SPECIAL ADVERTISING SECTION SPECIAL ADVERTISING SECTION

At a Glance: Egypt’s $8 bn FDI investment in 2019.

of the Connection % world’s trade 10 Passes through the Egypt’s AFTER DECADES OF NEGLECT, EGYPT IS REVIVING Suez Canal. ITS IDENTITY AS AN AFRICAN NATION AND PIVOTING TOWARD THE CONTINENT. 300,000 Egyptians graduate from University every year.

gypt’s assumption of the presidency African Unity in 1963, relaunched in 2002 as In practice, such agreements are yet to bear of the 55-member African Union in the African Union to refocus attention from fruit. Data from the U.N. Conference on Trade February 2019 marked a turning decolonization toward increased cooperation and Development show that intra-African point in the country’s relationship and integration to drive growth. trade, defined as the average of intra-African with Africa. At a time when the continent exports and imports, stood at just 2% of total Ehas been attracting attention on all fronts— Since then, however, Egypt has made only African trade during the period 2015–2017, from former colonial powers leveraging sporadic commitments to the continent. On compared with 47% for America, 61% for Asia paper, it is a member of the Common Market and 67% for Europe.2 As a result, the continent In partnership with their historical ties to new investments by the Middle East’s oil-rich monarchies, amid for Eastern and Southern Africa (COMESA), has missed out on the economic booms that an influx of Chinese contractors—Egypt is one of a number of African trade agreements. It other trade blocs have experienced in recent mobilizing from within. is also one of more than 40 countries that have decades. ratified the African Continental Free Trade Area The country last held the annually rotating (AfCFTA)—created by the African Free Trade What this means is that access to a vast presidency to raise its profile as an African Agreement—which would see COMESA merge economic bloc—indeed, to the world’s nation more than half a century ago. Then- with other African trade blocs to create the youngest continent3—with limited trade barriers leader Gamal Abdel Nasser played a world’s largest free trade area. According to offers a plethora of opportunities for Egypt’s central role in influencing Africa’s nationalist an IMF report in May1, once fully implemented, new policy of rapprochement. movements in their fight for independence from the agreement would cover all 55 African European colonial rule. Egypt was a founding countries, with a combined GDP of $2.2 trillion Egyptian involvement in Africa is already member of the pan-African Organization of and a market of more than 1.2 billion people. expanding. Tanzania’s $3 billion dam on the

1 www.imf.org 2 unctad.org 3 www.weforum.org SPECIAL ADVERTISING SECTION SPECIAL ADVERTISING SECTION

the need for face-to-face Rufiji River is being built by two Egyptian In the banking sector, CIB, Egypt’s largest interaction in branches. contractors, for example, while financial private-sector bank, established a presence in Q&A services firm EFG Hermes has a strong Kenya this year5, acquiring 51% of Mayfair CIB How is CIB positioning itself brokerage presence in the local markets in Bank Limited. Its first cross-border operation, for growth in a post-Covid Kenya and Nigeria. More private capital is the move is in line with CIB’s mandate to Hussein world? on its way; Egyptian food producer EDITA explore and assess opportunities in Africa, We need to ensure we are is in the process of building a snack food building a bridge for Egyptian customers agile and nimble as an manufacturing facility4 in Morocco. to benefit from regional integration efforts organization, and able to across the continent and from the prospects Majid Abaza harness shifts in technology Encouraged by high growth rates coupled with available through COMESA and AfCFTA. CIB CEO OF COMMERCIAL and respond to the evolving underdeveloped infrastructure, particularly in brings its technical expertise, experienced preferences of clients in all power, water and rail, Orascom Construction know-how and vast correspondent banking INTERNATIONAL BANK segments. In a post-Covid is increasing business in untapped markets network, while Mayfair Bank, via its existing world, we will continue to in the continent. The company has begun shareholders, will provide the local knowledge expand our digital offerings. constructing the Jiji and Muluembue and navigation vital to success. The bank’s Commercial International the influx of new users. We We have embraced the al- Hydropower Plants in Burundi, scheduled to aim is to widen the trade corridor between Bank, Egypt’s biggest created offline requests to phabet of the future—ABCD: be completed by 2023, and on the Ivory Coast, Egypt, Kenya and neighboring countries private lender, is leading allow clients to perform more artificial intelligence, block- its partially owned Besix subsidiary is building and facilitate the presence of Egyptian and digital transformation in transactions through online chain, cloud and data. The one of the largest water treatment plants in international corporations with interest in Egypt’s banking sector. and mobile banking services, future is digital and remote West Africa. Kenya, while contributing to the growth of Since the pandemic, the significantly reducing the banking. number of trips customers bank has introduced a 4 en.yabiladi.com comprehensive suite of have to take to our branches. 5 www.theafricareport.com digital payment solutions CIB is also constantly At a Glance: CIB that reduce the need to use developing payment services cash and visit branches. through its mobile applica- tion, CIB Smart Wallet, for How has the pandemic both banked and unbanked m segments of the population, 1.4+ accelerated innovation? Our early adoption of digital allowing them to pay bills, Clients banking has been invalu- buy from merchants using QR able in ensuring business codes, shop online and send continuity and has served as money to other wallet holders a crucial advantage as we in Egypt with relatively low responded to the restrictions fees. 6,900 and changes caused by the Employees pandemic. We have been How has CIB’s operations at the forefront of Egypt’s been affected? financial inclusion efforts with CIB ranks No. 1 for domestic the national Meeza prepaid digital transfers and govern- EGP bn and debit cards, which allow ment e-payments, and has a 122 customers to withdraw cash market share of 25% in both from ATMs, conduct purchas- internet and mobile banking. Market Cap es and perform e-commerce A large number of custom- transactions. ers were using digital prod- ucts before the pandemic, Tell us some key initiatives eliminating the Covid adop- 207 We enhanced our existing tion stage and reducing the platforms to accommodate number of issues faced, and Branches SPECIAL ADVERTISING SECTION SPECIAL ADVERTISING SECTION

