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OUT OF OUT OF GAS OF OUT
GASThe energy crisis comes to a head
ALSO INSIDE: ▲ ▲ FISH FARMS GROW UP ▲ ▲ HOMES FOR THE MASSES ▲ ▲ A TASTE OF BRAZIL APRIL 2014 APRIL
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Cover Story 28 In the dark
With Egyptians poised to elect anoth- er new president, the power crisis is more serious than ever. Experts say the country can no longer afford to postpone painful but necessary struc- tural changes to its energy policy.
Cover Design: Nessim N. Hanna
Inside 16 12 Editor’s Note
14 Viewpoint
The Newsroom
16 In Brief The news in a nutshell
20 Region Notes News from around the region
© Copyright Business Monthly 2013. All rights reserved. No part of this magazine may be reproduced without the prior written consent of the editor. The opinions expressed in Business Monthly do not necessarily reflect the views of the American Chamber of Commerce in Egypt.
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23 44
46 Market Watch Executive Life 36 Stock Analysis 44 Dining Out Liquidity-driven market buoys Lovely Mirai tries a little too hard investors
37 Capital Markets 46 War dance A glance at stocks & bonds Egypt’s growing capoeira scene
39 Money & Banking Forex and deposits
40 Key Indicators The economy at a glance In Depth 41 Egypt-U.S. Trade The Chamber Imports and exports 22 Fish farms seek to 50 Events hook new markets Corporate Clinic Local industry targets upscale, Member News Help wanted 54 overseas niches 42 The global unemployment crisis 62 Announcements 25 Government mega-projects spark hope, skepticism 63 Classifieds New plans for low and middle-income housing 64 Media Lite An irreverent glance at the press
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Editor’s Note
Director of Publications & Research DADDY ISSUES Khaled F. Sewelam Editor-in-Chief Rachel Scheier ppearing for what he said would be the last time in his brown camouflage Army uniform, Field Marshall Abdul-Fattah El Sisi announced on state tel- Assistant Editor evision March 26 that he was quitting the military to run for Egypt’s highest Maggie Hyde office. Without providing any details on his programs or policies, Sisi Aacknowledged that the country faced “large challenges,” including mass unemployment Contributing Editor and a weak economy. “This is unacceptable,” he said. Tamer Hafez It is virtually a foregone conclusion that Sisi will win. Egyptians weary of three plus years Staff Writer of social and political turmoil are betting that a pragmatic military strongman is their best bet Mat Wolf for a return to more prosperous times. “Sisi is like our father,” a shopkeeper in downtown Cairo recently told The Christian Science Monitor. “Our economy is bad, and things are hard, Art Director but we know that he will treat us well and do the right thing.” Nessim N. Hanna There is no doubt that security and stability will have a positive impact on the economy. But displays of strength will not fix the structural problems that have brought Egypt to the brink Contributing Writer of financial disaster. At the root of this quagmire is a decades-old crony capitalist system and Michael Braha an indiscriminate energy subsidies framework that mostly benefits the wealthy. As Maggie Photographers Hyde writes in this month’s Cover Story, such subsidies have ballooned to consume around Alfred Alfons, Soha El Gabi one-fifth of the budget, contributing to a power shortage that is hobbling industry and forcing Said Abdelmessih Egyptians to cope with regular blackouts, posing a serious challenge to the country’s prospects for economic recovery. On March 30, Egypt’s finance minister said that the current LE 130 Production Supervisor billion energy subsidies bill would grow next by 10 to 12 percent next year unless something Hany Elias is done immediately. Officials have been talking about reforming Egypt’s bloated energy subsidies regime for Advertising Director years, but thus far, its leaders have been unwilling to spend the political currency necessary to Amany Kassem do so. President Anwar Sadat’s attempts to lift food subsidies in the 1970s infamously sparked Advertising & Circulation Assistant riots. Mohamed Morsi’s failure to articulate any coherent economic strategy culminated in the Raghda Salama fuel shortages and power cuts that spurred last summer’s mass protests, ultimately ending in his removal. More recently, the interim government has relied upon generous aid from the Market Watch Analyst Gulf to mask gaping deficits. The welcome infusion of cash from Arab neighbors has no doubt Amr Hussein Elalfy kept the economy afloat, but economists point out that it has also enabled Egypt to postpone making the hard policy choices the country desperately needs. Chamber News Contacts A number of nations have successfully overhauled costly energy subsidies to channel Nada Abdalla, Nihal Alaa, resources to those who truly need the state’s help. Countries like Ghana and Brazil successfully Shorouk Genena, Salma Shaaban combined public education efforts with social benefits that compensated the needy in the face of rising energy prices to successfully phase out subsidies. In 2010, the Iranian government replaced most power subsidies with monthly cash transfers to citizens—a strategy that not only saved the government billions but re-routed the bulk of state spending to target the poor instead of the rich. One thing is certain—whoever becomes Egypt’s next president must take action to address the country’s fiscal realities and promote lasting growth. In announcing his candidacy last month, Sisi told his fellow Egyptians that “we are all in the same boat.” This may be the last U.S. address: 1615 H Street, NW • Washington, D.C. 20062 Please forward your comments or suggestions to the Egypt editorial office: chance to turn it around. Business Monthly RACHEL SCHEIER American Chamber of Commerce in Egypt 33 Soliman Abaza Street, Dokki 12311 • Cairo • Egypt Tel: (20-2) 3338-1050 • Fax: (20-2) 3338-0850 E-mail: [email protected] www.amcham.org.eg/bmonthly
CTP and printing: Sahara Printing Company, SAE – Nasr City Free Zone
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Viewpoint THE NEEDED AND THE NEEDY
he needed receive what they ask for, which time is definitely right; the advantages of the location are might be what they deserve and is sometimes uncontested, and youth momentum has never been more than they are worth. The needy get stronger. The whole neighborhood is messy. Egypt rela- whatever others are willing to give them, tively has remained credible in the midst of failed states, which might be less than they are worth. demolished economies, destructive ideologies and divided TPublicly, the needed are respected while the needy are countries. The West has realized this state of affairs and often treated in a condescending manner. To be needed, you has no choice but to act accordingly, and those to our east must be qualified, in the right place at the right time and dif- are terrified; they want to maintain Egypt as a buffer and a ficult to replace. This theory applies to individuals, organiza- bastion of stability. Their livelihoods are tightly linked to tions and states. The most comfortable negotiating position is our future in spite of the fact that the financial and cultur- having something the other party wants badly enough to make al gaps between us are enormous. Traditionally, we are concessions to get it. cultural leaders in the Arab world; Egyptian educators, As a patriot, I am tired of being needy; I am sorry to be movie producers and jurists have laid the foundation for mostly on the receiving end. I dream of living to see Egypt many of our neighbors’ systems. Although it has been maximize its potential and switch to a different mode. Is it challenged at times, this deeply entrenched legacy is still doable? Certainly, it has many of the attributes needed for very much alive. success. The logical question is what is missing? Why are Having confirmed that we have the irrefutable elements we here? What needs fixing? of success, we have to admit that we are missing disci- We need first to trust ourselves, because if we do not, pline, productivity and organizations that are results-ori- nobody will. Then we must ask questions in the proper ented. Previously in this space, I have discussed training, sequence. Are we qualified? Are we in the right place? Is productivity and work culture, which are imperative if we it the right time? Qualifications have to be demand-driven want to regain international recognition of the fact that we and adequately calibrated, and the weighted conclusion is are needed and proud to be so. No pessimist has ever built unequivocally yes. Egypt has an ample supply of qualified anything; only pragmatic optimists can move ahead and potential leaders who are capable of steering the country in lead. Anyone who sees Egypt as a hopeless case is looking the right direction. We are also in the right place, and the in the wrong direction. ANIS A. ACLIMANDOS President, AmCham Egypt
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Sisi announces presidential run Following months of anticipation, Defense Minister Abdul-Fattah el-Sisi announced March 26 that he was quitting the Army to run for president. In video comments posted on Facebook and aired on state television, the 59-year-old Sisi told Egyptians that although this would be his final appearance in uniform, he would remain first and foremost a soldier. “I will fight every day for an Egypt free of fear and terror,” he said, referring to the mili- tary government’s continuing battles with Islamic militants and street protests that have continued since the ouster of President Mohamed Morsi last July. Alluding to the country’s lagging econo- my, the U.S.-trained general also hinted BUSINESS MONTHLY ARCHIVES BUSINESS MONTHLY that Egyptians would need to make sacri- EGYPT COULD BE FORCED TO PAY MORE FOR IMPORTED WHEAT BECAUSE OF THE CRISIS IN UKRAINE. fices in order to get the “wheel of produc- tion” turning again. “The state needs to regain its posture and power,” he said. down against 529 members of Egypt's Ukraine unrest triggers “Our mission is to restore Egypt.” The outlawed Muslim Brotherhood. U.S. stock market, which had reached a five- State Department spokeswoman Marie rising wheat prices year high just the day before Sisi’s Harf called the Egyptian court’s March 24 With ongoing unrest in Ukraine showing announcement, dipped sharply following decision “shocking,” adding that “it defies few signs of abating, Egypt could be the news, with the benchmark EGX 30 logic that over 529 defendants could be forced to pay more for its imported wheat closing the day down 2.7 percent. No tried in a two-day period in accordance as Middle Eastern countries look else- election date has been set, but a Sisi win, with international standards.” She said the where for the key commodity. Egypt and which is widely expected, would make death sentences “will have consequences the rest of the Middle East have come to him the sixth military man to lead Egypt. for future American aid.” U.S. Secretary rely increasingly on wheat from Ukraine Only one other candidate, leftist of State John Kerry had said March 12 and southwestern Russia, as supplies Hamdeen Sabahi, has announced his that the U.S. could decide soon whether to from the United States have decreased in intention to run. resume some $1.5 billion in annual aid to recent years due to higher prices caused Egypt, some of which was suspended fol- by unpredictable weather. Egypt is the U.S. postpones lowing the Egyptian government’s crack- world’s biggest importer of the grain, down on protesters following the removal which is mostly used for government sub- resuming aid of President Mohamed Morsi. Egypt is sidized bread. Egyptian officials said they The restoration of U.S. aid to Egypt was the second largest recipient of American are looking to Russia, Romania, and pos- called into question following concerns aid after Israel, most of which comes in sibly France as wheat-supplier alterna- about the recent death sentences handed the form of military arms contracts. tives to the Black Sea region. An Egyptian
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government source told Reuters: “We “Egypt continues to be a key market for need to open the door to as many origins us and we remain committed to our as possible and then choose.” investments there,” Iyad Malas, CEO, Majid Al Futtaim Holding, said in a state- Government to enter ment on the company’s website. mobile market Free trade with Russia State-owned landline and Internet service Egypt is considering creating a free trade provider Telecom Egypt will be granted a zone with the customs union of Russia, long-awaited license permitting the com- Belarus and Kazakhstan, Egyptian and pany to operate mobile service, officials Russian officials said March 26. Russia is announced earlier this month. looking to strengthen relationships with The license will enable TE, the sole countries that are large importers of its provider of landlines in Egypt, to roll out crops and goods as the United States and its own mobile services without building European Union have threatened to bol- its own network, while giving Egypt’s ster sanctions over Moscow's intervention other three mobile operators—Mobinil, in Ukraine. Egypt is currently the largest Etisalat and Vodafone—access to parts of importer of Russian wheat. “We have its fixed infrastructure. Concerns have agreed to resume these negotiations and to been raised that the move unfairly favors discuss sectors of cooperation,” Russian TE since it has sole control of the fiber agriculture minister Nikolai Fydorov told optic cables by which cell phones transfer Reuters, adding that a final decision data. Vodafone has said it will consider fil- would be made after Egypt’s presidential ing an international arbitration suit when elections. Russia has proved to be one of the license is issued. Telecommunications the biggest supporters of the country’s minister Atef Helmy told Reuters that it military-backed interim government. would be activated before June 30. Egyptian trade, industry and investment Egypt’s mobile phone industry was dena- minister Mounir Fakhry Abdel Nour said tionalized more than a decade ago. Since Egypt is looking to work with Russia on a then, mobile phone market penetration number of possible projects, including has greatly increased, with most enlisting help from a state-owned Russian Egyptians owning at least one cell phone. firm to build a nuclear power plant and importing Russian natural gas. UAE giant to build new malls Economic growth revised Dubai retail developer Majid Al-Futtaim downward says it will expand its investments in Egypt’s economy expanded by just 1.2 Egypt by around LE 16.5 billion over the percent in the first half of fiscal next five years. The ambitious plan 2013/14, less than forecast, according involves building 32 Carrefour outlets to the government. Minister of and three new shopping malls in addition Planning Ashraf El Arabi said Egypt is to remodeling the Maadi and Alexandria aiming to bump up its growth rate by City Centre complexes. Majid Al Futtaim, continuing to spend stimulus money, which develops shopping malls, retail and much of which is being funded by aid leisure facilities across the region, said in from the United Arab Emirates. “We a press release that Egypt’s Prime aim to achieve a growth rate in the third Minister Ibrahim Mehleb has given his quarter of more than 2 percent,” Arabi blessing to move forward with the opera- told Reuters.” So far, the government tions. The investment is the latest sign of has spent around LE 25 billion of the Egypt’s growing relationship with the LE 64 billion allotted to the effort. United Arab Emirates, which has given it However, newly-appointed finance billions of dollars in aid since last year’s minister Hany Kadry Dimian remarked ouster of President Mohamed Morsi. before the announcement that growth
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STREET SENSE
How would the removal of energy subsidies affect you?
