Egypt Eyeing Larger Economic Presence in Africa
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18 December 17, 2017 Economy Egypt eyeing larger economic presence in Africa Ahmed Megahid glecting ties with Africa. Its absence occurred while regional political and economic rivals, including Turkey, Cairo Iran, Qatar and Israel, gained influ- ence. gypt signed deals and Egypt expressed concern it could memoranda of under- lose some rights, including to a standing with African gov- fixed share of Nile River resources, ernments during the Africa the primary source of water for its 2017 Forum: Business for population. When Ethiopia began EAfrica, Egypt and the World to ease construction of a multibillion-dollar trade and open the door for invest- hydroelectric dam on the Nile in ing. 2011, a project that will significantly “The event gave us a good chance reduce the water flow into Egypt, to give information to African busi- few African countries were ready to nessmen about investment opportu- back Egypt in its opposition to the nities available in our country,” said project. Egyptian Investment and Interna- “This experience has taught us tional Cooperation Minister Sahar that we can run at even more cata- Nasr. “It also helped African govern- strophic losses if we do not mend ment officials attending to bring to fences with the Africans,” said writer light sectors crying for investment in Sakina Fouad. “Egypt enjoys a lot of their countries.” advantages that make its rapproche- The conference at Sharm el- ment with fellow African countries Sheikh, which was sponsored by rewarding to all sides.” Egyptian President Abdel Fattah al- Even with Ethiopia, the country Sisi, allowed the exchange of exper- with which Egypt is locked in what tise and the initiating of investment appears to be unending and unfruit- partnerships. ful negotiations, Cairo wants to ex- Puzzled. French President Emmanuel Macron (C) greets Tunisian President Beji Caid Essebsi as he “Africa is badly in need of invest- pand economic cooperation. arrives at the Elysee Palace in Paris, on December 11. (AFP) ments and trade,” said Rashad Abdo, During the conference, African an economics professor at Helwan government officials visited major University. “These are the two things Egyptian industrial projects, includ- that will enable the Africans to move ing ceramic and textile factories. ahead with development and make African government officials were EU ‘tax haven’ blacklist the best use of their economic ca- shown tourist projects in Sharm el- pacities.” Sheikh. Most of the deals signed during the Egypt has been trying to claim an conference focused on easing trade influential position on the African raises questions about between African countries. The Af- economic stage since 2015 when it rican Export-Import Bank (AFREX- united Africa’s main economic and IMBANK) and the Attijariwafa Bank trading blocs, namely the Common signed an agreement to encourage Market for Eastern and Southern Af- Europe’s support for Tunisia trade between African countries rica, the Southern African Develop- and finance development projects in ment Community and the East Afri- Africa. The Egyptian Export Devel- can Community. opment Bank and AFREXIMBANK The 26 members of the blocs have Lamine Ghanmi ism. The country’s tourism sector tional Anti-Corruption Authority signed an agreement to support the a combined gross domestic product suffered a major setback after ter- (INLUCC). “Tunisia is not a paradise export of Egyptian goods to African of $1.2 trillion and markets that con- ror attacks in 2015 and phosphate for those attempting to avoid taxes markets. tain 620 million consumers. Tunis exports have been slowed due to or launder money. Tunisia would In 2016, Egypt’s trade with Africa These are the consumers Egypt strikes and protests this year. have benefited economically and amounted to $5.4 billion, including has an eye on as it tries to gain ac- eading Tunisian politi- Tunisian analysts blamed author- financially if it were a tax paradise. $2.9 billion in Egyptian exports to cess to African markets, economists cians and business officials ities for failing to take preventative Some countries that are indeed tax African countries. said. Sisi has been trying to convince are lobbying to have Tuni- measures ahead of the EU decision, havens are not on the blacklist.” The Africa 2017 Forum took place African leaders to develop a modern sia removed from the Eu- which had been in the works for He said Tunisian institutions had as Egypt demonstrates growing in- road network between African coun- ropean Union “tax haven” more than a year. not done “enough to defend the terest in strengthening economic tries to ease the movement of people Lblacklist that alleges that 17 coun- “The news that Tunisia is black- country’s business interests.” ties with the continent. Cairo is mov- and goods. tries fail to meet EU tax guidelines. listed hit the business