Prime Minister sketches future vision

AmCham Egypt held its Annual General Meeting on May 30 at the Four Seasons Nile Plaza with guest speaker Prime Minister Ahmed Nazif. In his remarks, Nazif laid out the achievements of recent reforms, while addressing the ways that the government plans to solve the economic, social and political challenges ahead.

The event began with recognition of the achievements of outgoing AmCham Egypt president Taher Helmy. US ambassador Francis Ricciardone presented a certificate on behalf of the US government in appreciation of Helmy’s efforts to create opportunities for Egyptian-US trade during his four-year tenure. He also read a letter by US secretary of commerce Carlos Gutierrez thanking Helmy and the rest of the AmCham board, as well as its members, for their outstanding efforts in this regard.

Nazif, upon taking the podium, addressed nearly 800 AmCham members and distinguished guests in attendance, outlining his vision of where Egypt stands today, and where it is going. “We’re facing a lot of challenges as we meet a world that is changing by the day, if not by the hour. Some of these challenges are of a global nature and others are specific to our region,” he said.

In the Middle East, regional conflicts have proven difficult to resolve, he said, because new and more complicated issues keep arising, thereby adding to existing conflicts. In addition to political consequences, these crises have an economic dimension, because they undermine economic growth. “We see political aspects of those relations taking over socioeconomic aspects. We see conflicts that are deterring growth, in fact inhibiting growth, sometimes destroying growth. It’s a sad story but a story that presents us with a challenge, and to me a challenge is always an opportunity for change,” he said.

Turning to the subject of globalization, Nazif said every country must compete in a world where barriers to trade and investment are coming down on the basis of quality, effectiveness and efficiency. Likewise, every country must also strike the right balance between preserving the environment for future generations and achieving economic growth.

In light of these challenges, the prime minister contemplated some possible solutions. On the political front, he said Egypt would play an active role trying to solve conflicts in the region, despite their ever-increasing numbers. “Egypt has to play that leading role in the Middle East and in Africa. We continue to carry and cherish this responsibility, but the problem today is that we’re seeing more and more conflicts rather than solving those that existed before. We still believe that the heart of the problem is the Palestinian issue.”

As for domestic matters, Nazif stressed the government’s commitment to fostering more political involvement from all stakeholders. “Democracy is deepening in our country; freedom of expression is certainly greater than it has ever been in our country. We hope that the new [constitutional] amendments will allow more participation by opposition parties, by society at large and by women. We hope that they will allow us to end the state of emergency that has lingered with us. We hope that it will allow more Egyptians to engage in politics.”

Economically, he noted that Egypt continues to do well. Economic growth reached 7.2 percent during the third quarter of FY 2006-07, which he considered evidence that the economy is no longer stagnant.

As a result, Egypt has won over many foreign investors, Nazif said. “When we took office [foreign direct investment] was $2 billion, mostly from the oil and gas sector. The whole of last year it was $6 billion, and the Central Bank just announced that for the three quarters of this [fiscal] year FDI is at $9.4 billion, more than 50 percent over the whole of last year. That’s the kind of confidence that we’ve gained from the international community.”

Nazif explained that ambitious goals are being set in order to continue this positive trend. One such goal is to meet Organization for Economic Cooperation & Development (OECD) targets for sustainable economic growth by 2020, which he believes is within reach if Egypt continues to build on the growth of the last two years. “I’ve always been a believer in this country. We have what it takes; we have the resources, we have the human capital, we have the opportunities and we have a business environment today that is catalytic to growth.”

Despite these gains, Nazif cautioned that the true measure of success will be if benefits reach all segments of society. “We need to make sure that lower income groups share in that growth, that the trickle-down effect is more of a wash-down effect – and this government will continue to do so. We will make sure that as we grow more, and as the economy improves, that the social benefit side will also improve.”

To that end, Nazif said the government was working to implement education and healthcare reform, and improve infrastructure in terms of energy, potable water, sewage treatment and transportation.

The US has helped boost Egyptian growth, Nazif pointed out. However, he stressed that the Egyptian-American relationship is constantly evolving. “We think that the time has come for us to work more as partners. We share the values and the objectives but sometimes we don’t share the methodologies and mechanisms to achieve that. I hope that we can, and you will help us align ourselves better to translate our values into achieving our common objectives.”

Speaking directly to the Egyptian business community, Nazif urged them to do their part to promote competitiveness, innovation, social responsibility, partnership and human resource development. “In this world you will have to engage. You’ll have to do your part if you are going to compete. We have what it takes and what it takes needs your support. You need to make sure that there are Egyptian solutions that we can export to the world,” he said.

In closing, the prime minister stated: “We will continue to work to make Egypt open for business; to make Egypt a good place to make business because this is the only way we know that will make Egypt a good place for every Egyptian.”

The prime minister then proceeded to answer questions posed by audience members on various topics, including energy prices, inflation, public-private partnerships, real estate prices, the mortgage law, skills development for Egyptian youth, social solidarity and public transparency.

Letter from US secretary of commerce Carlos Gutierrez to outgoing AmCham Egypt president Taher Helmy, the AmCham board and its members, “Let me add my own warm congratulations and commendation to you, Taher, for four years of exemplary leadership of one of the premier private institutions in Egypt and one of the most effective chambers of commerce abroad. Your record of accomplishment, dedication and energy will inspire your successor and all of us as the Chamber enters its second quarter-century. I wish you every success in your future endeavors and let me also take this opportunity to commend the dedication and high accomplishment of the outgoing members of the AmCham board. I know each of you will continue to serve this great organization and its mission to promote American-Egyptian trade, investment and cooperation to our mutual benefit. I look forward to meeting with each of you whether in the United States or in Egypt. Please accept my deepest appreciation for your service and my warmest wishes for your continued success.”