Looking at the big picture, there will be a big impact if salaries don't reflect the increase in prices. It would not affect me much because I mostly stay at home, and my journeys with the car are relatively short and few. Habiba Fouad, 28, housewife
It would affect me greatly. I don't have the option of using public transportation because it is extremely incon- venient. It either passes at random at arbitrary times, or there are too many people on board. My daily commute by itself is 70 kilometers. Shady Yassin, 32, telecom specialist
I don't own a car, and my everyday life is within walking distance, so I don't think it would directly affect me. Of course, I suspect that everything would become more expensive, but that’s nothing new. Mohamed Abdel Sattar, 41, gas station attendant BUSINESS MONTHLY ARCHIVES BUSINESS MONTHLY SMART CARDS WILL IMPOSE QUOTAS ON SUBSIDIZED BREAD. That would be a huge problem because at current fuel prices, I can barely keep up. I have to live far away from where I work because it’s the only thing I can afford, and this financial year should hover around 2 billion. Smart cards are also supposed to there is no public transport, so I need my car. I wish I did- to 2.5 percent, less than the 3 to 3.5 per- help officials track consumption patterns n't, but I do. cent previously forecast by officials. and prevent black market profiteering, Rachid Abdel Rahman, 38, gas station attendant Dimian also told reporters that he which Hanafi described to a reporter from expects the budget deficit will remain state-owned Al Gomhuria as a a flour- That would be really bad because I live very far away from everything and can barely cover my car's fuel bill high at around 12 percent rather than the smuggling “mafia”. He said approximate- today. If gas prices increase, I have no idea what I am 9 to 10 percent the government had pub- ly LE 7 million annually gets eaten by the going to do. I would hope that the government will raise licly been targeting due to a number of smuggling of subsidized products. prices only on the fuel expensive cars use. factors including high subsidies and a Morsi Abdel Wahid, 27, teacher new minimum wage. Egypt’s GDP grew by 2.1 percent in the last fiscal year. Tourism numbers bleak It really depends on how they manage it. If income Officials announced more bad news for moves with the rise in prices, I think it will be fine… But if fuel subsidies are removed in one blow, that will be Egypt’s tourism industry, with even fewer really bad. Personally, I will think longer and harder Food subsidy visitors than last year in the first two about using the car for trivial journeys. months of 2014. Tourism plummeted 28 Yousria El Ahmady, hotel housekeeper overhaul to begin percent in January and February com- Describing the current bread distribution pared to the same period the previous I really don't care about fuel subsidies because it affects system as a “failure,” newly-appointed year, according to CAPMAS. In particu- only the rich, and I will never own a car. What I care supply minister Khaled Hanafi said that about is the price of food— if that doesn't increase then lar, there was a decline in visitors from I’m OK. Egypt will implement a new subsidy sys- neighboring Middle Eastern countries Sayeda Abdel Gawad, street vendor tem within three months. The new plan, such as Libya, Syria and Bahrain, while which launched a pilot program in Port Emirati tourists actually increased. The It would definitely affect me, but I can't tell to what Said in February, will broaden the variety deadly bombing in February of a bus full extent. We saw prices rise in 2008 and 2013, and I of subsidized foods, allowing people to adjusted my budget. Things will just get a little tighter, of South Korean tourists in the Sinai and my lifestyle—what I buy and how many times I go choose from milk, fruits and vegetables, a peninsula has put Egypt back on the trav- out—will be different. spokesman for the Ministry of Supply el warning list for at least 14 European Sayyed el Zayed, 51, lawyer Mahmoud Diab told Ahram Online. countries as well as the United States. Using a smart card system that was Officials recently dispatched a delegation Of course it would affect my spending priorities. Maybe I announced last year under former would use the car less, but that would mean I wouldn't go of British experts to Sharm El-Sheikh to out as often. President Mohamed Morsi, the new plan assess the safety of Sinai's resorts, Ahram Sara Naser, 28, public relations representative will also impose a per-person limit on Online reported. Tourism minister subsidized bread. Reuters reported that Hisham Zaazou said the government was Hanafi said he expected the past fiscal COMPILED BY TAMER HAFEZ eyeing visitors from emerging markets year’s bill for food subsidies to be LE 30 such as India.
18 I Business Monthly – April 2014
Region Notes
Caspian Black Sea Sea
TURKEY
CYPRUS SYRIA IRAN TUNISIA Mediterranean Sea LEBANON IRAQ MOROCCO ISRAEL JORDAN KUWAIT SYRIA PALESTINIAN Persian ALGERIA LEBANON TERRITORIES GulfBAHRAIN QATAR LIBYA ISRAEL EGYPT UAE OMAN JORDAN SAUDI ARABIA
Red Sea
YEMEN SUDAN Arabian Sea
SOUTH SUDAN Map intended for illustrative purposes only and may not accurately SUDAN depict national boundaries or disputed territories.
■ Iran to phase out energy subsidies ■ Turkey stands by social media ban ■ U.S. captures renegade oil tanker
Iran’s president has announced that the Turkish Prime Minister Recep Tayyip The U.S. Navy seized a rogue oil tanker government will completely eradicate Erdogan imposed bans on popular that was being used by a rebel militia to energy subsidies in the coming months social media networks following his smuggle oil out of Libya. The tanker, as the country’s economy struggles after implication in a widespread corruption Morning Glory, was reportedly loaded years of operating under Western and scandal as the country prepares for with $30 million worth of crude before it United Nations sanctions. Last month, national elections. Defying interna- left the port of Es-Sidra on March 11, evad- the government announced that it would tional criticism of its March 21 block ing the Libyan Navy and precipitating a cease making monthly cash payments to of Twitter, the government banned the political crisis in which the Libyan parlia- most Iranians and raise the prices of video-sharing website YouTube a ment sacked Prime Minister Ali Zidan. some subsidized goods in an attempt to week later, citing “national security” Observers say the debacle demonstrated ease the burden on the cash-strapped after leaked recordings of meetings the weakness of Libya’s central govern- government. The phase-out could lead between top officials were posted on ment. Libyan officials had threatened to to a 90 percent increase in the cost of the site. In February, Turkey passed a blow up the North Korea-flagged tanker if electricity and gasoline for most controversial Internet law that allows it left the port, which is among several The New York Iranians, economists told regulators to block websites without a being held by rebels who are demanding a Times . Iran began lifting subsidies some court order. Social media users were bigger share of Libya’s oil profits. On four years ago, mediating the financial publicizing ways to skirt the bans. March 19, American Navy SEALs forcibly blow by dispersing monthly checks to Erdogan has long seen social media as boarded the ship off the island of Cyprus. the country’s poorest citizens. Very low- an increasing threat to his authority, A recent report by the European income Iranians will still be eligible to but the situation escalated when a cor- Commission said the port closures have receive monthly checks. In January, a ruption investigation ensnared dozens caused Libyan oil production to slip from number of countries agreed to lift some of elite government officials and busi- 1.6 million barrels per day pre-2011 to of the sanctions against Iran. However, a nessmen. Erdogan’s AK Party around 250,000 currently. The security sit- March 18 Reuters story reported that nonetheless appeared to have pre- uation has become a major drag on Libya’s Iran’s oil exports for the last several vailed in local countrywide elections economy, which depends on the petroleum months have been above levels allowed in late March, according to unofficial sector for 90 percent of its revenue and under the deal. tallies at presstime more than 70 percent of its GDP.
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AQUACULTURE FISH FARMS SEEK TO HOOK NEW MARKETS BY MAT WOLF
ff the Cairo-Alexandria investment banker who spent time liv- and hopes to triple his current production Desert Road near ing in the United States and Britain, start- in the coming years. “We’re not going to Sheikh Zayed City, ed Bustan (Orchard) two and a half years feed the world,” Farrag says, “but think where there is little life ago after hatching an interest in sustain- frozen dinners—I mean, these aren’t the apart from some olive able farming. By recycling the nutrient- crap you and I ate in college. Today groves and the Dandy rich water from his four giant tilapia fish they’re gourmet. Egyptian Tilapia filets Mega Mall, Faris Farrag, 42, is raising tanks into his vegetable beds, he grows with a little olive oil and lemon—that Ofish and gourmet vegetables in the baby spinach, purple kale, arugula, celery, could do well in grocery stores.” desert. Several fiberglass tanks and tomatoes, sage and a plethora of artisanal Farrag represents what is perhaps a new greenhouses make up Bustan lettuces, to name just a few. His crops and generation in a homegrown Egyptian Aquaponics, which Farrag boasts is “pesticide-free” tilapia—branded with a industry that has expanded rapidly in Egypt’s first and only aquaponics oper- hip logo picturing fish with their tails recent years despite an inadequate infra- ation. A hybrid of aquaculture and entwined around a green lettuce leaf— structure and regulatory system and very hydroponics, it combines fish farming have become a hit at high-end restaurants little marketing. Bustan produces five to and gardening to create a food chain and farmers’ markets in tony neighbor- seven tonnes of fish every year—a small that’s mutually beneficial to the ani- hoods like Zamalek, and Farrag says he’s yield compared to the massive fish farms mals and plants. Farrag, a former making money. He’s building new tanks in the Nile Delta. But there is a strong
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local demand for his “cleaner, higher end” tilapia, says Farrag. Egyptians buy a lot of the native breed, a mild white fish that has become increasingly popular worldwide in recent years. Egypt is now the world’s second largest producer of tilapia behind China, despite the fact that the country’s entire export market consists of a tiny amount of fresh tilapia shipped mostly to the Arab Gulf. In 2011, the most recent statistics available from the United Nations’ Food and Agriculture Organization show that the Egyptian aquaculture industry produced just shy of a million tonnes of fish and seafood, post- ing revenues of almost $2 billion, making it the world’s eighth largest producer of farmed fish. A 2011 industry study report- ed that the sector directly employed at least 100,000 people, as well as provided jobs in the shipping and feed industries, according to an international industry group, despite the fact that Egyptian fish WOLF MAT farmers register poor yields due to a lack and infrastructure could unlock a vast known thing. The ancient Egyptians did of modern aquaculture techniques or new untapped potential in the industry by it,” Farrag says. “We’ve just modernized fish strains. Industry experts add that hooking foreign and higher end buyers. and commercialized it.” Egypt doesn’t currently have adequate “We have the hatcheries, we have the Before giving a recent tour of his farm, government enforcement of standards technology, we have the experts and we which employs 12 workers, Farrag insists that ensure safe, healthy fish, making it have the know-how,” says Abdel-Fattah on changing into a collared shirt in order difficult to persuade bodies like the El-Sayed, an oceanography professor at to “look like a businessman, not a European Union to allow the import of the University of Alexandria. farmer.” Strolling through his green- farmed Egyptian fish. A recent project funded by the Swiss house, he picks and offers samples of fra- Egyptians are believed to have prac- government aimed to increase productiv- grant fresh basil and fennel. He stops at ticed fish farming for millennia, but the ity and employment in the sector, and a his tilapia tanks to toss in the soy-based modern industry was negligible until the 2012 study in connection with that project pellets on which the fish feed, and they late 1970s, when the government concluded that, despite the rapid growth rush to the top, splashing with enthusi- launched a plan to develop the sector. of recent years, Egyptian fish farmers’ asm. Farrag uses social media to promote They saw farmed fish as a cheap source of profits could disappear if the industry his products, all of which, he says, are protein for a booming population without doesn’t develop measures like fish pro- “sustainable and clean.” He travels to the expense and land needed to raise live- cessing and freezing that could open the regional agriculture conferences and stock. The industry grew exponentially in door to new market niches like the one expos to speak on green farming meth- the mid-1990s, with the introduction of Farrag is seeking to tap. His operation is ods, and he recently established a partner- new “intensive pond” technology. In unique among Egyptian fish farms in sev- ship with Offah.com, a local online deliv- 1997, Egypt produced 73,500 tonnes of eral ways. First, his fish are grown in ery service of premium fresh fruits and farmed fish. By 2009, a little more than a tanks versus large earthen ponds. Farrag vegetables. Farrag would like to branch decade later, that yield had grown nearly uses basic chemistry to create a symbiot- out to exporting his tilapia, but like others ten-fold. The government’s idea of push- ic system. He introduces bacteria into the in the industry, he lacks access to the ing farmed tilapia as a cheap alternative to water from his fish in order to break down expensive refrigeration equipment he meat was successful—perhaps too suc- the ammonia created by their waste, turn- would need to make that possible. cessful in some ways. While Egyptians’ ing it into nitrogen. The plants benefit Meanwhile, Egyptian fish farmers are eat far more tilapia than ever before, it’s from the nitrogen while re-oxygenating legally barred from using freshwater, developed an image as a poor man’s fish. the water, which is mostly pumped back which is prioritized for agriculture. The Most Egyptian-grown tilapia is sold by into the fish tanks. Some of it, rich in fish European Union, for example, currently street vendors rather than supermarkets. manure, is used to water his olive trees. will not import most Egyptian farmed fish Fish farmers say better marketing efforts “Combining fish and plants is a well because it is not satisfied that conditions
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are being met to guarantee its safety, according to industry members. Sayed, of the University of Alexandria, has worked as a consultant to the region- al fish farm industry for 40 years and done field research for the UN. He says that there is a general stigma associated with fish farmed in brackish water, like that found in the lakes and Delta pond farms that house most of Egypt’s farm-raised fish. It’s true that some number of these operations are unlicensed and illegal and can use stagnant agricultural runoff water that contains sewage or an excess of fish manure from improper cleaning. Such informal farms not only often grow unhealthy fish but can risk contaminating drinking water sources. However, Magdy
Saleh, an expert in fish health and man- SOHA SOHA EL GABI agement who used to work for the Egyptian government, says that the notion operation into a successful enterprise, given the higher demand in the West for that Egyptian farmed fish is diseased or raising around 1,500 tonnes of tilapia, ocean fish. However, Egypt lacks the contaminated just because it’s largely mullet and catfish yearly using mostly fjords and bays of successful marine fish grown in brackish water isn’t true. Breeds brackish water. Elbeshbishy says he gets exporting countries like Norway and like tilapia, mullet and Nile catfish actual- about LE 12 per kilogram for his fish. Chile, and the country’s coastal waters are ly thrive in relatively salty water, he says, Many farmers simply break the law and too rough to house large numbers of off- which is unsuitable for anything else, use freshwater anyway, but they risk jail shore cages, the setup for most marine making it a very efficient use of resources. time and fines if they get caught. His fish farms. Moreover, much of Egypt’s A 2010 study by Cairo University and the brackish water-raised fish are healthy, he coastline is earmarked for tourism. National Institute of Oceanography and insists, but it’s an issue of perception he “There are huge amounts of resorts, and Fisheries found that, on average, the fish wants to fix. “We need to reach the con- there’s very little room left for marine in Egyptian farms did not contain pesti- sumer and tell them it’s good for your aquaculture,” says Sayed of the cides, chemicals or heavy metals in health,” he says. University of Alexandria. Finally, while unsafe levels. The report’s authors con- Wadi Food, the local specialty food the final product can be sold for more, this cluded that fish farming in agricultural giant, runs a saltwater fish farm at Rula type of fish farming has higher up-front runoff water, which does contain traces of Farm in Wadi Natrun, about 80 kilome- costs than freshwater varieties. substances like lead and cadmium, is still ters inland from the Mediterranean Sea, Salah Taher, a fish farm expert who is safe, and other studies have come to sim- that started by accident. Workers culti- currently a consultant on the Wadi pro- ilar conclusions. “We’ve been doing it vating land for olive groves hit a natur- ject, is adamant that the industry needs to that way for 40 years,” Saleh says, “I let al saltwater aquifer. Wadi decided to establish an independent union that could my own children eat it.” use the water to house saltwater-hardy lobby support for the industry as well as a Even with negligible exports, however, species such as sea bream, red tilapia better government system to reliably set Saleh points out that the local fish farms and sea bass, with the latter breed par- and enforce realistic and up-to-date regu- already enjoy a big market. In addition to ticular popular on the export market. lations to ensure its fish is safe and consuming almost all the fish it produces, The Rula aquifer, a clean, closed sys- healthy. “When I started this, I didn’t Egypt imported some 400,000 tonnes of tem that replenishes itself, now exports think [the fish farm industry] would fish annually according to data published sea bass to Italy, while the runoff water become so big,” says Taher, who nonethe- in 2012. But Diaa Elbeshbishy, whose from the tanks is used to cultivate salt- less points out it has a long way to go family owns a 200-acre fish farm in Kafr resistant plants such as salicornia, before supermarkets in Europe and El-Sheikh in the Nile Delta that is among artemisia and atriplex, which are sold America are stocking frozen packages of the nation’s largest, says he could market as salad ingredients. Egyptian-made tilapia. “We need to cre- his fish better and sell it for more if he was Wadi’s success with the saltwater ate a generic brand, ‘fish made in Egypt’ legally permitted to use freshwater. His species has led some to speculate that or something like that,” he says. “Egypt family has been in the fish farming busi- expanding Egypt’s much smaller marine has been very successful, but we have to ness since the 1980s and has grown the fish farm industry could be lucrative, become an international player.”
