cover - amcham.org.eg · heal thyself 8 i business monthly – february 2014 editor’s note...

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EGYPT GOES DIGITAL

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CAIRO’S INDIE FILM SCENE

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AMCHAM, EGYPT-U.S. BUSINESS COUNCILJOINT MISSION TO WASHINGTON

ALSO INSIDE:

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Egypt's import economy

6 I Business Monthly – March 2014

Cairo is awash with cheap goods fromAsia that are either imported throughproper channels or smuggled in. Butquestions have been raised latelyabout whether these products are safeand reliable, while Egyptian factoriesstruggle to stay afloat.

Cover Design: Nessim N. Hanna

© Copyright Business Monthly 2013. All rights reserved. No part of this magazine may be reproduced without the prior written consent of the editor. The opinions expressed in Business Monthly do not necessarily reflect the views of the American Chamber of Commerce in Egypt.

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InsideEditor’s Note

Viewpoint

The NewsroomIn BriefThe news in a nutshell

Region NotesNews from around the region

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In DepthSignals fuzzy as Egypt counts down to digitalThe end of analog broadcasting

Egypt’s independent movie industry hits its strideA growing audience for art housefilms

Market WatchStock Analysis Heat rises

Capital MarketsA glance at stocks & bonds

Money & BankingForex and deposits

Key IndicatorsThe economy at a glance

Egypt-U.S. TradeImports and exports

Corporate ClinicTechnologyConnected

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The Chamber

AmCham, Egypt-U.S.Business Counciljoint mission

Events

Member News

Announcements

Media LiteAn irreverent glanceat the press


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FoodWhat's cooking?

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Aresident in obstetrics and gynecology at Kasr el Aini, Egypt’s oldest and largesthospital, told me he became a doctor in order to serve his country. Now he justwants to leave. Australia, Dubai—he’ll go anywhere he can earn a living wage.In recent weeks, doctors like him employed by Egypt’s public hospitals and

clinics, which serve the vast majority of the population, have stepped up strikes demandingbetter pay and increased health care spending. Egyptian doctors are infamously underpaid,with fresh medical graduates earning as little as LE 200 a month. Many are forced to moon-light to the point of exhaustion or take bribes from patients in order to make ends meet.After seven years of medical school and eight as a resident, my doctor friend now earnsLE 2,000 a month. He says: “Garbage collectors make more.”

Last month, Egypt made international headlines when Army officials claimed to haveinvented several machines that can cure, among other things, AIDS and hepatitis C. Oneof the devices, which a reporter said resembled “an antenna affixed to the handle of ablender,” claimed to detect the viruses that cause both diseases, while another reportedlyacted like a dialysis unit to “purify” the blood, curing 100 percent of AIDS cases and 95percent of hepatitis C cases. The news that the Egyptian military had hit upon “miraculous”cures to not just one but two deadly illnesses the global scientific community has beenworking to cure for decades was met with a mix of outrage and humor. Essam Heggy, ascientific advisor to interim President Adly Mansour, called the claims a “scandal” thatcould damage Egypt’s reputation. For comedian Bassem Youssef—who is also a cardiacsurgeon—the news provided plenty of satirical fodder.

Still, these diseases are no laughing matter. Egypt has the world’s highest prevalence ofhepatitis C, which can lead to cirrhosis and liver cancer, with an estimated 20 percent ofEgyptian blood donors testing positive, according to the World Health Organization. WhileHIV prevalence rate remains low—under 1 percent—those who are infected often face somuch discrimination from health workers that they opt to forego care. A staggering 31 per-cent of children under five suffer from stunted growth from malnutrition. Concerns havebeen raised about the Egyptian health sector’s ability to tackle these afflictions and otherchallenges likely to grow along with the population, from drug addiction to swine flu.

Health care spending in Egypt represents about 5 percent of GDP—on par with otheremerging markets but much lower than the Western world. Many have pointed out thatredistributing resources from the top-heavy Ministry of Health, where the bloated salariesof senior administrators eat up valuable pounds, would mean more money for patient care.Even private donations to hospitals often come in the form of new equipment or build-ings; little goes to providing better training and pay for physicians and nurses, points outthe Kasr al Aini obstetrician. In the meantime, Egyptian doctors continue to decamp forgreener pastures. “You can’t serve your country when you’re hungry,” he says.

