believe that the report will provide entrepreneurs, investors and decision and policy makers with As part of this process and to support one of the comprehensive information on the Egyptian leading private sector reformers in Africa, the AfDB economy, the business climate, current economic prepared in 2005 a first “Private Sector Country reforms and the private sector itself. We are Profile” for Egypt. The report reviewed the country’s confident that this report will assist decision progress in terms of macroeconomic performance, makers in refining their private sector development government policies and support to private sector strategy and make an effective and useful growth. The report also took stock of the support contribution to the Egyptian economy. from international agencies with a close look at AfDB activities and provided an analysis of the private sector’s prospects for the future. The Aloysius Uche Ordu report, in concluding, outlined a strategy to Vice President for Operations I - Country support private sector development, in terms of and Regional Programmes and Policy technical assistance and financial support. African Development Bank Group v Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pagevi Egypt Private Sector Country Profile - 2009 vi Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pagevii Egypt Private Sector Country Profile - 2009 Preface rivate sector development in Africa is an which has helped Egypt to weather the worst Pimportant element of economic development ramification of the 2008-2009 financial crisis. and an engine for strong and sustained growth, employment creation and poverty reduction. In this The report also cautions that further growth of the spirit, the government of Egypt, has since 2004, private sector is contingent on the removal of several intensified the economic reforms started in the obstacles including streamlining bureaucracy and 1970s. Considered as one of the world’s top private minimizing judicial bottlenecks. Furthermore, the sector reformers, the country has significantly lack of access to finance by small and micro- improved its business climate in recent years. Such enterprises and for the development of public- efforts have resulted in private sector led economic private partnerships in addition to the lack of skilled growth stimulated by a sharp rise in foreign direct workers and professionals is limiting the ability of investments. In turn, Egypt has experienced robust the private sector to expand further. economic growth over the last decade with an increasing contribution of the private sector. In this regard, the report provides suggestions in terms of the role that the donor community can The 2009 Private Sector Profile on Egypt provides play for the country to overcome these a snapshot of the country’s private sector activities challenges. The report further illustrates the need in recent years including a liberalized and stable for a clearly defined global strategy to support foreign exchange regime; lowering and simplification the business environment. of external tariffs and taxes. The country has further continued the privatization of public enterprises, eased business procedures and established an Jacob Kolster open policy towards private investments in Director Regional Department North I infrastructure. As a result of these changes, the (Egypt, Libya, Tunisia) private sector in Egypt is increasingly diversified - African Development Bank Group vii Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pageviii Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pageix Egypt Private Sector Country Profile - 2009 List of acronyms AfDB African Development Bank ACDIMA Arab Company for Drug Industries & Medical Appliance AMOC Alexandria Mineral oil Company ATM Automatic Telling Machines BOT Build, Operate, Transfer BOOT Build, Own, Operate, Transfer BSAC Business and Analysis Centre CBE Central Bank of Egypt CAA Central Auditing Agency CAI Cairo International Airport CASE Cairo & Alexandria Stock Exchange CAPMAS Central Agency for Public Mobilization and Statistics CGC Credit Guarantee Company for Small and Medium Enterprises CIB Commercial International Bank CIDA Canadian Development Agency CDPF Canadian Developing Programming Framework CMA Capital Market Authority CMO Cairo Metro Organization COMESA Common Market for Eastern and Southern Africa ECC Egyptian Cement Company ECHEM Egyptian Petrochemical Holding Company EDB Export Development Bank EEHC Egyptian Electricity Holding Company EFSA Egyptian Financial Supervisory Authority EGPC Egyptian General Petroleum Corporation ESBC Egyptian Small Business Centres EGAS Egyptian Natural Gas Holding Company EID Egyptian Institute of Directors EIP Egyptian Investment Portal EIPICO Egyptian International Pharmaceutical Industries Company ECES Egyptian Center for Economic Studies EDF Electricité de France EGP Egyptian Pound ERF Economic Research Forum EOS Egyptian Organization for Standardization and Quality Control FDI Foreign Direct Investment GAFI General Authority for Investments and Free Zones GATT General Agreement on Tariffs and Trade G & S Goods & Services ix Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pagex Egypt Private Sector Country Profile - 2009 GOE Government of Egypt GOIEC General Organization for Import and Export Control GOFI General Organization for Industrialization GDF Gaz de France GDP Gross Domestic Product GDR Global Depository Receipt GST General Sales Tax GUPCO Gulf of Suez Petroleum Corporation GTL Gas to Liquid HEIA Horticultural Export Improvement Association ICT Information and Communication Technology IFC International Finance Corporation ILO International Labour Organization IMP Industrial Modernization Program IPO Initial Public Offering ITC Industrial Technology Centre LNG Liquefied Natural Gas MFI Micro Finance Institution MOI Ministry of Investment MPC Monitoring Policy Committee MTI Ministry of Trade and Industry MCIT Ministry of Communication and Information Technology NBE National Bank of Egypt NGO Non Governmental Organization NGL Natural Gas Liquids NAT National Authority for Tunnels NSGB National Société Générale Bank NTRA National Telecom Regulatory Authority OCI Orascom Construction Industries OTC Over The Counter PAFTA Pan Arab Free Trade Area QIZ Qualified Investment Zones RTGS Real Time Gross Settlement SEDICO South Egypt Drug Industry Company SFD Social Fund for Development SIDPEC Sidi Kerir Petrochemical Company SIS State Information Service SME Small and Medium Enterprises SSH Sharm El Sheik Airport TB Treasury Bill TCF Trillion Cubic feet TFR Total Fertility Rate TRIPS Treaty for Intellectual Rights Protection System UNIDO United Nations Industrial Development Organization UNDP United Nations Development Program USAID United States Agency for International Development VAT Value Added Tax WB World Bank WTO World Trade Organization x Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pagexi Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pagexii Brochure Egypt Anglais:RAP AEC 2008 anglais Vincent 28/05/10 12:51 Pagexiii Egypt Private Sector Country Profile - 2009 Table of contents Introduction