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AFFORDABLE HOUSING GOV’T MEGA-PROJECTS SPARK HOPE, SKEPTICISM BY TAMER HAFEZ SOHA EL GABI
rd El Lewa, a poor rain non-stop during the worst of the than half a century to Nasser’s pledge district that lies on rainy days. We had to bring towels to provide all Egyptians with decent, the other side of the from the neighbors to dry the roof and affordable housing; successive govern- Sudan Street rail- furniture,” complains Faizy, adding ments have been unable to keep pace road tracks that bor- that on dry days, dust comes right with the country’s mushrooming popu- der Mohandeseen, is through the porous, stone and concrete lation. Meanwhile, ambitious projects a poorly planned neighborhood of walls, even when the windows are have been marred by corruption, Amulti-storey apartment buildings lining closed. “That’s not to mention our daily incompetence and bad planning. The narrow streets jammed with beeping struggles with water and sewage prob- Ministry of Housing estimates that tuk-tuks. Beyond that is an informal lems.” he says, which include over- 800,000 more units are needed annual- zone that has expanded ever westward flows and routine water cuts from ly to accommodate Egyptian home- with Cairo’s urban sprawl, a ghetto of blocked pipes. But this is what Faizy, seekers. While plenty of luxury unpaved alleys and unpainted, tin- who clears LE 2,000 a month at his job dwellings stand empty and available, a roofed dwellings where the tuk-tuks are at a Mohandeseen law firm, can afford. dearth of lower-end homes has left an replaced by donkeys clip-clopping He is not alone. Informal settlements affordable housing deficit of some- through piles of trash. This is where house some 67 percent of greater where between 1 million and 3 million. Abdallah Faizy, 39, makes his home Cairo’s 18 million-strong population, The latest grand plans to remedy the with his wife and two grown sons, in a according to World Bank data from problem were announced last month, ground floor cubicle divided by bed 2011. Despite government efforts cost- when military chief Abdul-Fattah el- sheets for privacy. “My roof dripped ing billions and stretching back more Sisi announced that the Army had
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signed a LE 280 billion deal with the end less than half of the 5,200 country, with apartment sizes ranging Emirati construction giant Arabtec to promised units were actually finished, between 85 and 120 square meters. provide one million affordable homes while most of those that were built Qualifying income requirements have for “Egypt’s youth.” That is on top of remain vacant, tied-up in contractual not been released. “From the outside, the Social Housing (or “Million Units”) disputes and allegations of shoddy con- the project looks really good,” says Project launched two years ago by the struction. NUCA’s “Build Your Home” Mohamed Abdallah, chairman of housing ministry in cooperation with project in 2007 was a similar boondog- Coldwell Banker Affiliates of the private sector developers, in addition to gle. Last year, Nabil Abbas, NUCA’s Middle East and Greater Africa, who several other state-sponsored efforts. first deputy chairman, told Al Masry Al nonetheless stresses that the project’s The two projects are complemented Youm that the project had failed due to details remain vague. One issue he rais- by an affordable real estate financing “lack of proper planning” and acknowl- es is its LE 280 billion price-tag, which initiative sponsored by the Central edged that it had incurred “massive” would work out to a cost price of some Bank of Egypt as well as an effort by losses. LE 280,000 per unit—a lot for a low- the Financial Supervisory Authority to income home. “This is a huge sum, encourage real estate investment funds especially given that the land would to attract more investment in the sector. “THE ONLY WAY THAT most probably be free because it The New Urban Communities SOCIAL HOUSING CAN BE belongs to the Army,” says Abdallah, Authority recently revised its housing MADE AFFORDABLE IS FOR who also points out that Arabtec— policy to ease conditions for new THE STATE TO TACKLE THE which helped build the Burj Khalifa in developments. At a March 2 meeting ISSUES WITH MORTGAGE Dubai, the world’s tallest building— with ministry staff and reporters imme- FINANCE.” specializes in luxury high rise property. diately following his appointment as “It has little experience with this kind Egypt’s new top housing official, hous- of construction,” he says. Others have ing minister Mostafa Madbouly With its “Million Units” project, offi- questioned the feasibility of the scale of admonished ministry employees that cials have promised to remedy some of the project, especially given that the their goal should be “preserving the those problems, focusing on building in government is already lagging behind dignity” of every Egyptian by “offering high-demand areas rather than in outly- on one million-home housing effort. proper services, infrastructure and ing communities, where cheap land Critical issues such as ensuring ade- offering him an affordable home.” may abound but few jobs exist. quate infrastructure and raw materials Egypt’s first government-subsidized Qualifying buyers must prove they are have yet to be addressed. “I don't real- homes were built in the 1950s under first-time homebuyers, between the ly expect a lot, given what we have President Gamal Abdel Nasser by state- ages of 21 and 50 and earn a maximum seen in the past,” admits Abdallah. owned real estate developers. They annual income of LE 27,000 for indi- Officials still hope the projects could were sold at below cost and paid for in viduals and LE 40,000 for families. give Egypt’s economy a much-needed installments, which slowed developers’ Flats cannot be sold for seven years, shot in the arm, given that some 80 other cash flow and construction, making it and the poorest buyers will receive pri- industries are connected to the real hard to keep pace with demand. The ority. The project was initially sched- estate sector. The Arabtec-Army project, projects were supposed to house work- uled for completion in 2018, at a rate of which is being billed as the region’s ing class Egyptians, but since buyers 200,000 new homes annually. But two largest housing initiative, promises to weren’t required to show proof of years in, just 94,000 units are ready, create 1 million jobs for Egyptians. income, many took advantage of the according to Ministry of Housing First Traditionally, developers here have chance to purchase cheap homes and Undersecretary Nafisa Hashem, who focused on high-end mixed-use devel- resell them at a profit one or two years adds that turmoil has stalled progress. opments in the Cairo suburbs, which down the line, with some unscrupulous She declines to give sale prices but says tended to offer better and more consis- investors actually renovating and flip- building costs for each unit will range tent returns. The result has been Egypt’s ping the properties by marketing them from LE 100,000 to LE 160,000. “We dramatically imbalanced housing mix. as luxury homes. Moreover, they often have yet to agree on the subsidized However, there is now a general recog- exceeded the average Egyptian’s bud- price,” says Hashem. nition that “the government can't meet get. “They were too pricey,” remem- News of Sisi’s Arabtec project, the rising demand for low and middle bers Hany El-Assal, chairman of local meanwhile, dubbed “For Egypt’s income housing alone,” says El-Assal of developer Misr Italia Holding. Former Youth,” comes as the country’s top Misr Italia, who says that such projects President Hosni Mubarak’s National general is preparing to run for presi- must nonetheless deliver adequate mar- Housing Project, launched in 2006, was dent. The homes will be built on gins of around 6 percent to private marred by bad planning, incomplete 160,000 square meters of land donated developers in order to be attractive. This infrastructure and legal disputes, and in by the military on 13 sites around the could prove difficult due to the limited
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down payment. There was no paper- work—Faizy simply handed the previ- ous owner a wad of cash. Beforehand, though, he had considered a bank loan to enable him to afford a safer, proper home for his wife and kids, but after inquiring at a local bank, he rejected the proposition as too risky and expen- sive. “What if I lost my job?” he asks. Stories like his are why Abdallah of Coldwell Banker believes the availabil- ity of low-interest financing is crucial. “It will open the door for more individ- uals to buy apartments at favorable conditions,” he says. Local banks have shown interest in the initiative, recognizing a potentially enormous untapped market for low- interest mortgages. The National Bank of Egypt, which holds more than half of all Egyptian savings accounts, will disburse LE 3 billion of the financing
BUSINESS MONTHLY ARCHIVES BUSINESS MONTHLY money through its real estate sub- sidiary. “Our main work now is how to purchasing power of the target market. Urban Progress, who points out that ensure these loans,” says Walid Nagy, On the other hand, demand is robust, he profit margins for developers are retail products and sales director at the says. “It could be delayed for two or three almost three times higher than in com- bank, adding that that the mortgages years, but demand always materializes.” parable markets. What’s more, com- will be riskier than most because the Other efforts have been undertaken mercial banks are awash with cash. In CBE has dictated that banks cannot recently to encourage growth at the December, deposits increased by LE confiscate properties purchased with high and the low ends of the real estate 53.8 billion, the biggest monthly such loans if a borrower defaults. Also, market. NUCA Chairman Magdy increase of the year, while debt the 20-year borrowing period is consid- Fakhry announced several measures decreased by just LE 4.637 billion. erably longer than the average life of a designed to offer financial breathing While the Ministry of Housing, typical Egyptian loan, points out Bassel room for developers: postponing NUCA and EFSA have addressed the Rahmy, retail banking head at the Bank penalties on developers for late pay- supply side of the equation, the Central of Alexandria, which will nonetheless ments, for example. The agency will Bank is addressing the demand side via participate to the tune of LE 500 mil- soon announce new policies expected a LE 10 billion financing initiative that lion. “The only way that social housing to “resolve old problems that resulted aims to expand Egypt’s relatively can be made affordable is for the state in land and property prices spiraling underdeveloped mortgage market by to tackle the issues with mortgage out of control,” says Fathallah Fawzy, granting low-interest loans to low and finance,” said developer Hassan Dora head of the construction committee at middle-income homebuyers. in a February report by the Oxford the Egyptian Businessmen’s Individuals earning less than LE 8,000 Business Group. Association. The changes involve a month and families earning a maxi- In the meantime, Faizy and millions more flexible project deadlines; a fair- mum of LE 10,000 a month could qual- of other Egyptians who live in illegal, er, more transparent system of decid- ify for home loans at an annual interest makeshift residences probably won’t ing which needy Egyptians qualify for rate of 7 or 8 percent rather than the 13 get excited just yet about the new free homes; and granting support to to 15 percent market rate. “It could ambitious affordable housing plans struggling developers. increase to LE 20 billion if the program recently announced by his country’s To stimulate investment in real estate proves successful,” said CBE head defense minister and possible future projects, financial authorities have Hisham Ramez at a press conference in president. “The government thinks allowed the creation of sector-specific early March. Faizy, the office assistant poor people like us still believe their investment funds. “This is an excellent from the informal quarter near Ard El promises,” he says. “We don’t—unless move,” says Tarek Shoukry, chairman Lewa, paid a total of LE 15,000 for his we have the keys and the property of Arabia Group for Development and home in 2000, including a LE 7,500 deeds in our hands.”
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COVER STORY
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IN THE DARK As Egypt heads into another summer of rolling blackouts, the interim gov- ernment has pledged to enact long- overdue changes to the nation’s energy policy, including reforming subsidies and developing renewables. But with a presidential election around the corner, are Egypt’s leaders willing make the hard choices necessary to end the power crisis?