HEALTHYSELF

8 I Business Monthly – February 2014

Editor’s Note

Director of Publications & ResearchKhaled F. Sewelam

Editor-in-ChiefRachel Scheier

Contributing EditorTamer Hafez

Staff WriterMat Wolf

Art DirectorNessim N. Hanna

Contributing WritersIsabel EstermanBrendan Meighan

PhotographersSoha El GabiSaid Abdelmessih

Production SupervisorHany Elias

Advertising DirectorAmany Kassem

Advertising & Circulation AssistantRaghda Salama

Market Watch AnalystAmr Hussein Elalfy

Chamber News ContactsNada Abdalla, Nihal Alaa, Shorouk Genena, Salma Shaaban

U.S. address: 1615 H Street, NW • Washington, D.C. 20062Please forward your comments or suggestions to the Egypt editorial office:

Business Monthly American Chamber of Commerce in Egypt33 Soliman Abaza Street, Dokki 12311 • Cairo • EgyptTel: (20-2) 3338-1050 • Fax: (20-2) 3338-0850E-mail: [email protected]/bmonthly

CTP and printing: Sahara Printing Company, SAE – Nasr City Free Zone

RACHEL SCHEIER

Someone is hitting the brakes and trying to stopthe growth of this country. There are frequentdisruptive criminal acts, new to Egypt and hardto understand. Is it possible to accept the factthat certain nationals are actively seeking todestroy their own nation? Is it reasonable to

believe that anyone will want to build on rubble?There are no good answers to these questions. I am not

inclined to trust conspiracy theories; however, the facts speakfor themselves. Violence is alive and well, and all proponentsof these disruptive acts have to be condemned and brought tojustice.

Giving in to blackmail and arm twisting is a catastrophicrecipe for failure. We in the business community have learnedthe hard way that it does not pay—if you give in today, thereis no reason why you won’t tomorrow, until the situationbecomes a lawless jungle based on brutality and fear.

In a country in which the majority of the population isunable to read and passively bombarded by messages from themedia, there is an enormous responsibility borne by televisionnews anchors and reporters. While it’s normal for news to besensational, it would make a huge difference if stories aboutexplosions, death and crimes were followed by a touch of real-ity and optimism, in order to create a climate conducive tohope and success as opposed to fear and desperation. Gettingused to a constant flow of bad news is dangerous.

A climate of fear leads to a general state of paranoia. Hasty,uncalculated reactions are disproportionate and often causemore harm than good. The recent sentences and arrests aredetrimental to the image, credibility and business climate ofthe country.

Last month, the board of AmCham Egypt and the Egypt-U.S. Business Council together visited Washington, D.C.Discussions held with representatives of think tanks, Congressand administration officials all confirmed that the currentaggressive, repressive stand, though often understandable, isleaving a bitter taste and working against the progressive envi-ronment we are trying so hard to build.

Egypt freed itself from the “listen and obey” rhetoric ofthe past, and it must go back to trusting others outside theclosed power circle. The last thing we need is give theimpression that a new group is simply following in thefootsteps of the old one.

While there is a broad pragmatic recognition of Egypt'sstrategic location in the turbulent Middle East, there isalso a realization of our production potential and buyingpower. Hence the urgent need to get back to work to avoidthe danger of being sucked in by turbulence and driftingbackwards.

Mounir Abdel Nour, now Egypt’s minister of industry, for-eign trade and investment, gave a hard hitting and well-received speech at the U.S. Chamber of Commerce. He high-lighted the success stories of American firms in Egypt andinvestment opportunities as well as challenges. We shouldwork to exploit the momentum created by the visit and hisspeech; it would be a shame to let serious efforts go down thedrain.

Hard work, fairness and strategy can vanquish hate andfear. All of us are given the same number of hours eachday; unfortunately, some of us use them productivelywhile others are in danger of wasting them.

Viewpoint


ANIS A. ACLIMANDOSPresident, AmCham Egypt

WHO HATESEGYPT?


In Brief

Cabinet quitsPrime Minister Hazem el Beblawi madea surprise announcement Feb. 24 thatthe entire Egyptian cabinet was submit-ting its resignation to interim PresidentAdly Mansour. The new prime ministeris former housing minister IbrahimMehleb, once a member of HosniMubarak’s National Democratic Partyand CEO of state-owned ArabContractors. A clear reason for theshake-up was not provided, but in aspeech broadcast on state television,Mehleb said the new government wouldfocus on security, fighting terrorism andrebuilding the economy. A new cabinetwas sworn in March 1 in which 20 min-isters, two-thirds of the old cabinet,stayed on in their old posts, includingdefense minister Abdul-Fattah el-Sisi,quashing speculation that el-Sisi was onthe verge of announcing a widely-expected bid for the presidency. El-Sisi,who also heads the Supreme Council ofthe Armed Forces, must vacate his min-isterial post in order to run. The reshuf-fle also consolidated 12 ministries intosix. Many of the outgoing cabinet’s mostprominent names were not included inthe new lineup, including higher educa-tion minister Hossam Eissa, manpowerminister Kamal Abu-Eita and financeminister Ahmed Galal.

