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| ROUND UP: The month at a glance |
Bread subsidises maintained
Minister of Supply Hassan Khedr announced in April that a fund of
£E 250 million had been set up to buy wheat from local producers,
in a move to maintain subsidies on essential goods – particularly
baladi bread – until the end of the fiscal year in June.
TE to delay third network
As of press time, mobile operators MobiNil and Vodafone were reportedly
on the verge of a deal with Telecom Egypt (TE) to extend their period
of exclusivity in the national GSM market. Under the deal, the two
mobile giants would each pay TE £E 1 billion if the state-run
operator agreed not to launch its long-promised third mobile network
for another five years.
Cairo bags $96 million
The US government granted Egypt $96 million in April to support
policy reforms in trade, health and agriculture.
energy pact mulled
Egypt and Libya are discussing a potential bilateral oil and gas
project that would allow Egypt – after 20 years – to export
natural gas to Libya, while importing crude oil for its own refineries.
Tourism halved
Minister of Tourism Mamdouh El Beltagui said that March had seen
a 50-percent drop in tourist numbers over the same month last year
as a direct result of the war in Iraq.
Operation tax collection
The General Tax Authority has introduced a plan to pursue tax evaders
to help recoup war-incurred tax losses. The opposition press reported
that the tax deficit is expected to range between £E 6 billion
and £E 10 billion by the end of the fiscal year.
Bidding for snacks
Egypt’s Rational International Enterprises offered in late
March to acquire 100 percent of International Food Company, the
local distributor of Hostess-brand products. On April 4, Greek Edita,
too, made an offer for the company.
Russian grain barter
In April, the Ministry of Supply announced that Cairo is planning
to sign a five-year barter deal with Russia in June to import up
to 1.5 million tons of Russian wheat per year, in exchange for agricultural
goods and money.
Vivendi sells phone stake
French telecoms giant Vivendi Universal sold its 7-percent stake
in Vodafone Egypt (formerly Click GSM) in April to British mobile
operator Vodafone for $48 million.
Airplanes on order
National carrier EgyptAir has ordered seven more airplanes from
European aircraft manufacturer Airbus, scheduled to arrive in June
2004. EgyptAir is one of Airbus’ largest customers in the Middle
East.
Exporting down under
Egypt’s exports to Australia increased 55 percent from 2001,
reaching $16 million last year. Imports from Australia, meanwhile,
which mainly consist of commodities like wheat, dropped 10 percent
over the same period.
Tax filing down
The Tax Bureau announced in early April that only 19 percent of
those eligible to submit income tax statements had filed tax forms
for 2003. Tax bureau sources attributed the low numbers to the ongoing
recession and the recent war in Iraq.
Costs of war
President of the Chambers of Commerce Union Khaled Ismail estimated
in mid-April that the war in Iraq would cost Egypt $10 billion in
a month’s time. If post-war tension continues, he added, the
figure could hit $20 billion by September.
Gov’t lends to villages
A five-year government project will provide microenterprise loans
to citizens living in rural areas. With the aim of fighting poverty,
the project will begin by allocating £E 1 million in loans
to each of 55 villages. The government will finance the project
by borrowing from local and international sources.
New port rules
In a bid to promote exports, the Ministry of Transport issued a
decree in April reducing loading charges at Egyptian ports by 50
percent. Businesspeople had reacted angrily to an earlier decision
to set minimum limits to loading and unloading fees.
Ministry aids cotton
In an effort to boost next season’s cotton exports, Minister
of Agriculture Youssef Wali announced in late March that cotton
farmers would receive an allowance of £E 176 per feddan (4.2
square meters) to help them pay for land servicing.
British unis win contract
A consortium led by two British universities – Northumbria
and Newcastle – was awarded a $14.14 billion contract in April
to improve the quality of teaching in Egypt. The European Union-funded
project is central to Egypt’s Education Enhancement Program,
and aims to provide 1,500 teachers with training or work placements.
Fertilizer plants funded
The government and private sector will jointly finance a project
to build five new fertilizer production facilities in the next two
years, Prime Minister Atef Ebeid announced in April.
Electricity subsidies intact
Minister of Electricity Hassan Younis announced in April that subsidies
on electricity consumption for low-income households would be maintained
for the coming year.
Gov’t to sell oil stakes
The Ministry of Public Enterprise is preparing to sell government
shares in three oil companies – Alexandria for Petroleum Products,
Alexandria for Mineral Oils and Gas Misr.
Budget plan approved
At a ministerial meeting on April 8, President Hosni Mubarak approved
the 2003/04 budget. Mubarak reportedly directed ministers to give
priority to subsidizing essential goods, paying back loans, introducing
a 10-percent raise for government employees and refraining from
imposing new taxes.
Egypt-India trade
Exports to India rose 150 percent in 2002, according to a report
presented to Minister of Foreign Trade Youssef Boutros-Ghali by
the Egyptian-Indian working group in mid-April. The group was established
to plan for an Egypt-India trade agreement. Egyptian members said
a trade agreement would boost exports and provide an additional
source of grain imports.
Missiles upgraded
Arizona-based Raytheon Systems received a $14.9 million contract
from the US Navy to upgrade Egyptian missiles. Under the Foreign
Military Sales Program, Raytheon will provide the Egyptian government
with materials, training and technical services.
Domestic travel slumps
In keeping with falling air travel around the world, EgyptAir reported
a 60- to 80-percent drop in local flights. The national carrier
estimated losses of £E 400 million if the war in Iraq lasted
more than a month.
Stone exports to China
An office has been set up in Beijing, China to promote Egyptian
granite and marble exports to the Chinese market. Yasser Rashid
of the Egyptian Industrial Union said China is one of the largest
markets for the two ores.
U.S./U.K. drugs boycotted
In opposition to the war in Iraq, some pharmacists have formed committees
to discuss boycotting US and British pharmaceuticals, Mahmoud Abdel
Maksood, the secretary-general of the Pharmacists Union, said in
March.
Free zone exports up
Chairman of the General Authority for Investment & Free Zones
Mohamed Al-Ghamrawy said in April that $1.2 billion worth of merchandise
had been exported via free trade zones in 2002, representing 25
percent of Egypt’s total merchandise exports.
Vicat wins in Sinai
Groupe Vicat of France won out against the Egyptian Cement Company,
a subsidiary of Orascom Construction Industries, for a stake in
Sinai Cement in April. Vicat’s bid proposed a capital increase
of £E 100 million, raising Sinai’s capital to £E
350 million.
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