BY MAGGIE HYDE
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RUNNING ON EMPTY: IN ADDITION TO A SHORTAGE OF NATURAL GAS TO POWER ELECTRICITY PLANTS, THE ENERGY CRISIS IS COMPOUNDED BY AN AGING AND INEFFICIENT GR power crisis had come to an end. It’s now only around 10 percent of the market cost round 7 p.m. on a obvious that that wasn’t the case. Nearly a of many types of fuel, with the govern- recent weeknight, a year since Morsi’s ouster and more than ment shouldering the rest—something Dokki street goes three years since the January 25 revolu- everyone agrees it can’t keep doing for black. A few cell tion, there is no end in sight for Egypt’s much longer. The political turmoil of phone flashlights energy shortage, as the interim govern- recent years has only accelerated the blink on, and a noisy ment scrambles to find solutions. Energy- decline of a model that was already anti- generator sputters to life in a small gro- intensive industries like cement are rais- quated and wasteful, experts agree, mak- Acery store. Insects and squinting passers- ing prices in response to shortages and ing a long-overdue restructuring of the by gravitate to the fluorescent glow of the cost hikes, causing ripples across Egypt’s system even more pressing. market, while bouabs light cigarettes and lagging economy. In late January, a major Part of the problem is Egypt’s heavy settle down at their posts to wait for the British gas player publicly complained reliance on natural gas. The country lights to go back on. It’s a familiar scene that the Egyptian government was taking counts on oil and gas products for 96 per- across the Egyptian capital. This year, the virtually all its fuel—violating its produc- cent of its electricity needs. Renewable frequent blackouts that have become a tion contract with the firm—in its struggle alternatives are being explored, including regular feature of the sweltering Cairo to keep the lights on. Egypt’s ever-enter- solar, wind and nuclear power, as well as summer began in January, a symptom of prising street vendors, meanwhile, are less fashionable, much dirtier options the government’s inability to secure doing a brisk business in battery-operated such as coal. But none of these long-term enough fuel to operate the country’s lights and fans. solutions on its own will solve Egypt’s power stations. On this leafy, middle class Egypt’s energy crisis goes back years, energy woes, which boil down to the fact block, it was already the third power fail- rooted in an unsustainable energy-subsidy that it needs more fuel—fast. As Egypt ure this week. model that is a holdover from the social- gets ready for the summertime peak ener- Last summer’s removal of President ist promises of the Nasser era. The gy season, the recent spate of unusual Mohamed Morsi coincided with a sudden nation’s addiction to power subsidies now winter blackouts has left many fearful of respite from the daily rolling blackouts costs Egypt upwards of LE 130 billion a how the power grid will hold up once and long gas queues that had fueled grow- year, about a fifth of government spend- Egyptians begin to switch on their air ing anger toward his regime—spurring ing, according to recent official estimates. conditioners. The answer is sure to figure widespread, wishful speculation that the Egyptians themselves foot the bill for heavily in Egypt’s imminent presidential
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In Depth ALFRED ALFRED ALFONS NT GRID AND YEARS OF WASTEFUL CONSUMPTION HABITS. ON MANY OF EGYPT’S ROADWAYS, STREETLAMPS REMAIN LIT DURING THE DAY AND SWITCH OFF WHEN NIGHT FALLS. election, which Army chief Abdul-Fattah square, says Osama El Said, a former and gas sector, including executives from El-Sisi is heavily favored to win. senior advisor to the Ministry of big players like Apache, British Gas and When the power goes out at the Electricity who is now managing director British Petroleum, all of which have sig- RadioShack on Mohi El Din Abul Ezz of electrical consulting and contracting nificant local stakes. His frank speech was Street in Dokki, employees are instructed firm Masa Electro, is due to arbitrary well received by industry players, who to lock the doors to guard against theft, decisions by switchboard managers as to seemed to agree it represented a rare dose explains 25-year-old sales clerk Islam which blocks to switch off to relieve strain of reality from an Egyptian official, espe- Gameel. “Of course, this means we get on the grid when demand exceeds supply. cially on the subject of subsidies reform, fewer customers,” he says. In sector after “They disconnect buildings at random,” which has long been considered a third sector, anecdotes abound illustrating the he says. rail in Egyptian politics. In the past, “We economic consequences of power cuts: An aging, inefficient system also con- have been misled by unprofessional data assembly line shifts cut short, patrons fil- tributes to the power failures. An adequate and information released for political pur- ing out of restaurants. Factories that used supply of fuel, pressure, and the plant’s poses,” says Khaled Abu Bakr, chairman to remain open for two or three shifts now machinery all need to be operating cor- of energy production firm Taqa Arabia. have only enough power for one. rectly in order for Egyptians to be able to The Ministry of Petroleum recently Egypt’s ballooning population and the successfully flip on their air conditioners, forecast that in the upcoming financial predominance of energy-intensive indus- lamps and appliances. “The main problem year, natural gas consumption would tries such as cement, glass, iron and fertil- is our grid is very old,” explains Said. “If reach 5.57 billion cubic feet per day, out- izer have accelerated electricity demand, one of these things is not working, then, pacing expected production of 5.4 billion which grows by around 7 percent annual- poof—no electricity.” cubic feet per day, according to Reuters. ly. The evening blackouts with which Since much of that production is already Cairenes have become familiar coincide tied up in export contracts, the shortfall is with peak consumption, when most peo- Storm clouds gathering significant. “We’re in a crisis,” declared ple come home from work and turn on At an AmCham luncheon in an airy the petroleum minister at the luncheon. their lights, televisions and computers. ballroom at the Four Seasons Hotel “There’s no link between what’s hap- The reason you can sometimes stand on Cairo at Nile Plaza in late March, petro- pening in the world and what’s happen- your balcony during a power outage and leum minister Sherif Ismail spoke to a ing in Egypt.” According to Ismail, the gaze at the fully lit high-rise across the crowd of high rollers from Egypt’s oil recent spate of winter blackouts is
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In Depth SOHA SOHA EL GABI TECHNICAL DIFFICULTIES: EXPERTS SAY ONE BROKEN LINK IN THE ENERGY CHAIN—SUCH AS A DOWNED POWER LINE—CAN CAUSE A BLACKOUT.
directly connected to the problems with affected,” he says, adding that a num- LNG Project and will continue to nego- the North Alexandria Block, a mammoth ber of firms have stopped making big tiate with the Egyptian authorities and offshore gas field held mostly by BP that investments in the sector. other stakeholders to seek a long-term was expected to come online by the third Another telling move regarding solution.” quarter of 2014, in time for the peak sum- Egypt’s current natural gas supply situa- The unusual move has made waves in mer energy season, bolstering Egypt’s tion came in the form of a January press Egypt's oil and gas industry, in which natural gas supply by 18 percent. release from the U.K.-based BG Group, scuffles related to public-private partner- However, “environmental concerns” which counts on Egypt for around one- ships are typically dealt with behind among local residents forced the post- fifth of its total production, that it was closed doors. On the sidelines of the ponement of production from the conces- issuing a profit warning to investors and March 24 AmCham luncheon, Egyptian sion until sometime next year. declaring force majeure for its Egypt General Petroleum Corp. Chairman Tarek Moreover, the political turmoil that has operations due to the government’s El Molla downplayed the issue. “We rocked Egypt in recent years has scared “ongoing diversions of gas volumes to never had a problem with BG,” he says. “I away foreign investors, which experts the domestic market,” leaving the com- don’t know what they told their investors, say is another factor behind the slump in pany unable to meet its export obliga- but I sat right next to the BG guy today. fuel production. BP, for one, maintains tions to customers. Like other multi- Just because they issued force majeure that its operations in Egypt “haven’t been national energy firms, BG has a produc- doesn’t mean we can’t do business.” affected at all” by the upheavals of the tion-sharing arrangement with Egypt In his speech, Ismail alluded to ongoing last three years, according to spokesman that entitles it to a share of the gas it efforts to build an offshore regasification Robert Wine, who adds in an email that extracts from the ground, while the gov- terminal, which would enable Egypt to operations are proceeding as planned on ernment pumps the rest into the national import gas without building a pipeline to the North Alex field, despite delays due grid to power factories, electricity plants a neighboring producer. Plans to build to the relocation of a receiving port that and households at below-market rates. such a facility were announced back in sparked protests among locals. However, But the government, lacking enough gas 2012, but the project fell apart before offi- Hassan elTorie, an energy analyst with to meet domestic needs, has been cials had picked a contractor. According international research firm IHS says that siphoning almost the firm’s entire pro- to a February Reuters story, Norwegian the notion that instability hasn’t impacted duction capacity of 1 billion cubic feet company Hoegh had won a contract to energy exploration and production in per day to the local market, according to build the LNG facility but had subse- Egypt is false, the company lines BG, which took pains to stress that it quently backed out, citing a lack of finan- notwithstanding. “They have been “remains committed to the Egyptian cial and commercial guarantees from the
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government. A spokeswoman from Hoegh declined to comment on “projects we are tendering for.” Ismail told reporters following his speech at the AmCham luncheon in response to ques- tions about the project that “everything is back on track,” with Hoegh’s contract to build the LNG facility. But he added that the regasification plant, which had been slated for completion this summer, would be delayed until at least August. Industry insiders said the end of the year is proba- bly more realistic. In the meantime, a shorter-term stop- gap solution may be importing more mazut, a heavy, inefficient fuel oil that is already in use. Molla of the EGPC says mazut may be Egypt’s best hope of get- ting through the summer with enough fuel, since most of its power stations can run on it in place of natural gas, although it is significantly more expensive as well as polluting. The petroleum minister has said the amount of mazut available to power such plants would increase from 22,000 tons to 35,000 tons within the coming year. Meanwhile, officials are considering a controversial proposal by cement companies for permission to run on coal, which has caused an uproar among environmentalists. In any case, officials needed more fuel yesterday. “We
don't have enough fuel at certain times,” ALFRED ALFONS says Fathy El-Sayyed, chairman of the LIGHTS OUT: POWER FAILURES ARE MOST COMMON IN THE EVENING, WHEN CONSUMPTION IS HIGHEST. Upper Egypt Electricity Production Company, which oversees dozens of But first, the government must provide but it still owes some $4 billion to foreign power stations from southern Cairo to guarantees to firms that secure their oil and gas companies, including BG. Aswan. investments and ensure that promised New exploration of untapped natural In the current spirit of looking to the fuel required for production won't fail to gas wells—in particular, rich ones private sector to help perform public materialize. The Central Bank could believed to lie deep beneath the functions, one possible solution is so- issue sovereign guarantees promising Mediterranean Sea—has also been called independent power producers, or them compensation if something goes delayed thanks to bureaucratic red tape IPPs, companies that make and sell ener- wrong, say industry experts. and the state’s failure to provide financial gy at market prices to willing customers, Unfortunately, Egypt’s track record of guarantees to energy firms. The Egyptian such as industries and well-heeled con- fulfilling its financial obligations hasn’t Natural Gas Holding Co. has made sumers who don’t mind paying a premi- been terribly reassuring lately, as the attempts to remedy some of these prob- um for an uninterrupted power supply. cash-strapped state has racked up petrole- lems, but Ismail says newly discovered According to Said, firms from Korea and um debt. Since the 2011 uprising, some concessions in the Western Desert, for the Gulf have expressed interest in open- 19 arbitration claims have been filed example, are still three to five years away ing large-scale power stations in Egypt against the Egyptian government by from yielding fruit. under an IPP arrangement, which could international oil and gas companies, nine provide a way for Egypt to revitalize its of which have been settled. Thanks to bil- energy infrastructure and increase pro- lions in aid from its friends in the Gulf, Look to the sun duction capacity at little cost to public the interim administration has been able For a long-term solution to its power coffers. to pay down some of its outstanding bills, problems, experts say Egypt must
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ultimately develop renewable energy sources. Of these, many experts agree that the most promising is solar, for which Egypt’s dry, sunny weather conditions are ideal. “We have the strongest and longest concentration of sun in the world,” envi- ronment minister Laila Iskander said at a February conference on climate change sponsored by the German Embassy. Currently, though, solar energy accounts for an almost negligible frac- tion of Egypt’s electricity supply. The nation’s only solar hybrid power plant, Korymat in Beni Suef, produces a maxi- mum of 20 megawatts of electricity daily from the sun’s energy compared to 100 megawatts from traditional fuels. Yasser Sherif, general manager of Environics, an international environmental consult- ing, firm who has previously advised the government on renewable energy, says Egypt needs to produce at least an addi- tional 2,000 megawatts of power a day to meet its current energy needs. “In the long term,” he says, “we need a total transformation.”
Inside an enormous domed auditorium ALFRED ALFONS at Egypt’s British University in Sharouk PLAN B: A BOOMING TRADE IN GENERATORS IS A COROLLARY EFFECT OF EGYPT’S POWER SHORTAGE. City, 50 or so journalists and energy industry types gathered on an afternoon in Solar, says it simply doesn't make eco- countries around the world, but thus far mid-March for the launch of a new solar nomic sense for them. That’s why Karm none have displayed the political will to initiative called Yalla Shams, which Solar, which sets up solar energy systems go through with them. The restive cli- encourages households and businesses to for homes and businesses, almost exclu- mate in the Egyptian streets since 2011 purchase solar panels. The enormous hall sively serves clients outside the Nile has made the situation even more deli- was chilled by blasting air conditioners Valley who aren’t hooked up to the cate. During the peak consumption despite the breezy spring day, prompting national power grid. Currently, says months last summer, officials danced reporters to don sweaters. Yalla Shams Hosny, this is the only viable market for around the crisis, blaming the fuel short- co-founder Ahmed Moussa, who has solar, apart from a smattering of wealthy age on everything from the black market advised tourist operations and other busi- consumers among whom solar panels on to stealing to fluctuations of the interna- nesses on establishing green practices, their North Coast villas are considered a tional energy market. The petroleum told the gathering that Egyptians can’t status symbol. Yalla Shams founders minister says subsidies will be lifted afford to count on the state to solve the acknowledged that they have so far strug- gradually within the next five to seven energy shortage. “If everyone is waiting gled to sign up solar panel production years, “so the economy can absorb it for the government to do something, companies, which are required to donate without a shock to the system.” Things nothing will happen. It’s about awareness, 2 percent of their profits to building could get much worse if these long-over- social responsibility. We can do it without renewable energy networks in under- due structural changes to Egypt’s energy government.” served villages. Solar energy will never policy are postponed much longer, Their commendable can-do spirit take off in Egypt until it’s no longer com- experts stress. But Ismail insisted that the notwithstanding, others in the energy peting with subsidized fossil fuels, says interim government is no longer interest- industry have pointed out that few com- Hosny. Which is why he believes that ed in applying Band-Aids. “Most of the panies or individuals are likely to take up subsidy reform is the only way forward. efforts we’re doing now are not to solve solar—or any renewable power source, “Without it, there’s no hope,” he says. the problems of today,” Ismail told the for that matter—when there is cheap, sub- Officials have talked for years about crowd at the Four Seasons. “I trust that sidized gas available. Omar Hosny, chief reforming energy subsidies, which things will eventually get better, but not technical officer at Zamalek-based Karm were phased out long ago in most other immediately.”