Q&A Kenyan corporates and SMEs. Banque du as part of Egypt’s Vision 2030 sustainable What have been key Caire, meanwhile, has established a subsidiary development strategy, the zone has four achievements in 2020? in Uganda as it seeks to expand its presence industrial areas and six seaports, and ongoing Tarek Fayed The bank continues to across the continent6. port expansion will enable it to take better achieve positive results and advantage of the 18,000 ships that use the CEO OF BANQUE record strong growth rates. Egypt, bolstered by its advantageous canal annually. The net interest margin (NIM) location, is also positioned as the gateway DU CAIRE increased to 5.9% recording to Africa through trade and technology, The country looks to enhance its intra-African EGP 7.5bn in Q3 2020, com- strong international and domestic transport relations, the Suez industrial and logistical pared to EGP 6bn or 5.1% links, existing trade agreements and its hub is expected to create value chains across The undeniable impact of Banque du Caire (BDC), one in the same period in 2019, megaprojects, such as the new administrative the continent, becoming a manufacturing Covid-19 on the banking sec- of Egypt’s largest banks, reflecting a growth rate of capital and developments at the Suez Canal. and exporting base for commodities and tor has accelerated the adop- operates a network of 240 25%. The bank will continue raw materials from the region. Thanks to its tion of digitalization, as the branches and banking to implement its precaution- The canal, through which almost 10% of pan-African trade agreements, Egypt has the CBE launched several initia- units that serve some 3 ary policy, by strengthening world trade passes7, connects Europe to potential to attract large pools of public- and tives to entice banks to move million customers across allocations for credit losses Africa, and Asia to Africa. This geo-economic private-sector investment from all over the forward with more digital ser- the nation. The state-owned with the addition of about EGP advantage is set to be further boosted by the world to drive new business in the continent. vices, especially with regard lender is recognized for 1.7bn, which led to achieving 460-square-kilometer Suez Canal Economic to electronic payments. That its pivotal role in injecting net profits about 2.52 billion Zone, which aims to bring in foreign investment For international investors, Egypt’s attraction was coupled with the new liquidity to support the despite the repercussions of for export-oriented industries and transform the goes beyond its strategic geographical CBE law that introduced sev- national economy across the Covid 19 epidemic. country into a global logistics hub. Established location. About half the country’s 90 million eral technological and digital all sectors, with a focus on small, medium and large means that will help with the Banque du Caire has targeted 6 www.kampalapost.com enterprises. digital transformation of the high growth rates across 7 www.reuters.com banking and financial sector various sectors during 2020, in Egypt. How has the sector strengthening its role in retail The Central evolved? banking, arranging financing Bank of Egypt (CBE) has How has Covid-19 impacted for megaprojects and secur- made comprehensive All three rating the economy? ing SME funds. efforts to strengthen the agencies—Standard & Poor’s, Egyptian banking sector. Moody’s and Fitch Ratings— A restructuring program, reaffirmed Egypt’s sovereign partially built on the basis of evaluation and credit rating At a Glance: Banque Du Caire having well-capitalized banks, thanks to economic reforms facilitated consolidation and carried out by the government M&A to improve fundamentals that allowed for a rapid and m among the nation’s financial effective response in dealing 3 institutions. with the coronavirus outbreak. Customers The other pillar was reforms These reforms have been to improve operating and accompanied by a massive credit conditions, along with increase in spending on supporting the economic health care; the expansion recovery. CBE initiatives to of cash transfer programs to 240 improve the business environ- include a larger number of Branches and banking units ment include liberalizing the beneficiaries; and, in accor- currency; a financial inclu- dance with the CBE initiative, sion program that supported the creation of new programs SMEs and other, non-banked to support seasonal workers EGP bn customers; and legislative whose daily earnings 194 amendments, such as ratify- have been decimated by ($12.32 billion) in assets ing the New Banking Act. the crisis. SPECIAL ADVERTISING SECTION SPECIAL ADVERTISING SECTION

