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Strengthening Entrepreneurship and Enterprise Development (Seed)

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Strengthening Entrepreneurship and Enterprise Development (Seed) STRENGTHENING ENTREPRENEURSHIP AND ENTERPRISE DEVELOPMENT (SEED) PLASTICS VALUE CHAIN MAPPING AND ASSESSMENT Technical Report No. 20 September 2017 This publication was produced for review by the United States Agency for International Development. It was prepared by AECOM. Page 1 STRENGTHENING ENTREPRENEURSHIP AND ENTERPRISE DEVELOPMENT (SEED) PLASTICS VALUE CHAIN MAPPING AND ASSESSMENT CAIRO, EGYPT SEPTEMBER 26, 2017 Submitted to: Ingi Lotfi, COR USAID/Egypt Authors: Magdy Gharib Farag (SEED Plastics Industries Technical Advisor) Ahmed Korachy (SEED Plastics and Auto Feeding Industries Value Chain Advisor) Other Contributors: Ahmed Hussein (SEED Team Leader – Integration of MSMEs in Value Chains) Hassan El Badawy (SEED Program Assistant – Integration of MSMEs in Value Chains) Activity name: C.1.1.1 Value chain assessment and cost-benefit analysis Contract: AID-263-C-16-00003 DISCLAIMER: The authors’ views expressed in this document do not necessarily reflect the views of the United States Agency for International Development or the United States Government. Page i USAIDS Strengthening Entrepreneurship and Enterprise Development (SEED) TABLE OF CONTENTS List of Tables ................................................................................................................................................................ iv List of Figures ............................................................................................................................................................... iv Acronyms and Abbreviations .................................................................................................................................... v Acknowledgements .................................................................................................................................................... 1 Executive Summary .................................................................................................................................................... 1 Background and Scope of Assignment ................................................................................................................... 3 Introduction ................................................................................................................................................................. 5 Plastics Industry Overview and Benchmarks ........................................................................................ 5 Plastics in South Africa: A Model of a Developing Country .............................................................. 7 Conclusion ..................................................................................................................................................... 9 Egypt’s Plastics Value Chain: Overview ............................................................................................................... 10 Value Chain Mapping And Assessment................................................................................................................ 12 Egypt Plastics VC Map .............................................................................................................................. 13 Plastic Raw Materials Producers and Suppliers .................................................................................. 15 Egyptian Petrochemicals ........................................................................................................................... 15 Raw Material Production Versus Market Demand ............................................................................ 16 Future Petrochemical Projects ............................................................................................................... 18 Plastic Raw Material Importers .............................................................................................................. 19 Plastic Raw Material Distributors .......................................................................................................... 19 Plastic Compounders and Master-Batch .............................................................................................. 20 Plastics Converters (Manufacturers) ..................................................................................................... 20 Manufacturers’ and Recyclers’ Geographical Distribution ............................................................... 23 Plastic Recycling Industry ......................................................................................................................... 25 Equipment and Molds ............................................................................................................................... 26 Service Providers and Other Market Players ..................................................................................... 28 Egyptian Customs Authority ................................................................................................................... 28 Ministry of Trade and Industry ............................................................................................................... 28 Ministry of Scientific Research ................................................................................................................ 29 Ministry of Petroleum ............................................................................................................................... 30 Private-Sector, Industry Groups, and NGOS ..................................................................................... 30 Plastic Products’ Final Consumers and End Markets ........................................................................ 30 Original Equipment Manufacturers (OEMs) ........................................................................................ 30 Wholesale and Retail ................................................................................................................................ 31 Large Consumers, Institutions, B2B, and Government Mega-Projects ........................................ 31 Export Market ............................................................................................................................................ 32 New Markets and Opportunities ........................................................................................................... 33 The Harmonized System: Codes and Tariffs ....................................................................................... 34 Page ii USAIDS Strengthening Entrepreneurship and Enterprise Development (SEED) Plastic End of Life Cycle ........................................................................................................................... 34 European Methods of Waste Recovery ............................................................................................... 36 Plastic Value Chain Analysis ................................................................................................................................... 38 Cause and Effect Analysis......................................................................................................................... 38 Focus Group Discussions ........................................................................................................................ 40 Interventions in Progress ......................................................................................................................... 43 USAID SEED’s Proposed Technical Assistance Interventions ....................................................................... 45 Annexes ...................................................................................................................................................................... 46 Annex 1: Petrochemicals Capacity, Production, Export, and Consumption ............................... 46 Annex 2: Top Plastic Raw Materials Importers .................................................................................. 47 Annex 3: SIDPEC Authorized Plastic Raw Materials Distributors ................................................ 50 Annex 4: Sample from Compounders & Master-Batch .................................................................... 51 Annex 5: Producers of Plastic Bags & Raffia ........................................................................................ 52 Annex 6: Sample from ready-made clothes factories with annual plastic consumption ........... 55 Annex 7: Sample from Restaurant Chains in Egypt with Annual Plastic Packaging Consumption ........................................................................................................................................................................ 56 Annex 8: Sample from Pharmacies Series in Egypt with Annual Plastic Bag Consumption ..... 57 Annex 9: Sample from Large Hypermarket Series in Egypt with Annual Plastic Bag Consumption .............................................................................................................................................. 58 Annex 10: Sample from Semi-finished and Final Products Exporters ........................................... 60 Annex 11: Sample from plastic finished products importers .......................................................... 62 Annex 12: Description and Rate as of 2016 for HS Codes in Chapter 39 .................................. 63 Page iii USAIDS Strengthening Entrepreneurship and Enterprise Development (SEED) LIST OF TABLES
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