New stimulus unveiledIn a Feb. 10 statement, then-Ministerof Finance Ahmed Galal announceddetails of a second stimulus package,projected to inject LE 33.9 billion intothe local economy. According toGalal, the program would be fundedby cash and in-kind grants donated by

the United Arab Emirates during thesecond half of last year. The bulk ofthe package, LE 21.7 billion, was ear-marked for development projects,including LE 2 billion for redevelop-ment of the Suez Canal zone. AroundLE 12 billion was set aside for socialspending, including raising the mini-mum wage, teacher training, socialsecurity and pensions. An additionalLE 1 billion was dedicated to revital-izing ailing state institutions like theFederation of Radio and Television.On the same day, the cabinetannounced that it had been able tospend only around 30 percent of theLE 29.6 billion set aside for its firststimulus program, citing “tensions”following the June 30 overthrow ofPresident Mohamed Morsi.

No end in sight for power woesWith electricity blackouts becoming aregular occurrence even in the wintermonths when demand is traditionally atits lightest, Egypt’s energy shortage isbeing felt by households and businessesalike. Early last month, an official fromthe Ministry of Petroleum told Reutersthat in the coming fiscal year, domesticgas production is projected to reach 5.4billion cubic feet per day, while dailyconsumption should rise to 5.57 billioncubic feet, leaving a critical shortfall of170 million cubic feet per day. For thecurrent fiscal year, production stillexceeds demand at 5.31 billion cubicfeet per day compared to consumption of4.95. However, since a percentage of

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local production is designated for export,Egyptian consumers have already felt thepinch; cement producers report that stateholding company EGAS has cut their gassupplies in half, leading to a decline inproduction. In related news, plans toimport liquefied natural gas via a floatingregasification terminal were put on holdlast month when Norwegian firm Hoegh,which was recently awarded a contract tobuild the terminal, pulled out of the deal.According to Reuters, the company citedconcerns about a lack of financial andcommercial guarantees from the govern-ment. Negotiations are reportedly stillongoing, but it is unlikely that a terminalcan be put in place in time for Egypt’speak energy season, which usually beginsin April.

Gov’t inks new petroleum dealsThree new oil and gas exploration agree-ments signed last month should bring$265 million of investment to Egypt’spetroleum sector and help increase much-needed domestic supplies should theexploration yield fruit. Three companies,UAE-based Dana Gas, Italian firm Edisonand Irish Petroceltic will drill test wells inthe Mediterranean Sea, the Nile Delta andthe Gulf of Suez. At the end of 2013, thegovernment announced plans to auctionrights to 22 gas and oil concessions byMay of this year.

Strikes grip EgyptFebruary witnessed a wave of laboractions nationwide, as more than 20,000workers in various sectors took to thestreets seeking wage increases and betterworking conditions. All 28 public trans-port garages in greater Cairo went onstrike starting Feb. 22, demanding to beincluded in the new LE 1,200 minimumwage scheme. According to AhramOnline, workers in the sector earnbetween LE 600 and LE 1,400 per month;although the Public Transit Authority isstate-owned, it is classed as a businessunit rather than an administrative entityand is therefore not covered by the newminimum wage law. On Feb. 24, the

Ministry of Finance approved the alloca-tion of LE 15.2 million to meet demands,but workers rejected the offer.Meanwhile, employees at Egypt’s largesttextile firm went on strike for 12 days,agreeing to suspend it on Feb. 22 after theMinistry of Investment said it would lookinto their demands, which also includedgetting paid the new public minimumwage. Among professional syndicates,doctors continued a partial strike demand-ing better pay and higher governmentspending on health care. Even police gotin on the action, with low-ranking officersin seven governorates walking off the jobto protest hazardous working conditionsand low wages. Interim President AdlyMansour announced Feb. 19 that policewould be entitled to a 30 percent salaryincrease beginning this month.