people are under the age of 30, and its young U.S. and Europe retreated, FDI numbers and educated workforce provides a well- have improved, hitting almost $8 billion in Orascom Construction is trained and highly competitive talent pool. 2019, a trend that should gain pace going a leading global engineering Q&A Each year, approximately 300,000 Egyptians forward. and construction contractor graduate from university—around 200,000 as active in the Middle East, trained engineers, and 15,000 with European Macroeconomic stability is being restored Africa and the U.S. The Osama Bishai language skills. IT and telecom, energy, thanks to an IMF program the nation company enjoys a leader- building materials and pharmaceuticals are embarked on in 2016, which the institution ship position in all major CEO OF ORASCOM CONSTRUCTION particularly strong skillsets among graduates8. has hailed as one of its most successful segments of the construc- ever. The government won praise from tion industry. The country has long been known as a regional international investors for enacting tough a depot. The second, 42 km efforts and Egypt’s solid net exporter of educated and skilled labor, but reforms, supported by a $12 billion IMF loan How has Covid-19 impacted line will connect the market fundamentals have as the economy expands, young Egyptians package that concluded in November 2019. operations? The safety and Governorate to allowed us to secure a sizable are increasingly opting to stay in their home The three-year program focused on reviving well-being of our people and City and have 12 stations and inflow of high-quality projects country. Their passion and creativity, together the economy, and included a significant communities have always a depot, the first public trans- and maintain a healthy with legislative support, is seeing Egypt currency devaluation that is making been our top priority, and we port link between the cities. project pipeline. aggressively staking its claim as one of the Egypt an attractive hub for re-exports for took a number of immediate We are also involved in We expect continued invest- world’s fastest-growing entrepreneurial hubs9. multinationals. steps to ensure precaution- building a range of infrastruc- ment across multiple sectors, ary measures at our sites and ture and commercial projects including water, transporta- Covid’s impact notwithstanding, Egypt’s Now that its African Union presidency offices in accordance with the for two new cities, the New tion, healthcare, new cities economic climate has remained positive. In has come to an end, Egypt’s mission is to highest standards. Administrative Capital and Al and data centers. We also 2019, the country’s GDP grew at the highest maintain its focus on Africa. In a post-Covid We have reinforced our Alamein; the former includes anticipate more involvement rate in a decade10. And foreign capital that environment, where developed countries focus on important elements a 537m2 opera house and from the private sector in the was lost after the revolution in 2011—which are struggling with low growth and of our business, including cultural center, an Olympic development of infrastruc- was followed by regime change and terror unemployment, the time is ripe to continue project execution and con- stadium and large-scale ture, through public-private attacks—is returning. Although annual foreign this pivot toward emerging markets, to trols, cash preservation and government buildings. partnerships and build-own- direct investment (FDI) halved to around $5 connect all the African countries and collection and cost optimi- The Group is building one operate structures. billion in the past five years compared with $10 increase trade between them. Egypt has zation. We continue to be of the largest water treatment billion seen in 2005–2010, as investors from the a vital role to play in the region in 2021. vigilant, and are confident in plants in the world with a the long-term fundamentals of capacity of 5 million m3/day, At a Glance: Orascom our markets. and one of the largest waste- Construction 8 www.investinegypt.gov.eg 9 www.wamda.com water treatments plants in 10 data.worldbank.org Can you tell us about the Egypt that will serve 6 million Grand Egyptian Museum people. In 2019, we delivered k project? The GEM is an the first renewable energy 60 iconic project that will house project of its kind and size in Employees worldwide Egypt’s civilization of over Egypt—the Wind 5,000 years. Once inaugu- Farm, with a capacity of 262.5 rated next year, it will be MW. the largest archaeological $ bn museum in the world. What is the outlook for 5.3 construction next year? Backlog What other key megaproj- Egypt is the Middle East’s ects are planned? The Cairo most populous nation, with Notable projects: Monorail will be the world’s more than half its people Water mega projects longest monorail system. The under the age of 30 and Greater Cairo Metro first monorail line will extend significant requirements for World’s longest monorail project 54 km from East Cairo to the infrastructure and industrial Grand Egyptian Museum New Administrative Capital investment. Our competitive Two mega combined cycle and have 22 stations and edge, business development power plants, 4.8 GW each