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Labor
HELP WANTED The global unemployment crisis Published by the World Economic Forum and the Brookings Institution Analysis by Rachel Scheier
oblessness is a worldwide problem. According to the show that Egypt’s economy will need to grow by at least 6 percent International Labor Organization, global unemployment to make a dent in the unemployment rate by 2020. “Short-term is set to rise in 2014, with more than 200 million people policy actions like raising wages and increasing subsidies only without work, as the long-term effects of the 2008 glob- exacerbate the problem, which is driven by longstanding structur- al financial crisis continue to wreak havoc on many al weaknesses.” countries. Even in developed economies, youth unem- A report by the World Economic Forum presented at the orga- ployment is expected to hover above 15 percent. In parts of south- nization’s annual meeting in Davos, Switzerland in late January Jern Europe, between 33 percent and 50 percent of young people urged governments to take action. The paper, entitled who are eligible to work lack jobs. But nowhere on the planet is “Unemployment: Rising to the Global Challenge,” points out that, like several other countries in the region, Egypt faces a catch-22 as the youth unemployment crisis more serious than in non oil-pro- it struggles to solve the unemployment crisis and get back on its ducing nations in the Middle East and North Africa. An ILO sur- feet following three years of political turmoil. It desperately needs vey concluded that the Middle East’s 2012 youth unemployment political stability to achieve an environment conducive to job cre- rate of 28 percent was the highest in the world, with North Africa ation, but job creation is necessary in order to achieve political sta- coming in a close second at 24 percent. For young women, the fig- bility. “Somehow, a way must be found to strengthen popular faith ures are even starker—43 percent and 37 percent, respectively. in the government’s ability to inject energy into the economy, With more than half the population under 25, tens of millions more attract foreign investment and generate jobs,” write the authors. jobs will be needed by the end of this decade to absorb the hordes Developed nations and wealthier neighbors in the Arab Gulf of young people about to enter the regional labor market. have a key role to play “by assisting their counterparts in the According to recent data released by CAPMAS, the state statistics region to restructure their economies, launch administrative agency, Egypt’s official unemployment rate remained around 13.4 reforms and provide much-needed investment.” The Egyptian percent in the fourth quarter of 2013, nearly 70 percent of them state, meanwhile, must focus its efforts on stimulating job creation between the ages of 15 and 29. However, these numbers don’t in sectors where the impact will be the highest, in industries that reflect the vast informal sector, where unemployment is believed are globally competitive and labor intensive. Entrepreneurship to be much higher. And the picture has gotten steadily worse: Last should be encouraged by providing funding and streamlining reg- year, the period from July to September alone left an estimated ulations, for example, “enabling new dynamic companies to pro- 30,000 more Egyptians unemployed as a result of ongoing politi- duce growth and jobs.” In particular, Egypt must strive for “polit- cal instability and escalating violence, according to the World ical stability, which provides the very foundation for economic Bank’s most recent quarterly economic report for the MENA efforts” and work to strengthen the social safety net, “preventing region. Between 700,000 to 800,000 new Egyptian job seekers the unemployed middle class from sinking into the abject poverty enter the labor market every year. Estimates by the World Bank that is likely to provoke yet more social upheaval.”
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Democracy
Solving the youth unemployment crisis in Egypt, however, jobs is as important as the quantity. “‘Bad jobs’ are likely to will require more than policy shifts. As well as economic stag- leave those at the bottom of the labor market in a depressing nation and social upheaval, the problem is rooted in unrealistic cycle, which takes them from joblessness to an active labor cultural expectations, in particular among educated Egyptian market program, to low quality work, to joblessness.” youth, who often prefer to hold out for cushy public sector jobs Apprenticeship and training programs are an important short- that no longer exist, points out a recent report by Akira Murata term step that can have positive long-term effects toward alle- of the Brookings Institution, “Designing Youth Employment viating the youth unemployment crisis. “The fact remains that Policies in Egypt.” Such ideas are the result of the longstanding private companies do not want the region’s stereotypical uni- Egyptian government policy versity graduate, who possesses unre- since the 1950s of guarantee- alistically high expectations despite ing public employment to uni- "Companies do not want the region's very little work experience.” Another versity graduates, which has stereotypical university graduate, important step is “to ensure that SMEs sent young people “distorted who possesses unrealistically high with a proven potential for growth signals about the labor mar- expectations despite very little work have access to the support they need to develop and create new employ- ket.” Moreover, aiming to experience." solve joblessness with the past ment opportunities.” Other possible Band-aid of simply creating measures include reducing payroll more state positions is no longer sustainable and has only led taxes, providing state-guaranteed loans for new businesses and over time to a costly and “bloated public sector.” The “mis- implementing schemes for “seed accelerators” that provide match between young people’s expectations and the reality of young companies with “mentoring, training and funding” in the job market has undoubtedly led to much frustration.” exchange for a share of equity. The social security safety net Nor will education alone solve the problem. A disproportion- should be maintained and improved, preventing the unem- ate percentage of unemployed young people in Egypt are in fact ployed middle class from sinking into the abject poverty that is those with advanced degrees. The problem is compounded by likely to provoke yet more social upheaval.” Moreover, in the fact that, in part because employees lack any solid “means Egypt, steps need to be taken to narrow the disparities between to evaluate the applicant’s competence in an objective manner, public and private sector jobs, especially with regard to pay. In due to the lack of a formal and comprehensive qualification sys- surveying young Egyptian job seekers in the field of engineer- tem,” many jobs in Egypt are awarded on the basis of personal ing, the Brookings paper found that improving social benefits connections rather than whether or not the candidate is quali- and IT infrastructure added significantly to the attractiveness of fied. Meanwhile, Egyptian firms struggle to find qualified private sector work. workers, as job seekers desperately need work experience but Jobs and economic growth enjoy a symbiotic relationship, lack the means to acquire it. “Formal training after employment declares the WEF report. “Demand will be depressed and is almost entirely lacking, and vocational training opportunities growth will be sluggish unless more people return to work. for jobless and unskilled Egyptians are also limited.” A recent Above all, the restoration of confidence is needed.” Consumers ILO study in Egypt found that young Egyptians, particularly must believe in their jobs and their economic prospects in order women, encounter “serious difficulties” trying to land a job to spend as well as save. And businesses have to be assured of after graduation. CAPMAS data shows that “while female a rising demand for their products and services before they can school enrollment through secondary school exceeds 40 per- be confident that an investment is worthwhile. At the root of the cent, a study on school-to-work transition shows that only 4 per- problem in Egypt and other countries that suffer from chronic cent of females make the transition from school to career jobs structural unemployment is the fact that the social contract has as opposed to 30 percent of males in the same age group.” unraveled. “Young people who see no future for themselves feel Youth unemployment in the MENA region is predicted to hit increasingly disenfranchised. They have now been joined by almost 30 percent over the next four years, according to the protesters who believe that they are bearing the brunt of a crisis World Economic Forum, which “could lead to a severe weak- for which they have no responsibility, while people on high ening of social cohesion.” The damaging macroeconomic incomes appear to have been spared.” What is needed, more effects of joblessness include slow growth and wasted produc- than anything, is “an improvement in business confidence so tivity. “Youth unemployment, especially if of long duration, has that enterprises release some of the cash from their balance a scarring effect, increasing the likelihood of worklessness later sheets and begin to create jobs.” Simply put, it’s critical that in life and reducing the potential of lifetime earnings.” Chronic “good policies” that create jobs must be boosted, and “bad poli- unemployment also increases the likelihood of physical and cies” that discourage employment must be avoided. This might mental illness, taxing the health care system as well as the econ- sound like obvious advice, but many governments, including omy. But the WEF report stresses that the quality of available Egypt’s, have failed to follow it.
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Dining Out COURTESY COURTESY OF MIRAI LOVELY MIRAI TRIES A LITTLE TOO HARD BY MICHAEL BRAHA
y favorite restau- bill right there on the oily, brown paper door. The scene is stunning; her majesty rant in the world tablecloth. Only if he likes you will he the Nile is a sparkling beauty. Walking is a trattoria in share a laugh or two. He is no non- down the stairs past the two smiling Trastevere, a dis- sense—some would even say rude—but security guards, I gaze hypnotized at the trict of Rome, the food here is so good, so utterly gen- twinkling lights reflecting off the water not far from uine, that he doesn’t need to prove any- and the restaurant’s vast glass walls. where I grew up. The waiter brings the thing to you by being polite. That’s the What am I looking at? Is it the inside? Is Mfood while munching on tastes of things subtext. it the outside? I can’t really say, but I he’s put in his mouth on his way out of Cut to Mirai, a new “Asian fusion” like it. the kitchen. At the end of the meal, he spot brought to us by the owners of A dark suit rushes over to seat us. asks you what you had and adds up the Sequoia in Zamalek, which is right next He is all smiles. The décor is Eastern
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Dining Out MICHAEL MICHAEL BRAHA XXXXX
minimalist, sort of, with wood paneling The food arrives quickly, and it is There’s a table of six people behind and faux bamboo screens. Steam beautiful. There is Meiang Yuoun (LE me who are speaking Italian. My guest emanates from behind a bar, where 35), fresh vegetable spring rolls rolled points out that all of them have spent Egyptian-looking chefs in Japanese in rice paper with peanut sauce, and the better part of their meal staring at happi coats are busy steaming Tung Tong (LE 45), fried shrimp and their smart phones. Please guys, try to dumplings and cutting sushi. We sit vegetable wontons with sweet chili. make an effort, at least? In my world, down and open the menu, which is The Miso Soup (LE 30) is nice and hot food is not just about eating; it’s about actually a mini-book. It even has pic- with chunks of tofu and seaweed, and it sharing, being together. What could tures. It’s stylish, but it has too many comes in an interesting, curvy white these fellow Italians be thinking? But pages; it’s confusing me. There’s a big bowl. Then comes the sushi. We get the then I think that’s exactly what is tree in the middle of the room, encased Nigiri and Sashimi Set (LE 190), a wrong with a lot of fancy, fashionable in glass walls. It’s beautiful and majes- Green Dragon Roll (LE 75) and a Spicy restaurants. There’s something unreal tic, and I would like to touch it, but I Tuna Roll (LE 45). The fish is good, I about the whole experience. The food can’t. There’s a transparent but tangible have to say—really good. Not as good is good; the service is excellent. wall between the tree and myself. as that time in San Francisco, but still. Nothing wrong with being pampered. The solicitous waiter comes by sev- It comes all together on a big white My soul simply needs more. eral times to see if we need help with plate, a rainbow of raw fish garnished We pay the bill and finish our drinks the menu. In the end, we get soup, with red and orange shavings of carrot and walk outside into the breezy spring some Thai and Vietnamese appetizers and beet and a green rosebud of wasabi. evening. The city lights are still twin- and a big plate of sushi. Ordering is out The waiter comes by every three sec- kling on the river as we hail a taxi to go of the way, thank God. What about onds to change the ashtrays or move home. The driver asks for double the warm sake? Mmm, not possible, sorry, the water glasses around or ask if we regular fare. And he does so with a big but you can have a mojito (LE 48) are sure that everything is alright. He’s smile. instead. The manager brings us cards trying his best to be professional, but I with personalized Chinese horoscopes wish he would leave us alone. My guest (seriously?). Mine is the year of the is so pretty, I would like to keep look- Mirai snake, and it tells me I’m going to have ing at her. I don’t need you tell me that 53 Abou El Feda Street a lucky year. The mojito arrives, and it I am about to eat raw fish on a prism of Zamalek has barely any rum in it. “Very sorry rice, thank you very much. I miss my 2735-0014 sir, let us do it again.” no nonsense hometown trattoria. Open Daily 1 p.m. to 1 a.m.
