Exports and FDI are the way forward — other countries have done it right and so can we: Egypt must combine its natural value proposition with clarity and focus to build exporting economies of scale, said Yasmine Khamis, chair of Oriental Group and Yassir Zouaoui, partner at McKinsey, during the opening panel — which set the tone for the rest of the forum — of the Enterprise Exports and FDI Forum yesterday. The panel was co-moderated by Helmy Ghazi, deputy CEO of HSBC Egypt and the anchor of our most-read story ever (Five steps to build a new Egyptian economy).

The time is now: “Delays are an excuse for nothing, they are only lost opportunities”, said Khamis. The immediate need to push for exports will drive companies to innovate and build resilience in order to enter global markets, she added.

There’s a lot going in our favor: Egypt is a cost competitive market with a large, young labor force and multiple international trade agreements, Khamis and Zouaoui agreed. Geographically we act as a near shore country to large and dynamic economies including the GCC and EU as well as an access point to Africa and the MENA region. “Egypt’s value proposition is set”, said Zouaoui, “we just need to fine tune it to the investors”.

That requires focus: We must choose a few of the top sectors in which to invest and commit to them, said Zouaoui. It’s a lesson we can learn from Morocco, which made the conscious decision to focus on four sectors under a continuous national policy spearheaded by separate Industry Ministers over a period of 15-18 years, he said.

We must pick sectors with a clear competitive edge: A successful export program is tailor made to the needs of the global market by leveraging the capabilities of the local market, said Khamis. She pointed to Egypt’s textiles and tourism sectors, while Zouaoui added our renewables sector — solar and wind — as well as batteries, electric vehicles and tech-driven manufacturing, all of which already have established sustainable value chains.

Think creatively with what’s on offer: Leaning on government support in the form of export subsidies can provide a “jumpstart for a business” looking to export regardless of whether the subsidies are paid on time, said Khamis. Oriental Weavers, she said, uses subsidies to give back to the customer in the form of discounts or a rebate, increasing the company’s global competitive edge.

Other incentives Khamis called for include credit facilities with banks and tax exemptions in addition to a lobby for exporters to voice their needs.

Snowball effect: Drawing in top tier flagship investors will inevitably lead to the entrance of local investors and SMEs that enrich the value chain, said Zouaoui.

Investors are secured through predictability, he added, meaning that we must draw up a clear roadmap to be implemented by “transaction focused” people, signaling to the global market that Egypt is open and committed to business.

Zouaoui also noted the importance of having an investor promotions authority to highlight the value proposition that Egypt has, noting examples abroad including India and Vietnam.

We could not have made the Enterprise Exports and FDI Forum without the support of…

Tags: