Strengthening Egyptian-Libyan trade relations: Last week, Benghazi hosted a delegation from the Federation of Egyptian Industries (FEI) and tens of Egyptian companies — including the federation’s Mohamed El Bahy — who were in town for the Libyan-Egyptian Industrial and Trade Forum. EnterpriseAM spoke to El Bahy to find out what went down during the forum and learn more about the future of Egyptian-Libyan trade.

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About the forum: Hosted by the Benghazi Chamber of Commerce, Industry and Agriculture, Emaar Libya Holding, and the Engineering Export Council of Egypt, the forum “was a success,” according to El Bahy. It brought together over 43 local companies and representatives from a large number of Libyan entities.

The two sides agreed to: Set up a comprehensive industrial complex leveraging Egyptian raw materials to serve as a trade corridor to Algeria, Tunisia, and other African markets; Set up permanent “Made in Egypt” exhibitions in Tripoli and Benghazi; and to look into potential Egyptian investments in Libya’s tourism sector — Libya is setting up a tourism project on its coastline.

An attractive market for investments: El Bahy pointed out that Libya offers an investment-friendly environment, on top of its extremely cheap energy prices, making it an attractive investment destination for energy-intensive industries like iron, cement, and ceramics.

The forum saw the two sides ink agreements across multiple sectors, most notably the pharma sector, El Bahy said, without providing more details. Fifty of Egypt’s pharma producers are qualified to export drugs to the Libyan market, he said, adding that the Libyan market is interested in importing Egyptian meds in efforts to clamp down on the informal meds market. A specialized Libyan firm will handle the local distribution and marketing of these drugs.

Libyan-Egyptian agreements in focus: El Bahy highlighted a series of key agreements that were signed during the visit:

  • Two industrial complexes: Omar Abdel Aziz, Head of the FEI’s Foundries Division is setting up an industrial complex in Tripoli with Wazan for Steel and Metal Company, as well as another complex in Benghazi.
  • An industrial ice factory in Misrata: Chamber of Engineering Industries’ Mostafa Al Ashry inked agreements to set up an industrial ice factory in Misrata and to supply air conditioners and equipment.
  • Egyptian software developer Cloud Soft signed three agreements focused on IT systems and offering training services in business training centers in Tripoli and Benghazi, and training services to students at Tripoli’s Alassema University.
  • A supply chain agreement: The Chamber of Woodworking and Furniture Industries inked an agreement to supply major factories in Libya.
  • Local steel maker Kandil Steel inked an agreement with a Benghazi-based company for the pricing of electrical panels and is undergoing discussions over a lighting poles and metal scaffolding project. A number of Libyan companies agreed to visit Kandil Steel’s factory next month.

It’s all about the expertise: El Bahy told us that the Libyan side has no shortage of funds, but what it needs is Egyptian expertise.The two sides inked an agreement to mitigate payment risks, including fund transfers for exports.

Investment protection: Federation of Egyptian Industries’ real estate division head Osama Saad El Din told EnterpriseAM that the two sides agreed to operate in Libya using resources from the Reconstruction Fund, reducing risks for Egyptian companies and eliminating the need for local bank guarantees. There is also a proposal to issue Egyptian workers ins. cards to ensure their protection during their time in Libya.

To sweeten the pot: Officials are looking into inking an agreement to protect investments between the two countries just like that Agreement on Promotion and Mutual Protection of Investments inked between Egypt and Saudi Arabia earlier this month, Saad El Din said.

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