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Brazilian culture WAR DANCE BY TAMER HAFEZ SOHA EL GABI
ne recent sunny Saturday morning at the Internet access made it possible for Tigre to market his pas- Aquarium Grotto (better known as Fish sion to the Egyptian public. “From 2000, things started pick- Garden) in Zamalek, a group of friends pre- ing up,” he says. pared to square off. Rather than throwing Today there are three capoeira schools in the Egyptian capital, fists or stones, however, the performers which also include Olorum Bahia, led by a Brazilian-native and used their grace, strength and rhythm. They veteran capoeirista of 22 years known simply as Passoka, and were drumming up publicity for the Brazilian martial art of Capoeira Brasil Egypt (inside Fibers Gym in Maadi, Ocapoeira, an exuberant mix of dance, acrobatics and music 01093682692), which was started as part of Grupo Capoeira that was first developed by African slaves in the 16th Century Brasil, an organization that teaches in over 15 countries. and has become increasingly popular in Cairo in recent years. The recent capoeira showcase at Fish Garden marked the “Nothing combines music and sports like capoeira,” says first time Egypt’s three competing schools combined forces to Yassin Gad El Hak, a 29-year-old French teacher who began drum up interest and new students. To the rhythms of live tra- studying just over a year ago after seeking an activity to help ditional Afro-Brazilian music, several dozen students took him recover from a shoulder injury. Now an advanced student turns performing a graceful face-off of twirling kicks sur- at Olorum Bahia Capoeira Egypt (01000555677/ rounded by a roda, a circle made of clapping, singing 01144442065), which has locations in Mohandeseen, capoeiristas and musical instruments. Capoeira was invented Zamalek and Heliopolis, among others, Gad El Hak—whose by African slaves who had been shipped to Brazil by capoeirista name is Isso (“That’s it” in Portuguese)—now Portuguese conquistadors in enormous numbers, many of takes five classes a week and even helps out with beginners. them to work in sugar cane fields under inhumane and gruel- “The way you move with the music is beyond comprehension ing conditions. Still, rebellions were rare due to a lack of and beautiful to watch,” he says. weapons and the disparate cultures of the Africans, and Mohamed El Saied, aka Tigre (Tiger) founded Egypt’s first capoeira arose as a clever combination of martial arts and tra- capoeira school, Capoeira Coquinho Baiano Cairo Egypt ditional African and Brazilian dance by which slaves could (formerly TK Capoeira, 18 Emad El Din St., 01144874799) practice fighting techniques without being detected by the in downtown Cairo in 2000. Seven years previous, he had colonial authorities. With the abolishment of slavery in the stumbled upon the form after meeting a capoeira trainer who late 19th century in Brazil, capoeira found new uses by crim- was visiting Egypt on business. The advent of widespread inals and warlords who employed capoeiristas as bodyguards
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Brazilian culture
and hit men, and it was strictly banned. Practitioners adopted nicknames, or apelidos, to avoid being arrested, a tradition that has endured. As it remained an underground practice until nearly the mid 20th century, capoeira developed into several distinctive styles. Conveniently, Egypt’s three schools each train in a different one, according to the specialty of the lead instructor. Capoeira Coquinho focuses on the Old Angola style, which is slower and “needs a lot of muscle control and flexibility,” explains Tigre. The name goes back to the beginning of slavery in Brazil, when Africans were shipped to Luanda, Angola on the West African coast for transport to the Americas and hence subsequently known as Angolans regardless of their home country. Mohamed Bassyony, or Habibi, the lead teacher at Capoeira Brasil Egypt, prefers the Banguela style, known for its acrobat- SOHA EL GABI ics and fluid, graceful movement. Olorum Bahia Capoeira mainly trains in Capoeira Regional, which places greater Capoeira is impressive to watch, and one might think it requires emphasis on its combative essence. Capoeira Iuna, the only the strength of Hercules and the flexibility of a pretzel. It doesn't, style not represented by a local institution, is a highly technical say the local capoeiristas. Anyone, regardless of their age, sex, version of Capoeira Regional that is only practiced by skilled weight or physical fitness can take it up. Olorum Bahia currently capoeiristas. Kamal Anis, known as Gente Boa (Good Guy), a has one 52-year-old student, while Capoeira Brasil has a 12-year- 33-year-old internal audit consultant who has been practicing old. Of course, the younger you begin, the better. “There are for five years, adds that visiting capoeira masters from Brazil moves like the backflip that are difficult if you start when you’re have visited periodically to train students in other styles. older,” says Isso, who nonetheless stresses that a background in Since the 1970s, when capoeira masters began emigrating dance or martial arts isn’t necessary and that students often grasp and teaching it around the globe, capoeira has become a sym- the wide range of capoeira moves more quickly than they expect. bol of Afro-Brazilian culture worldwide. In this tradition, the “People come to me dreaming of doing cartwheels, and before local capoeira schools are teaching students how to sing tradi- they know it, they are doing much more complicated stuff,” says tional capoeira songs and play traditional musical instruments Gente Boa. like the berimbau, a tall, single string instrument that sets the One thing that’s sure is that the passion in the eyes of the tempo and tone; the pandeiro, a sort of tambourine; the agogo, capoeiristas is contagious. Nothing can beat the natural which resembles a bell; the atabaque, a traditional African high, says Habibi. Gente Boa adds that as well as burning drum; and the reco-reco, a bamboo instrument that’s like a calories, strengthening muscles and improving balance, Brazilian version of a washboard. There is a complex code of capoeira provides a social outlet and a graceful way to blow etiquette. The lead berimbau player always signals with his off steam. “I get to meet new people and know old friends bow when the roda begins and ends. better,” he says. SOHA EL GABI
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Chamber news
BOARD OF GOVERNORS PRESIDENT MEMBERS OF THE BOARD Anis A. Aclimandos, Transcentury Associates Ahmed El Daly, Dale Carnegie Training Egypt (Westwood Group) EXECUTIVE VICE PRESIDENTS Amr Allam, Misr Sons Development - Hassan Allam Sons Curt Ferguson, Middle East & North Africa Business Nevine Loutfy, Abu Dhabi Islamic Bank Unit, The Coca-Cola Company Sherif Kamel, School of Business, The American Omar Mohanna, Suez Cement Group of Companies University in Cairo Thomas Maher, Apache Egypt Companies
VICE PRESIDENT, MEMBERSHIP PAST PRESIDENT Dalia Wahba, CID Consulting M. Gamal Moharam, MGM Financial & Banking Consultants COMMITTEE VICE PRESIDENT, PROGRAMS Amr Talaat, IBM CHIEF EXECUTIVE OFFICER CHAIRS Hisham A. Fahmy VICE PRESIDENT, LEGAL AFFAIRS (July 2013 to June 2014) Said Hanafi, Orascom Hotels & Development
TREASURER Sherif El Kilany, Allied Accountants-Ernst & Young International Cooperation Chair: Hanaa El Hilaly, Social Fund for Development � Co-Chair: Magda Shahin, The American University in Cairo
Entrepreneurship and Innovation Investment & Capital Market Agriculture and Food Security Chair: Ahmed Bedeir, Dar El Shorouk Chair: Alaa El Affifi, Citadel Capital Chair: Tarek Tawfik, International Company for Agricultural ��� Co-Chair: Nader Iskander, Egypt & Middle East Co. (EME) Co-Chair: Sherif A. El Akhdar, Beltone Private Equity Production & Processing Co-Chairs: Tony Freiji, Wadi Holding Seif ElDin ElSadek, Agrocorp For Agriculture Investment Health & Pharmaceuticals Legal Affairs Chair: M. Maged El Menshawy, Manapharma Chair: Ahmed Abou Ali, Hassouna & Abou Ali Law Offices Co-Chairs: Ahmed Ezz El Din, Johnson & Johnson Medical Egypt � Co-Chairs: Emma El Meligi, Pepsi-Cola Egypt Banking and Finance Mohamed S. Roushdy, Amoun Pharmaceutical Co., SAE Girgis Sarwat Abd El Shahid, Sarwat A. Shahid Law Firm Chair: Hussein Abaza, Commercial International Bank (CIB) Co-Chair: Zeinab Hashim, National Bank of Egypt Marketing Chair: Hisham Ezz El Arab, Danone Egypt Human Resources Co-Chairs: Tamer Hamed, Procter & Gamble Egypt, Ltd. Chair: Somaya El Sherbini, Microsoft Egypt, LLC Corporate Social Responsibility (CSR) Tamer Elaraby, Nielsen Co-Chair: Maisa Galal, General Motors Egypt, SAE Chair: Mohamed El Kalla, Cairo for Investment & Development Co-Chair: Shereen Shaheen, Pepsi-Cola Egypt Real Estate Chair: Mohamed Abdallah, Coldwell Banker Affiliates of Middle East & Greater Africa. Industry & Trade Customs and Taxation Co-Chair: Hala Bassiouni, Egyptian Housing Finance Company. Co-chairs: Mostafa El Halwagy, The Egyptian Company for Chair: Hassan M. Hegazi, Master Trading, SAE International Touristic Projects (Americana) Co-Chairs: Hossam Nasr Transport & Logistics Omar El Derini, FAOM Consult/ Red Wing Sherin Noureldin, Moore Stephens Egypt Chair: Alfred Assil, Menarail Transport Consultants Suresh Narayanan, Nestle Egypt � Co-Chairs: Amr Kabil, National Stevedoring Group Amr Tantawy, DHL Express Education Information & Communications Technology Chair: Amr Ezzat Salama, The American University in Cairo Chair: Bassel Mubarak, Oracle Egypt Travel & Tourism Co-Chair: Elizabeth Khalifa, Binational Fulbright Commission in Co-Chair: Reem Asaad, Raya Holding Egypt Chair: Karim El Minabawy, Emeco Travel � Co-Chairs: Cesare Rouchdy, Four Seasons Hotels and Resorts, Egypt Roland Bunge, Carlson Wagonlit Travel Energy Insurance Chair: Khaled Abu Bakr, TAQA Arabia Women in Business Chair: Alaa El-Zoheiry, Arab Misr Insurance Group|gig Co-Chairs: Basil El Baz, Carbon Holdings Chair: Hala El Barkouky, Allied Business Consultants Co-Chair: Rabih Abdel Khalek, Pharaonic American Life Insurance Osama ElSaid, Masa Electro Co-Chairs: Ghada Hammouda, Citadel Capital Company (Metlife Alico) Thomas Thomason, Egyptian Refining Co. Jailan Shindy, Shindy & Associates, Inc.
American Chamber of Commerce in Egypt – Tel: (20-2) 3338-1050 – Fax: (20-2) 3338-1060 For more information about AmCham services and news, please visit www.amcham.org.eg or our US mirror site www.amcham-egypt.org Chamber_ChamberSection-07.qxd copy 4/2/14 5:44 PM Page 2
Events
MARKETING Find your bliss Ali Rafea wanted to create something that would change people's lives. So he created Bey2ollak, an award-winning mobile application that enables users to share real-time traf- fic information in and around Cairo and Alexandria. Rafea, now the head of marketing and products at Bey2ollak, spoke at a March 4 executive development session sponsored by AmCham’s Marketing Committee. With a background in computer science, he developed the app with the help of four of his cousins. “We thought of creating a platform where people could interact and help each other,” said Rafea. It was launched via Blackberry in 2010 and immediately went viral, with 6,000 registered users on the first day. One month later, Bey2ollak signed Vodafone Egypt as a sponsor. has more than 800,000 registered users, 250,000 Facebook fans He began his career like most people, with a regular job. After and 105,000 Twitter followers. It is still backed by Vodafone. college, Rafea joined a software house and later landed a spot Rafea stressed that the founders of Bey2ollak were not dri- on Vodafone's marketing team, where he was responsible for ven by money, as they didn’t make a profit until 2012, but managing some LE 500 million. Rafea noticed that people were rather by the desire to help solve one of society’s ills. talking to each other daily about traffic developments with However, he laments that entrepreneurship has not been friends and co-workers. So he created a cross-platform via appreciated in Egypt, with most people simply seeking a which people could exchange such information using crowd- comfortable job guaranteeing a stable career. “It is important sourcing, social interaction and localization. Today, Bey2ollak to define what happiness and success is for you,” he said.
HUMAN RESOURCES Engaging people Perhaps nothing is more important to an organization’s suc- cess than the level of passion and engagement of the staff. Employee engagement is a term that refers to the staff’s involvement and enthusiasm toward reaching a firm’s goals, said Hisham El Bakry, managing director of Leadership Training and Consultancy, at a Feb. 3 interactive session hosted by AmCham's Human Resources Committee. People often mistake satisfaction for engagement. “You can have a satisfied employee who is not engaged.” According to a recent global Gallup survey, only 13 percent of the workforce is actively engaged in their jobs. Bakry said the two factors behind employee engagement are a sense of purpose and mission and how much control a worker possesses over her have allocated time—uninterrupted time—to make sure that job and work environment. Staff members at NGOs, for exam- people are engaged,” he stressed. ple, tend to be highly engaged, perhaps because they feel that Team-building and training employees to work together are their jobs are meaningful. Enabling employees to do things like key. Workers should be allowed to connect with their organiza- choose their own projects builds their sense of engagement. A tion’s leaders. Building trust among employees and managers is big killer, on the other hand, are continuous interruptions in the also an important factor. “People sometimes feel mistrust, and form of constant messages from multiple platforms. “We need to that negatively impacts the organization,” he said.
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MARKETING Glass half full The tougher the times, the greater the chance to distinguish your- self, said Tamer Hamed, commercial operations director at Procter & Gamble Near East. He spoke at a Feb. 17 meeting of AmCham’s Marketing Committee entitled “Winning in Tough Times: Are You Prepared to Win with Your Business Regardless of the Challenges?” With political turmoil over the last three years creating currency devaluation, business disruptions and instability for employees, Hamed said the importance of leader- ship cannot be ignored. Dialogue is key, as is maintaining healthy profits. “You need to have enough margins so you can customers and employees. HSBC invested significantly in tech- invest back in the business,” he said. P&G invested substantial- nology during recent years; they were the first to launch mobile ly in improving its wide array of household products and devised banking last year, said Sayed. Thanks to these successful strate- a strategy by deciding on a role for each of the brands in its port- gies, HSBC continued its impressive growth. folio. As a result, the firm has consistently registered double- Frank Konings, chief technical officer at real estate developer digit annual growth. SODIC, described how before January 2011, his firm had been Mona El Sayed, head of commercial banking at HSBC Egypt, pitched toward a luxury market. That all changed in the after- said that as well as the political and social changes facing Egypt, math of the revolution. “We widened our segment downward to the bank was undergoing a massive internal restructuring. more of an upper-middle income sector,” said Konings. In 2011, Surviving the storm meant growing, seeking opportunities and the company brought many design and management tasks back continuing to deliver growth and maintaining its commitment to in-house rather than relying on outside consultants.
WOMEN IN BUSINESS Speaking her mind Lamees El Hadidi, the well-known Egyptian television host, says she’s had to make some difficult decisions along her jour- ney to success. The first was sacrificing a job with a prestigious newspaper after she refused to carry out an assignment she believed would distort Egypt’s image. On Feb. 26, AmCham's Women in Business Committee hosted Hadidi as part of a series on successful Egyptian women entitled “Fighting the Odds: The Journey to the Top.” Hadidi spoke about her career in the media and the challenges she faced. She takes pride in the role she played leading up to the mass protests of June 30, 2013, consid- ering it one of her most significant achievements. “The country's thing as an objective journalist. The media is driven by political identity was changing,” she said. Discrimination against women and financial motives, she declared. “I am biased for a principle and Coptic Christians was widespread, she said, and controver- that I believe is right.” She voiced outspoken criticism of Morsi’s sial measures concerning female circumcision and the marriage regime on her talk show, “Hona El Assema” despite receiving of young girls were being discussed. Hadidi fiercely opposed the threats. She said she was forced to move after Islamist TV chan- Islamist regime of President Mohamed Morsi and wasn’t afraid nels broadcast her home address and phone number. Although to voice her criticism. she believes she came perilously close to getting herself jailed or “I have never been impartial,” acknowledged Hadidi. Known assassinated for airing her opinions, El Hadidi continued to for her outspoken political views, she believes there is no such express her views against “religious backwardness.”
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Events
INTERNATIONAL COOPERATION Spreading the wealth Though Africa’s GDP has grown steadily in recent years, “It has not been inclusive,” said Leila Mokaddem, resident repre- sentative of the African Development Bank in Egypt. The AFDB seeks to remedy that, she said at a March 2 meeting hosted by AmCham’s International Cooperation Committee. Regional GDP growth has expanded intra-African trade, she said, which strengthens regional cooperation as well as private sector growth. The bank has two strategic objectives in the region: inclu- sive growth and green growth. Within this are five operational priorities: regional integration; governance and accountability; skills, technology and infrastructure; and developing the pri- vate sector. AFDB supports both the private and public sectors growth” she added. AFDB is currently implementing 28 projects by offering financing in the form of loans with commercial here, with a current investment portfolio of almost $2 billion. terms, subordinated debt, equity and guarantees, among others. The bank’s 28 projects include four public sector loans (repre- Private sector investments must meet a number of criteria to senting 71 percent of its commitments), three project-assisting qualify for such financing, including following the country’s private sector loans (16 percent), two regular private sector loans economic plan, encompassing a developmental outcome and (12 percent) and 19 grants (1 percent). Mokaddem noted that demonstrating commercial viability. nearly 80 percent of the AFDB’s Egyptian portfolio represents The bank has an active private sector investment portfolio investment in the energy sector. The bank also offers technical worth $39.2 billion. “In Egypt, the private sector is the engine for assistance and financing for franchises.