Egypt leads insocial media useAmong Egyptians with Internet access,88 percent report using social networkslike Facebook and Twitter, putting them atthe top of a list of emerging markets sur-veyed by the Pew Research Center’sGlobal Attitudes Survey. The poll alsofound that 92 percent of Egyptians aged

19 to 29 own a cell phone, with 32 percentof that age group owning smart phonesable to access the Internet. Overall, 88percent of respondents reported owning amobile phone, and 68 percent ofEgyptians said they did not have a work-ing landline. However, Egypt lags behindits neighbors in other mobile technologymetrics. Only 6 percent of cell phoneowners reported using their phones tomake or receive payments, compared to68 percent in Kenya and 50 percent inUganda.

Monthly inflationinches upHeadline consumer inflation ramped upby 1.42 percent month-on-month inJanuary, compared to a 1.02 percentdrop the previous month. The annualrate slowed to 11.36 percent comparedto 11.66 in December, due to favorablebase effects from the previous year.The Central Bank of Egypt attributedthe bulk of the monthly increase to a9.15 percent rise in fresh vegetableprices, which contributed 0.71 percent-age points to headline inflation. Otherfood prices registered increases as well,including a 6.65 percent rise in milk, a

In Brief

Business Monthly – March 2014 I 13

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4.98 percent rise in poultry and a 2.76percent rise for fish and seafood. Theincreases were partially offset by a 16.4percent decrease in the cost of butanecylinders.

CBE establishesmortgage fundIn a move aimed to bolster Egypt’sconstruction and real estate sectors, theCentral Bank announced Feb. 18 that ithas allocated LE 10 billion to financingmortgages for low- and middle-incomebuyers. The funds will be channeledthrough local banks over a period of 20years and lent at between 7 and 8 per-cent interest, well below current inter-bank rates of around 8.3 percent. Themortgages are available for propertiesin selling for LE 300,000 or less in newurban communities.

Population hits86 millionWith 1 million Egyptians born sinceAugust 2013, Egypt’s populationreached 86 million last month, accord-ing to statistics agency CAPMAS. Anadditional 8 million Egyptian citizens

live abroad, bringing the worldwidetotal to 94 million. The birth rate hasspiked in recent years, with figuresbetween 2010 and 2012 showing thelargest two-year jump since Egypt’sgovernment began keeping records.With resources strained and youthunemployment estimated at around 25percent, the population bulge threatensto exacerbate social unrest.

Tuk-Tuk importssuspendedClaiming the three-wheeled motorizedrickshaws are being used as getawayvehicles for criminals, Egypt’s govern-ment on Feb. 12 imposed a one-year banon importing tuk-tuks. Imports of fullyassembled motorbikes and their compo-nents were also suspended. Widely usedin informal settlements, tuk-tuks haverecently been appearing in more upscalelocales like Maadi, where many considerthem a blight. However, GB Auto,Egypt’s largest car assembler, warned thatthe import ban would have an “adverseimpact” on their profits, noting that in thefirst three quarters of last year, two- andthree-wheelers contributed 13 percent tothe company’s bottom line.

Do you buy lo cally produced goods?

I always buy from street vendors and they sell mostly Chinesestuff. They’re the only ones I can afford. I sometimes thinkthat some of the things they sell are actually made in Egyptbut have a “Made in China” sticker to make people buythem! For me, it doesn’t really matter where it’s manufac-tured, as long as I can afford it.

Nesma Abdel Mohaimen, 36, sales clerk

I probably buy more Egyptian-made products than I think Ido, but almost all will be licensed international brands. I buythem for the brand name. And because the imported alter-natives just are way too expensive.

Samia Fahmy, 35, housewife

I take extra care if I’m buying stuff made in Egypt. I prefermy shampoos and creams and soaps to be the importedstuff, but sometimes I can’t find what I need, so I buy inter-national brands made here. Diapers are a case in point.

Tahany Fahmy, 29, nursery owner

I’m not rich, so I have to watch where my money goes. I’d saymy daily consumption is Egyptian-made products, but the restis probably all Chinese. I don't look at where it’s made—Ijust look at the packaging and the brand name. If it doesn'tlook good or the brand name is strange, I don't buy it.

Mohamed Abdel Moneim, 39, carpenter

I shop at just a few places whose quality I trust. I tend to goand see what I need, and if I can afford it, I buy it. My expe-rience with Egyptian-made non-perishable items is notgood—a lot of electronics go bust a couple of months afterI buy them. So I usually go for Chinese ones, because they’recheaper than the Egyptian alternative and their quality is abit better.

