2019 NOT FOR SALE FEBRUARY www.amcham.org.eg/bmonthly EGYPT’S GREEN BONDS GREEN EGYPT’S SECURING INVESTMENTS IN AFRICA MINISTER OF CIT SPEAKS ▲ ▲ ▲ ALSO INSIDE ▲ ▲ ▲ COUNTING The rise The and regulation of consumer lending ON CREDIT BUSINESS MONTHLY COUNTING ON CREDIT FEBRUARY 2019 Cover Feb 2019.qxp_Cover.qxd 2/4/19 2:14 PM Page 1 THE ‘WORLD IS YOUR OYSTER’ THIS VALENTINE’S ... SO TRANSPORT A TABLE FOR TWO ... YOUR SWEETHEART TO DIVINELY ROMANTIC SETTINGS FOR A NIGHT A MEMORY FOREVER OF INTERNATIONAL TEMPTATIONS. Saraya Gallery, is stylishly French with the cuisine to match ... ‘Ooh la la!’. Whisper ‘il mio amore’ to your love amid the Italian ambience of Ristorante Tuscany ... take a front row seat for the exotic Japanese teppanyaki show at Torii. Promenade Café awaits in an outdoor setting - just perfect, while The Bakery welcomes you with delectable delights. For the young at heart ... what’s not to love. 16 SARAY EL GEZIRA ST., PO BOX 33 ZAMALEK, CAIRO 11211, EGYPT. 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Regional Focus 32 Egypt�s First Green Bonds Thinking outside the box Investor Focus 16 New Insurance Fund Boosting appetite for investment in africa The Chamber 42 Events 49 Exclusive Offers 52 Media Lite An irreverent glance at the press © Copyright Business Monthly 2019. 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. 4• Business Monthly - FEBRUARY 2019 Editorial.qxp_Editorial.qxd 2/4/19 2:30 PM Page 1 Editor’s Note Director of Publications & Research Khaled F. Sewelam Editor-in-Chief Nadine Abou el Atta Contributing Editor Tamer Hafez Kate Durham Pause Consulting Editors ne of my favorite things about closing an issue is scanning through pho- Bertil G. Peterson tos with our designer to choose what best compliments our message. This month some of the photos were of a new family buying furniture Writers for their first home, a decision that impacts them for many years, and Ola Nour El Din Adam Sakaria somewhere in the archives of Business Monthly we have paused this moment forever. OOne of the many moments we captured in this issue are of people sidestepping ris- Contributing Writers ing prices and buying their needs on installments. This has been a well-rising trend Menna Farouk that has fueled the birth and perpetual growth of non-bank lending companies. Mahinaz el Baz These companies are not only competing with regular banks but they are not mon- itored by the government. In this issue, we look into their potential impact on Senior Art Director Nessim N. Hanna banks, consumerism, and Egypt�s economic-welfare as a whole. Another rising trend worth investigating is the bus-hailing service. With the first Senior Graphic Designer player launching just over a year ago and global players following suit last December, Emy Emile the sector is still in its infancy. On the government front, the Ministry of Communications and Information Graphic Designer Verina Maher Technology has launched several initiatives focused on the digital transformation of government services. To better understand how these projects translate to the aver- Advertising & Business Development age Egyptian�s quality of life, Business Monthly sat for a one-on-one interview with Director Minister Amr Talaat. Amany Kassem Moreover, the state is working on launching an insurance fund to protect Egyptian Advertising Coordinator investments in Africa. This month we delve into its potential influence and unad- Lamia Seleit dressed challenges. Addressing budget issues, Egypt is examining the possibility of issuing its first Circulation Coordinator green bond. While still in its early phases, experts are theorizing the different means Veronica Gendy of issuance and their perspective results. Photographers Finally, we end the issue with one of the most controversial industries in Egypt, Karim el Sharnouby petrochemicals. Despite ambitious expansion plans, the industry is still suffering Said Abdelmessih from a significant shortage in feedstock, rendering most plant production levels well below capacity. Production Supervisor On behalf of everyone at Business Monthly, we hope you enjoy this issue. Hany Elias Market Watch Analyst ADINE BOU EL TTA N A A Amr Hussein Elalfy EDITOR-IN-CHIEF [email protected] Chamber News Contacts Nada Abdalla, Azza Sherif, Susanne Winkler U.S. address: 1615 H Street, NW • Washington, D.C. 