ICT Connecting to the future Telecom regulators are focused on encouraging new investment and maintaining a healthy balance among Egypt’s current three mobile players as well as ensuring the rights of consumers and their access to information. On Feb. 4, Hesham El Alaily, exec- utive president of the National Telecommunications Regulatory Authority, spoke at a meeting hosted by AmCham’s ICT Committee. He explained that traditional telephone voice calling is steadily declining, while Internet applications that enable peo- ple to make voice and video calls for little or no money are booming. As online traffic worldwide is expected to increase sig- nificantly in coming years, “The devices will replace the humans,” he said. By 2050, 50 billion devices are expected to license enabling telecoms as well as Telecom Egypt, the coun- connect a global population of 9 billion souls. In the Middle East, try’s sole landline operator, to operate both fixed-line and mobile IP traffic is expected to grow by nearly 40 percent by 2017. For networks reflects how the industry is developing, he said. New Egypt to keep pace with this growth, it needs to invest in better regulations pertaining to issues of cyber-security, e-signatures and faster infrastructure to pave the way for the digital economy. and the transfer and ownership of data will also be implement- NTRA aims to double Egypt’s LE 30 billion mobile telecom ed. Significant achievements of 2013 were the launch of mobile sector in the coming decade by enacting policies that enable money services, he said, loosening restraints on mobile operators operators to provide a range of services. The so-called unified and launching an electronic vehicle tracking system.
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PETROLEUM Bracing for a long, hot summer “Our vision and strategy revolve around securing and satis- fying local demand for energy, delivered at reasonable prices in order to fuel sustainable economic development,” said Minister of Petroleum Sherif Ismail at a March 24 AmCham luncheon held at the Four Seasons Hotel Cairo at Nile Plaza entitled, “The Oil and Gas Sector in Egypt: Vision and Challenges.” In his talk, Ismail discussed the energy challenges Egypt faces and the policies being adopted by the ministry, which he hopes will help provide enough fuel to keep the country running in the coming years. As a string of blackouts have engulfed areas of Cairo in darkness since the beginning of the year, Egypt's energy crisis only appears to be getting worse. The unseasonable shortages have many experts saying that the country will face even more project, the North Alexandria Block, which had been expect- serious energy scarcity in the upcoming summer season, when ed to come online in the third quarter of 2014 but was electricity use spikes. Egypt currently gets about 96 percent of delayed due to objections by local residents, would have its energy from oil and natural gas, 3 percent from hydro bumped Egypt’s gas production by some 18 percent. power via the Aswan High Dam and 1 percent from coal. However, the project is currently not expected to yield fuel “This is way off global norms,” he said. Worldwide, some 60 until 2018. “The government is losing $15 million every day percent of energy comes from oil and gas, 10 percent from due to this delay,” he said. Egypt’s modest oil production nuclear energy and 20 percent from coal. remains stable despite the fact that most of its oil fields have Egypt is also overly dependent on fossil fuels, with 91 per- been operating since the 1960s. cent of its power coming from oil and gas compared to 27 Aging infrastructure is also a problem. For example, Egypt percent globally. Coal isn’t currently in use in Egypt, but lacks a port big enough to accommodate the 45,000 ton freighter worldwide it generates 41 percent of power, according to ship that ferries oil and gas. Instead, the ministry employs small- Ismail. “As it stands the energy and power generation mix er boats to move the fuel from ship to shore, an expensive stop- makes Egypt’s energy supply insecure, not economically gap measure. “It has been 14 years since the last major infra- viable and unsustainable,” he said. structure project came online,” said Ismail. “It is still the same Ismail said the situation is the consequence of Egypt’s fuel infrastructure that has to deliver an increasing amount of LPG.” subsidies policy which has kept the price of 80 octane fuel, for As the ministry struggles to pay for the subsidized fuel, it has example, at the same level since 1992. “We have never fol- fallen into debt and disputes with foreign oil and gas companies, lowed any norms or trends when pricing fuel, and we have Ismail said, but the ministry has recently resolved nine of the 19 never coped with international prices,” said the minister. This international arbitration suits. The Egyptian General Petroleum policy of insulating Egyptians from market energy costs has Co., which is responsible for concession agreements, has also left the government with an estimated $130 billion fuel subsidy paid off some $1.5 billion of its debt to oil companies, leaving it bill for fiscal 2013/14. “It will continue to increase as Egypt with a $4.8 billion outstanding bill. “It will continue to be a chal- seeks to grow its economy between 6 to 7 percent annually,” lenge to pay the remainder of the debts,” he said. said Ismail. He said the government will gradually remove However, these steps combined with the interim govern- subsidies over the next five to seven years. ment’s “roadmap” have improved conditions for the ministry, On the supply side, he said that many of Egypt’s gas fields are Ismail said. It has signed 29 new oil and gas concession agree- reaching maturity, having been in operation for nearly 10 years. ments worth $2 billion, with nine worth at least $200 million Egypt granted new concessions to foreign oil and gas companies still on the negotiating table. The petroleum ministry will soon in 2010 but none of these are producing fuel yet. However, the increase fuel allocation to power stations from 22,000 tons to government is hopeful about new concessions granted to gas 35,000 tons per day to meet higher electricity demand during exploration companies last year. Ismail hopes that an $11 billion the summer.
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Member News
PHILIPS
Shell and Philips Egypt have teamed up to install free Philips LED solar lighting systems in the Western Desert village of Haqfet Elgallas in the Matruh Governorate. In addition to outfitting 15 houses and 30 families with the tech- nology, they will also provide nighttime lighting for a local football field and community street lights. Local officials said they hope the projects will increase economic activity after-dark.
EXXONMOBIL
On May 20, ExxonMobil celebrated the grand opening of its School of Excellence at the Suez Advanced Technical Industrial School. The facility will use the STEM system, which combines science, technology, engineering and mathe- matics to train students in skills needed for jobs in the petrochemical industry. The new school is a collaboration between ExxonMobil, the Misr El-Kheir Foundation and the Ministry of Education.
DHL EXPRESS
DHL Express Egypt was awarded a 2014 Stevie silver award for its performance in 2013. Its customer service team also won Team of The Year – Recovery Situation honors for its performance in overcoming delivery issues created by curfews and security concerns during last year.s political unrest. Since 2002, the U.S.-based Stevies have been awarded internationally to recognize outstanding companies and businesspeople.
ABU DHABI ISLAMIC BANK
Abu Dhabi Islamic Bank has been named Egypt.s best Islamic bank for the fourth consecutive year by Islamic Finance News. The bank also won its first award for best Islamic finance mudarbah deal in connection with its handling of a $110 million capital finance agreement with the East Delta Electricity Company. The awards were presented to ADIB CEO and Managing Director Nevine Loutfy at a Feb. 24 ceremony in Dubai.
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Member News
Financial sector Hospitality/Tourism/Travel Turkiye Is Bankasi - Egypt Representative Office The Egyptian General Company for Mehmet Güzel Tourism and Hotels (EGOTH) Chief Representative Ayman Abdel Aziz Chairman & Managing Director Address: 2005C North tower, 27th Floor, Ramlet Boulak, Cairo Address: 4, Latin America Street, Garden Tel.: (20-2) 2461-9811/2/3 City, Cairo Fax: 24619810 Membership Type Tel.: (20-2) 2795-0603/ 7876 Membership Type Website: www.isbank.com.tr Associate Resident Fax: 27964830 General Website: www.egoth.com.eg Industrial machinery & equipment Petroleum Delemar Company for Aluminum Profiles Shell Lubricants Egypt Mahmoud Ahmed Abd Elaal Haroun Saher Hashem CEO Managing Director
Address: Industrial Area, Abou Rawash, Address: Corner St. 254 & 206, Degla, KM28.8, Entrance to the Smart Village Maadi, Cairo Tel.: (20-2) 3539-4033/ 36 Tel.: (20-2) 2755-7500/ 1 Fax: 35394037 Membership Type Fax: 25198818 Membership Type Website: www.delemaralu.com General General
Service providers Chevron Egypt Lubricants Hisham Mostafa El-Kabbany MEAComS Director & Country Representative Fatma El Zahraa Ahmed Abdel Mohsen Founder & Managing Director Address: Smart Zone, Smart Village Project Building B2401, Kilometer 28, Alexandria Address: 12, Mohamed Bayoumi Street, Ard Desert Road, El Golf Suite 22, Heliopolis, Cairo Tel.: +202 35358000 Membership Type Tel: (20-2) 2415-7254, 2290-8298 Fax: +202 35370549 General Fax: 24157254 Membership Type Website: www.chevron.com Website: www.meacoms.net Associate Resident
Personnel changes at member companies Ahmed El Sheikh Category: General Mohamed Sayed Mostafa Meneassy Category: General NEA BU General Manager - Pepsi-Cola Egypt Sector: Food & Beverages Area Manager - North Africa Sector: Information Technology ITS Global Business Solutions Nicolas Miegeville Category: Associate Resident Category: General Marketing Director - Saint-Gobain Glass Egypt Sector: Building Materials Geoffroy de Vaulgrenant Sector: Finance & Operations Director Academic/Educational/Research & Mohamed Mahran Cairo American College Development (R&D) Managing Director - Allianz Insurance Co. Category: Affiliate Egypt Sector: Insurance Doaa Fahmy Category: Affiliate HR Director - Danone Egypt Sector: Food & Beverages Mahmoud Said Mahmoud, CMA Category: Affiliate Finance Manager - Seaharvest Mohamed Shihab Sector: Petroleum Category: General Managing Director - Maersk Egypt Sector: Transportation Ahmed Salah El Din Adly Rashwan Category: Affiliate Shipping Agency Director - PricewaterhouseCoopers Sector: Accounting
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Affiliate Members Academic/Educational/Research & Development (R&D) Tamer Said Dahlia Kamal El Din Helaly Country Manager, Egypt, Lybia & North Sudan- GE Healthcare Deputy Director - INJAZ General Electric International Operation Accounting Information Technology Sameh Montasser Ahmed Mokhtar Hegazi CEO BDO Esnad - BDO Khaled & Co. Consultant - Master Trading, SAE Automotive Ahmed Khalil Khaled Hosny CEO - Raya Ventures Investments - Raya Holding Sales Director - Abou Ghaly Motors Mohamed Yousri Abdel Salam Building Materials Managing Director- Summit Technology Solutions Ahmed Aaly Wafik Mona Arishi Sales & Marketing Director - Saint-Gobain Glass Egypt Corporate Citizenship & Corp Affairs Manager, Wafik Emad Beshara IBM Egypt & MENA - IBM Human Resources Director - CEMEX Egypt (Assiut Cement Co.) Sherif Amin Chemicals Broadband Solutions Director - Etisalat Misr Mohamed Abu Eita Sherif El-Sanadily Vice President - OMYA Egypt Company for Mining Marketing Director - ITWorx Construction/Engineering Tamer Abd El-Aziz Heida Sayed Farouk Abdel Hamid Elbaroudy Corporate Communication Director - Raya Holding Senior Vice President - Arab Contractors (Osman Ahmed Osman) Nada El Mosalamy Financial Sector Member of the Board - MZ Investments Angie Helmi Director - Abraaj Investment Management, Ltd. Legal Services Sara Hinton Essam El Wakil Partner - Ibrachy & Partners Managing Director - Arab International Bank Tarek Mohamed Moheb Mostafa El Gazzar Lamise A. Negm Partner - Ibrachy & Partners Vice President - Citibank, NA Egypt Petroleum Mohsen El-Shammaa, PhD Abdel Rahman Yehia Helal Regional Director, EMP North Africa - Emerging Markets Payments Petroleum Sector Affairs Manager - Shell Lubricants Egypt Africa S.A.E. (EMPA) Gadir Galal Gawdat Karim Helal CFO - Shell Lubricants Egypt Chairman - ADIB Capital - Abu Dhabi Islamic Bank – Egypt Karim Galal Shady Kamal Vice President, HR & Administration - Setcore Group Chief of Staff & Corporate Finance Director - Barclays Bank Egypt, SAE Tarek El Hawary Sherif Abdel Aal Managing Director - TAQA Arabia Gas Arm Executive Director - Head of Investment Banking - Pharos Holding for Financial Investments Pharmaceuticals/Medical/Health Farouk Tarek Gaafar Food & Beverages Assistant General Manager - Al-Kamal Import & Marketing Co., WLL Robert Edwards Strategy & Business Development Director - Coca-Cola Egypt – Karim Mohamed Afifi Atlantic Industries COM - Al-Kamal Import & Marketing Co., WLL Hospitality/Tourism/Travel Real Estate Eman Elyasaky Fairouz Tayseer Area Director of Public Relations - Kempinski Nile Hotel Senior Legal Counsel - Majid Al Futtaim Properties-Egypt Hanan Moselhy Christopher Tutty HR Manager - Majid Al Futtaim Properties-Egypt Director of Sales & Marketing - Sofitel Cairo El Gezirah Hotel Asser Hamdy Industrial Machinery & Equipment Directory of Hospitality - Emaar Misr for Development Amro Kandil Director of Services, GE Healthcare - General Electric International Alaa Abdullah Zayed Operation Managing Director - Al Rowad Group
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Member News
Changes in company details: Change in titles
MadarCapital Investment Management TAQA Arabia Gas Arm Category: Associate Resident Address: 15 Ahmed Sabry Street, 1st floor, Zamalek, Cairo Hala Abdel Hamid AbouBakr Sector: Petroleum CFO National Telecommunications Corp. (NTC) Phone: (20-2) 3345-5615 - Fax: 33455618 Evyap Egypt TAQA Arabia Gas Arm Category: Multinational Hosam Sabry Sector: Address: 12 & 13 H/1 El Nasr Street, New Maadi, Cairo President Pharmaceuticals/Medical/Health Phone: (20-2) 2517-4588/ 2 - Fax: 25174589
RAMW for Tourism & Hotels AIG Egypt Insurance Company S.A.E. Category: Affiliate Phone: (20-2) 2389 2050/1/2 - Fax: 2389-2104 Tarek F. Tadrous Sector: Insurance SVP, Chief Financial Officer and Operations Cairo Financial Holding Address: 7, Lazoghly St., 8th Floor, Isis Building, in front of the US Embassy, Garden City, Cairo ExxonMobil Egypt, SAE Category: Affiliate Hassan Darwish Sector: Petroleum WorleyParsons Engineers Egypt, Ltd. Egypt Logistics Manager Address: Level 3, Plot 69, 90th St., 1st Sector, 5th Settlement, New Cairo, Cairo Bakier Stationery Address: 33 Road 269, New Maadi, Cairo For any change to contact information, please contact the Phone: (20-2) 2520-1296 - Fax: 25201293 Membership Services Department at the Chamber’s Office Derya Travel-Representative Turkish Airlines in Egypt(GSA) Tel: (20-2) 3338-1050, ext. 0016 – Fax: (20-2) 3338-1060 General Sales Agent E-mail: [email protected] Address: 17 Kasr El Nil St, Talaat Harb Square, Downtown, Cairo
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Company Member Benefits Expiry Hotels & Restaurants
Cairo Marriott Hotel All AmCham members are exclusively entitled to a 15% discount on December 31, 2014 food and beverages at all Cairo Marriott outlets (This offer does not require having a room at the hotel) In addition to a special accommodation rate of: • $100 per single room per night (B&B at Omar’s Cafe) • $115 per double room per night (B&B at Omar’s Cafe) • 25% discount on laundry during your stay * Subject to availability and prior reservation, valid at any day of the week. * Rate is subject service charge and taxes. * Offer valid for members only and has to be reserved through and used by the member.
