{"id":550332,"date":"2022-10-24T03:54:17","date_gmt":"2022-10-24T03:54:17","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/24\/this-morning-its-day-2-of-the-egypt-economic-conference\/"},"modified":"2022-10-24T03:54:17","modified_gmt":"2022-10-24T03:54:17","slug":"this-morning-its-day-2-of-the-egypt-economic-conference","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/24\/this-morning-its-day-2-of-the-egypt-economic-conference\/","title":{"rendered":"THIS MORNING: It\u2019s Day 2 of the Egypt Economic Conference"},"content":{"rendered":"

Good morning, friends. <\/strong>As those of you who tuned in yesterday know, we expect this week\u2019s newsflow to be dominated by three major economic gatherings, including the Madbouly government\u2019s Egypt Economic Conference (EEC) 2022; a joint economic conference with the UAE; and the ongoing gas exporting countries forum.<\/p>\n

Day one of the EEC was yesterday, and cabinet members set the table by reviewing the <\/strong>government\u2019s achievements in recent years<\/strong>, including a much-needed program to build infrastructure (roads, bridges, logistics, power generation, natural gas \u2014 A+, we think); its handling of global crises including covid-19 (an A, in our view); and the fallout from Russia\u2019s war in Ukraine (class is still in session, but they squeaked out a C on the midterm).<\/p>\n

Cabinet members speaking at the opening sessions <\/strong>highlighted policy priorities including curbing population growth (smart) and building an industrial base (absolutely necessary). There was comparatively little on how to drive export growth and \u2014 in the words of one of the smartest people we know, who was in the audience \u2014 \u201creally little sense of needing new policy ideas, of needing to do something different or to turn a new page.\u201d<\/p>\n

We\u2019re more convinced than ever that our <\/strong>five-point recipe for building a new Egyptian<\/a><\/strong>economy based on exports and FDI<\/a><\/strong> holds water. <\/strong>The feedback from so many of you in the community has been both rich and intense (we\u2019ll be talking more about that in the weeks and months to come)\u2026<\/p>\n

<\/a> \u2026and Mahmoud Mohieldin was on-point yesterday<\/strong>, saying that while we <\/strong>have an import <\/strong>problem, we have an export crisis. <\/strong>Dr. Mahmoud is brilliant, and he also speaks from experience, having run a focused investment promotion campaign when he was in cabinet. The solution to our economic challenges, he suggested (watch, runtime: 25:59<\/a><\/strong>), is in growing our export base. \u201cIs our problem rising imports \u2014 or low exports? We have an import problem, but an export crisis,\u201d Dr. Mahmoud said, suggesting that our ratio of imports to GDP is low by global standards \u2014 and that most of what we import are goods necessary to support manufacturing, agriculture and services.<\/p>\n

\u201cThe real problem is not high imports, but the low contribution of exports to GDP. <\/strong>Egypt\u2019s exports per capita are lower than almost any other country \u2014 we must take steps to grow exports,\u201d Dr. Mahmoud said.<\/p>\n

Part of the solution is capturing a once-in-a-lifetime chance to integrate with global <\/strong>supply chains<\/strong> \u2014 to make ourselves permanently part of the energy, manufacturing and services base serving Europe, the GCC and Africa.<\/p>\n

HERE\u2019S THE PROBLEM-<\/strong> We\u2019re taking careful steps in the right direction, but everyone <\/strong>else in our neighborhood is running<\/strong>. <\/strong>As Enterprise Climate reports this morning, Saudi Arabia wants to become a global supply chain hub<\/a> with a special focus on renewable energy. It is also looking to supply India with renewable energy<\/a>. And Morocco \u2014 which already ate our first-mover advantage in automotive assembly and has turned itself into an aerospace hub \u2014 is now hammering its position as the top supplier of renewable energy to Europe<\/a>.<\/p>\n

Friends, we need to get moving, and we need to be focused. <\/strong>It\u2019s time Egypt launched a private-sector-back investment promotion agency that can speak the language of CEOs around the world \u2014 and pitch them on how they _specifically_ can capitalize on our natural position as a global export hub.<\/p>\n

TODAY IS DAY TWO of EEC 2022. <\/strong>Attendees will discuss:<\/p>\n