community Top government officials said ing away from strategies in which Rampant unrest, the lack of the in- The blacklist announcement like a lightning strike,” said econo- they hoped Tunisia would soon be Africa was at the bottom of the list frastructure and the primitive nature shocked many in Tunisia, which mist Marouen Achouri, “but two removed from the blacklist. of geographic zones for promoting of economic systems in some coun- has counted on the European Union questions emerged in its wake: Tunisian President Beji Caid business. tries remain major stumbling blocks for support as it faces economic and Why has Europe, which pretends Essebsi urged France to support Tu- “Egypt’s economic strategies as Egypt tries to increase business social hardships during its demo- to stand with Tunisia with its sup- nisia’s removal from the list during were focused on Europe, the United on the continent, economists said. cratic transition. port, taken such a decision? And a meeting December 11 with French States and the Arab world for many “This is why events that bring Three basic criteria were said how have Tunisians hit such a rock President Emmanuel Macron in decades in the past,” said Farag Ab- Egyptian and African businessmen to have been used to compile the bottom?” Paris. del Fattah, an economics professor together are important,” Abdo said. blacklist: tax transparency, fair tax Achouri blamed government “We do not fathom the aim be- at Cairo University. “It has, however, “They help local businessmen test competition and the implementa- infighting for the inadequate re- hind such decision,” Caid Essebsi realised that dropping Africa off the the waters before investing in Afri- tion of the Base erosion and profit sponse. said during a news conference with economic priority list was not a cor- can countries.” shifting (BEPS) framework — stand- “No one can say they are really Macron. “Tunisia does not merit rect decision.” ards devised by the Organisation in charge of the government on ne- being put on this list. We deem that Egypt has paid dearly, on both Ahmed Megahid is an Egyptian for Economic Cooperation and gotiations of international financial this decision hurts the image of Tu- economic and political levels, for ne- reporter in Cairo. Development (OECD) to curb tax issues. There are several at various nisia at a time when we are working avoidance. ministries dealing with such is- to establish a state of the 21st cen- Other countries listed include the sues,” he said. tury. United Arab Emirates and Bahrain The European Union’s tax ha- “Because of the notion of criteria in the Middle East. There were a se- ven investigation began in Septem- or because of a tardy reply, we are ries of small island countries on the ber 2016 after leaked documents mixed in with bad company. We blacklist but also South Korea and known as the Panama Papers de- will do our utmost to make the poli- Mongolia. tailed how wealthy individuals and cymakers rescind their decision on The EU announcement is unlike- businesses used offshore accounts Tunisia,” Caid Essebsi added. ly to have an immediate effect on to avoid taxes in havens such as the Tunisian Prime Minister Youssef the Tunisian economy but it puts US Virgin Islands, the Bahamas and Chahed spoke with European Com- the government on the defensive Panama. mission President Jean-Claude while trying to renew foreign inves- The investigation’s results were Juncker to plead Tunisia’s case. To tors’ interest in the country. hotly disputed by Tunisian offi- shore up Tunisia’s lobbying efforts, Tunisian analysts and commen- cials, who insist the country should Parliament Speaker Mohamed En- tators said the move went against not be included on the list. naceur formed a joint parliamen- previous EU pledges and state- “Considering Tunisia as be- tary committee to connect with the ments. ing a tax haven is unjust,” said European Parliament to back Tuni- “Putting the country on the (EU) Chawki Tabib, president of the Na- sia. tax-haven blacklist is an enormous Tunisia has offered tax incentives slap. It is all the more hurtful that it for offshore businesses since the came from a strategic partner,” said Tunisian analysts and late 1970s when the country adopt- economist Houcine Ben Achour. commentators said ed a development strategy aimed Tunisia, which has been hailed putting Tunisia on the at increasing exports. The offshore as the only democratic success of “tax haven” blacklist regime is regulated by the country’s the “Arab spring,” is sensitive about Investment Incentives Code. its reputation abroad because its goes against previous Export-related economic ac- New partnerships. Egyptian Minister of International Cooperation economy depends to a large extent EU pledges and tivities employ about 400,000 Sahar Nasr speaks during the closing session of the Africa 2017 on foreign investment and tour- statements. Tunisians. Forum in Sharm el-Sheikh, on December 8.