Four Seasons Hotels Enjoy 15% discount in all restaurants (food and non-alcoholic bever- December 31, 2014 and Resorts, Egypt ages only) as well as spas at all Four Seasons Hotels in Egypt. All AmCham members are exclusively entitled to a 30% discount on June 30, 2014 Semiramis accommodation at weekends (Thursdays, Fridays & Saturdays) InterContinental Hotel • L.E 699++ per single and double Superior Nile view room based on bed and breakfast In addition to: - A special Restaurants Packages In Weekdays (Sundays to Wednesdays). - A special Packages on Spa, Health Club & Laundry Packages * Offer includes 25% discount on Laundry services. * Offer includes 50% discount Parking
Steigenberger Nile Enjoy an exclusive special discount in the heart of the Nile at August 30, 2014 Steigenberger Nile Palace Luxor with a 10% discount on accommo- Palace Luxor dation on all room types and meeting packages as well. *Rate is based on Bed and Breakfast.
Airlines EgyptAir Enjoy special preferential reductions on all classes on EgyptAir August 30, 2014 international flights ONLY.
No letters required when purchasing your ticket, just have your 2014 AmCham membership card.
Booking is also available through Astra Travel office according to Astra Travel terms and conditions. Optical
Magrabi Group Use your AmCham 2014 membership card to have an exclusive December 31, 2014 15% discount on medical frames, sunglasses and lenses available at all Magrabi Optical stores in Egypt.
Please visit AmCham’s Cyberlink on http://www.amcham.org.eg/cyberlink for more information on all of the above AmCham benefits AmCham Egypt members can now enjoy the benefits offered by AmCham Abo Dhabi, Lebanon, AmCham Morocco and AmCham Tunisia as AmCham MENA Council members. For details, please visit http://www.amchammena.org/index.asp?p=1
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Advertorial
BURBERRY CHIPSY
Burberry, founded in 1856, has launched its latest women’s fragrance, The snackfood giant along with its partner Lay's is introducing five new Brit Rhythm. The new fragrance is a mix of traditional and modern scents, international flavors for their popular chips. The new flavors are Brazilian with top notes of English lavender, pink peppercorn and neroli. Its heart Mixed Grill, Japanese Sweet and Sour, Mexican Chili Con Carne, Spanish notes are orange flower, orris and blackberry leaves, with its baseline Black Olive and South African Feta and Tomato. The five flavors are being comprising vetiver, musks and a selection of wood fragrances. It all comes marketed under the company’s Survival of the Tastiest campaign, with together in a smoky pink liquid. The fragrance will be offered in eau de only the winning flavor surviving to become a permanent addition to toilette (three sizes), body lotion (150 ml), body splash (150 ml), body Chipsy's offerings. The five new flavors also required a new production wash (150 ml), deodorant (100 ml) and hair mist (50 ml). line that cost $140 million and employs 9,000 workers.
JAGUAR LANCÔME PARIS
The official Jaguar dealership is now offering the latest XJ luxury sedan At Beyman, the high-end cosmetic and fragrance outlet in the Four updates for 2014. The basic model has a 2.0 liter four-cylinder tur- Seasons Cairo at Nile Plaza Hotel, Lancôme has launched its entire bocharged engine with a power output similar to the normally aspirated lineup of female cosmetic products for the first time in Egypt, includ- 3.0 liter engines. It also offers a 3.0 liter diesel engine, for the lowest fuel ing skincare products and custom fragrances. The event was attend- consumption figures in the lineup and the XJ R, a bespoke model that ed by artists and celebrities, who were offered free skin and makeup comes with custom designed front and rear bumpers and side sills. It will treatments from Lancôme. The brand was founded in 1935 by have a 550bhp, 5.0 liter engine with unprecedented speed and new Armand Petitjean and has been a subsidiary of L'Oreal since 1964. levels of luxury and comfort with its yacht-inspired interior.
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GM MERCEDES-BENZ
Chevrolet is launching its all-new Optra, a small family sedan, to replace With only one motor show scheduled for 2014, Mercedes-Benz Egypt the current model. The new design is more streamlined and aerodynam- seized the opportunity to launch 11 new models, including the latest S- ic. The car has a bigger interior and a 10 percent larger trunk, comfort- class and CLA, all three variants of the E-class, the GLK, B-class and the ably storing up to 440 liters. It comes with the usual array of options, A-class. The S-class will come as an S400 model and is the first car with a including parking sensors and USB and AUX ports for music. It will be petrol-electric hybrid engine to be sold in Egypt. In 2013, Mercedes-Benz offered with an all-new 1.5 liter, 4-cylinder engine which is geared toward sold 3,000 cars, almost 3 percent more than in 2012, despite the overall fuel efficiency, using just 7.3 liters per 100 kilometers. The price is set to new car market shrinking by 7 percent, according to Zakaria Mackary, start at LE 128,000 for the basic model. director of sales and marketing.
ESSIE TOYOTA
Noting that Egypt is a trendsetter for the region, Essie, one of the Toyota Egypt showcased its entire lineup of vehicles at the Automech- world’s top nail polish brands, is introducing 100 shades locally. Its Formula car show, held from March 13 to 18. On display were the lat- polishes are long-lasting and have a unique no-chip formula. Essie is est iterations of the Corolla, Yaris, Avanza Fortunner 4X4 and Auris, available in over 100 countries and has been worn by A-list celebrities which are already hugely popular in the domestic market. It has also on red carpets at the Grammy Awards, the Golden Globes and the brought out the Land Cruiser, Rav4 and Camry, all newcomers to Oscars. Egypt. Toyota is opening a spare parts hub in Sadat City to stock Toyota Egypt maintenance centers and outlets as well as a new Ismalia maintenance center.
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Announcements
Jobs AMCHAM RECRUITMENT CENTER Code Vacancies Company Name 77981 Deputy IT Manager Alwaseet for Advertising & Publication 77951 Packaging Area Section Head GlaxoSmithKline- GSK 77939 Financial Manager SADKO - Group 77801 Marketing Manager United Beverage & Food Co. (UBF) 77691 Property Manager Paradise Capital Holding for Financial Investments S.A.E 77621 Material Planner Franke Egypt For more information about these jobs and others, visit: www.amcham.org.eg/recruitment – e-mail: [email protected], Tel: (20-2) 333 88 220 Ext. 1513 - 1514 Fax: (20-2) 333 73 779
Top Tenders TOP TENDERS FROM TAS Client Bid bond Description Deadline Specs fees Sectors Three tenders for the conducting the asphalt works (base layers) for streets within General Authority for New Urban Societies, Al April 15, 2014 350,000 LE Construction Projects subordinated locations. Pre bid meetings are set for 3/30, 3/31 & 4/1/2014. Bidders Obour City Development Agency 30,000 LE Local Administration need be classified by the Contractors Federation not less than < grade 3 > for the Authorities first & third job & not less than < grade 4 > for the second job.
150,000 LE Electromechanical Works Request of international offers for the supply & erection of a PVC pipes production line to Suez Canal University, the University Hospital April 08, 2014 Education 500 LE use as collector pipes with related spare parts under finance from the Islamic Development Bank. This is a repeated tender with extended deadline. Ref. 2/ 2014. Beneficiary Sectors Generating Sectors www.amcham.org.eg/TAS For further information, contact the Business Information Center at AmCham Egypt Tel: (20-2) 3338-1050 – Direct: (20-2) 3761-9641 • Fax: (20-2) 3338-9896 • E-mail: [email protected] Website: www.amcham.org.eg • US Website: www.amcham-egypt.org
U.S. Exhibitions Listings are now available on our website:www.amcham.org.eg Exhibitions related to the following sectors are scheduled for the upcoming months Sector Show Name Website Contact Person Tel # April Environmental Waste Expo 2013 www.wasteexpo.com Rania Mekhail 2797-3487
ICT-Broadcasting The 2014 NAB Show www.nabshow.com Hend El Sineity 2797-3482 May Energy-Oil Offshore Technology Conference www.otcnet.org/2014 Mai Abdelhalim 2797-2146
Hospitality The National Restaurant www.restaurant.org Mai Abdelhalim 2797-2146 Association Restaurant, Hotel- Motel Show (NRA Show)
For more information about these exhibitions, please contact: The Commercial Service at the US Embassy Tel: (20-2) 2797-2330/ 40 - E-mail: [email protected]
*Please refer to the Commercial Service at the US Embassy for any updates on the exhibitions.
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Benefits
THE CLUB HOUSE - UPTOWN CAIRO EMAAR MISR FOR DEVELOPMENT Emaar Misr for Development is pleased to offer 20% discount on food & Non- alcoholic beverages only at the below venues at the club house Uptown Cairo: •Oliveto restaurant "Serving Italian food" •Baslico restaurant "Serving International food" •19 Bar In addition to: -10% discount on Business meetings and social/private events (Excluding weddings and Engagement parties) - VIP Treatment “Hot towel, welcome drink” - Usage of the Cigar Lounge anytime. - Free Wi-Fi - Free parking. *Reservation has to be in advance for the Special Occasions"
***Discounts will be granted for AmCham members upon presenting their AmCham 2014 membership card*** For more information, please contact: The Club House Guest Services: Telephone: (202) 2503- 2133 Mobile: (20)12-835-57000 - Email: [email protected] Ahmed Maher (Sales Person): Telephone: (202) 2503-2082 Mobile: (20)10-920-11180 - Email: [email protected] Please visit AmCham’s Cyberlink on http://www.amcham.org.eg/cyberlink for more information on all AmCham benefits Offer is valid until March 1, 2015
CONRAD CAIRO HOTEL
Is pleased to offer 15% discount on Food & Beverages in the below restaurants: - Oak Grill - Kamala ,Asian bar and dining restaurant - Solana all day dining restaurant -Jayda Lounge and Bar (serves Lebanese cuisine) * Discount is applicable on the mentioned Food & Beverage outlets * The discount is not applicable on public holidays * Discount is not applicable on alcoholic beverages In addition to a special accommodation rate of: $90 per single room based on bed and breakfast $100 per double room based on bed and breakfast * Above rates include free internet and free upgrade subject to hotel availability
***Discounts will be granted for AmCham members upon presenting their AmCham 2014 membership card*** For more information, please contact: Food & Beverage bookings: Rasha Said, Food & Beverage Coordinator Telephone: (202) 2580-8410 - Email: [email protected] Room reservations: Telephone: (202) 2580-8000 (Direct line); (202) 2580-8888 Email: [email protected] Please visit AmCham’s Cyberlink on http://www.amcham.org.eg/cyberlink for more information on all AmCham benefits This offer is valid until December 31, 2014
The BUSINESS MONTHLY Classifieds section is open exclusively to AmCham member companies. Text ads are £E 150 for up to 30 words, £E 5 per additional word. Abbreviations, phone numbers and e-mail addresses count as one word. Display ads are £E 100 per cm in height, per column (max. 20cm in combined total height). Discounts are offered for regular advertisers and repeat bookings. Insertion orders, payment and ad content must be received by the 15th of the month preceding publication. All classified ads subject to editorial approval. For more information, or to place a classified ad, contact Amany Kassem at (20-2) 3338-9890, fax (20-2) 3338-0850, e-mail: [email protected]
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Media Lite A Glance At The Press
“This isn’t just any blackout—it’s the anniversary of last year’s first blackout.”
Youm7, March 1
Media Lite is a satirical review of items published in the local and international press. All opinions and allegations made in them belong solely to the original publications and no attempt has been made to ascertain their veracity.
PLAYING HOOKY galloping across the span from Zamalek of antiquities authorities. Apparently, the Panic ensued in a village in Sohag to Dokki. As the rider reined his trusty steed driver transporting the relics had re-routed Governorate when a student climbed the toward the tight exit onto El Batal Ahmed them to the museum after finding his instruc- tower of the local mosque and used the Abdel Aziz Road, he encountered an tions fishy, while museum security offi- megaphone to broadcast an urgent warn- obstacle—a car wreck at the bottom of the cials—also not wanting to take any ing that bombs had been planted inside exit. According to eyewitnesses, he chances—signed for the unexpected deliv- several nearby schools. Of course, classes demonstrated top-notch horsemanship ery, figuring they’d guard the pieces until were dismissed and the police sent every- skills, diverting his mount, which leapt the someone claimed them. Why no one ever one home. After no explosives turned up, height from the bridge to the road bothered to question either the driver or the investigators discovered that a school beneath, avoiding the accident. A police guards is unclear—perhaps police didn’t teacher had bribed the boy to report the officer detained the triumphant duo at the want to risk getting into trouble either. bombs as part of an elaborate ruse to next stoplight, but they got off scot-free, Al Akhbar, March 8 leave early. The shiftless pedagogue had there being no law prohibiting hoofed ani- decided to take matters into his own hands mals on Cairo’s thoroughfares. UNHAPPY MEAL after the school principal refused to give Al Shorouk, March 20 Tourism police authorities were awakened him the day off, even though he was in the wee hours of March 26 to learn that scheduled to embark on a vacation on the FOUND AGAIN a man had climbed to the top of The afternoon train. One can safely assume A three-year mystery around the disap- Great Pyramid of Cheops and was threat- the educator has now been granted his pearance of 67 priceless pharaonic ening to jump unless someone brought him wish for time off. relics has been solved. In February a plate of French fries. He was eventually Al Ahram, March 18 2011, the pieces departed the Luxor coaxed down from the ancient landmark, Museum for a restoration lab in Cairo. though it is unclear whether he got his DODGING TRAFFIC Unfortunately, they never got there. French-fry fix. Unfortunately, he faces Drivers on the 6 October Bridge almost Recently, the missing artifacts turned up charges for his unorthodox fast-food deliv- caused a pileup one recent afternoon inside the Egyptian Museum, where they ery methods. when they spotted a mounted horse had been all along, under the safe care Al Ahram, March 26
64 I Business Monthly – April 2014