20062 Please forward your comments or suggestions to the Egypt editorial office: Business Monthly 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 @BusinessMonthlyEg @BusinessMonthly @BusinessMonthly 6• Business Monthly - FEBRUARY 2019 LASTING MEMORIES THIS AT GRAND NILE TOWER Live entertainment, sparkling stars, and breathtaking views ... The ultimate ingredients to a romance filled dining experience at the Revolving Restaurant on the 41st floor or aboard Marquise, Grand Nile Tower’s private yacht. Compliment the magical night with a one night stay in a luxurious room overlooking the spectacular Nile. WE GUARANTEE YOU A VALENTINE’S TO REMEMBER! Corniche El Nile, Garden City, Cairo, Egypt Telephone: +202 2365 1234 Fax +202 2362 1927 www.grandniletower.com [email protected] Viewpoint.qxp_Viewpoint.qxd 2/4/19 2:36 PM Page 1 Viewpoint Never a Boring Moment he visit of U.S. Secretary of State Pompeo was the highlight of January�s events. The Secretary�s speech was broadcasted from the AUC campus in the attendance of a select group representing Egyptian nationals, amongst which were the board of AmCham Egypt. As much as the speech was self-serving to the Trump administration there were still several subtle messages directed to Egypt and the TMiddle East. Commitment to the region and ruling regimes was emphasized, with no mention of politically sensitive issues regarding the Khashoggi case, or human rights. In addition, Pompeo praised Egypt as an example of religious freedom and religious tolerance, unlike most countries in the Middle East. In summary, it gave more comfort regarding the U.S. policy toward Egypt, something to build on in the near future. Another important meeting that I had the privilege to attend was between President Sisi and the 16 foreign fund managers attending the CI Capital conference. Additionally present were the Prime Minister, ministers of investment, planning, health, and industry and trade. The message sent was clear, Egypt will continue the reform program after the end of the IMF agreement. It is a homemade program that will move on, further privatization is a must not a luxury, and involvement of the private sector in running publicly held companies is a necessity. It is time for full financial and operational accountability as the current model is not working. The interest rate is a function of inflation and it is the job of the Central Bank of Egypt. Some recent highlights noted include Egypt�s sovereign wealth fund of EGP 200 billion is set to be inaugurated, with a governance structure designed by BCG, McKenzie, as well as PwC. Furthermore and apart from an ongoing focus on oil and gas, renewables, and infrastructure, the coming period will witness a heightened focus on industry and logistics. The government will also be inaugurating by June turnkey modular industrial clusters for private investors, along with logistical hubs, that will also be commissioned this year. As for infrastructure, more than 7,700 kilometers of new roads and over 660 new bridges are being completed. To date, total investments in infrastructure exceeded EGP 2 trillion, EGP 500 billion of which went to electrical power generation. Moreover, the government availed 250,000 furnished three-bedroom apartments for the neediest strata of the society. In short, the meeting was another reassuring statement whereby the President clearly stated that the economy is to be led by the private sector. 2019 is a challenging yet interesting year that will witness multiple events, from heading the African Union, to hosting the African Cup in Egypt, to successfully ending the IMF program and the pursuit of even more sustainable reforms. There is much more yet to come, never a boring moment here in Egypt. TAREK TAWFIK President, AmCham Egypt 8• Business Monthly - FEBRUARY 2019 InBrief new.qxp_InBrief.qxd 2/4/19 2:37 PM Page 2 THE NEWSROOM IN BRIEF Chemical Exports Overview Chemicals and fertilizer exports during Egypt’s Chemicals and Fertilizer Exports – 2018 the first 11 months of 2018 increased by 23 percent compared to the same timeframe in 2017, topping $4.9 billion. While yet to be officially announced, Khaled Aboul Makarem, head of the Chemicals and Fertilizer Industries Export Council, expects the 12-month growth rate to top 25 percent in comparison to 2017, making it the fastest growing exporting sector.