Abdel Salam Masoud, 41, chef

I don't remember the last time I bought a non-perishableEgyptian product. It’s not about their quality or price; myproblem is I don’t find anything I like. So I go for imports, andChinese goods have the biggest variety. If you choose careful-ly, they’re not half-bad from a quality standpoint. You justhave to be careful about what you’re getting and from where.

Heba El Tawfiky, 26, accountant

I buy what I can afford—I don't really care where it’s made.I buy a lot of Chinese products because they’re always well-priced and there’s a lot of variety. I’m not necessarily happydoing it because of what you hear in the media, but they’rethe only ones I can afford.

Hamdia Mohamed, 47, housewife

I really don't care where they’re made—I care about thebrand name. If you buy a Mercedes or a BMW that’s assem-bled in Egypt, that’s technically an Egyptian-made product.And if you look at an iPhone assembled in China, that’s tech-nically a Chinese-made product. I think times are differentnow—it doesn't really matter where they are made, it’sabout who’s making them.

Kamel El Saleh, 47, business owner

COMPILED BY TAMER HAFEZ


In Brief

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■ Kurdistan agrees to selloil via BaghdadAfter weeks of negotiations betweenBaghdad and the autonomous region ofIraqi Kurdistan, an agreement was reachedFeb. 19 that will see Kurdistan export oilvia Iraq’s central marketing body. Theautonomous region had previouslyplanned to bypass Baghdad and sell oildirectly via a newly constructed pipelineto Turkey that could eventually move 2million barrels a day. The Iraqi govern-ment views independent oil sales asunconstitutional and tantamount to smug-gling and threatened to cut Kurdistan’sshare of the national budget and take legalaction against Ankara if the plan wentthrough. Exports via the Mediterraneanport of Ceyhan, Turkey were put on holdto give negotiations a chance to proceed.Despite the February agreement, disputeshave persisted about how oil revenue is tobe shared. Officially, Kurdistan is entitledto 17 percent of Iraq’s vast oil wealth, butthe region claims it has been getting lessthan its fair share, leaving governmentworkers unpaid.

■ South Sudan conflicthits oil industrySouth Sudan has long been plagued by dis-agreements with its northern neighborSudan, but now its oil industry is facingstrife within its own borders. The crisis inSouth Sudan began in mid-December,when President Salva Kiir and sacked for-mer Vice President Riek Macher, with eachaccusing each other of plotting a govern-ment takeover. In a conflict that has killedthousands, displaced more than 800,000people and been marked by atrocities onboth sides, rebel forces loyal to Macherhave been battling with government troopsfor control of key oil hubs in Unity andUpper Nile states, prompting energy firmsto evacuate non-essential staff. TheFinancial Times reported that oil execu-tives believe a direct attack on the fields isunlikely but fear that rebels may encirclethe fields to gain leverage. Since the con-flict began, output has fallen by 40 percentto 150,000 barrels a day. Oil makes uparound 98 percent of South Sudan’sincome, so a major drop in revenue wouldmake it nearly impossible for Kiir to keep

his government running. Disruption ofSouth Sudan’s oil industry also threatens tocause problems for Sudan, which relies onrevenue from pipeline transit fees.

■ Jordan firms to importIsraeli gasTexas-based Noble Energy has signed adeal with two Jordanian firms to exportnatural gas from its offshore Israeliholdings. Under the deal, which is esti-mated to be worth $500 million over 15years, Jordan-based bromine and fertil-izer company Arab Potash will be sup-plied with gas from the Tamar field,which has estimated reserves of 10 tril-lion cubic feet of gas. Petroleum-poorJordan relies on imports for around 95percent of its energy needs. Previously,it depended on Egyptian gas for around80 percent of that, supplied via the ArabGas Pipeline, which runs throughEgypt’s Sinai Peninsula. But supplieshave been repeatedly disrupted in recentyears, with militants in the restive Sinaiblowing up parts of the pipeline 20times since the 2011 revolution thatoverthrew President Hosni Mubarak.


Region Notes

Map intended for illustrative purposes only and may not accuratelydepict national boundaries or disputed territories.

Mohamed AbdelWahid sits with-his family on atwo-seat sofa inhis living roomin Kit Kat one

recent winter afternoon and shows off alate ’90s model Toshiba TV set he pur-chased two weeks ago. At LE 250, it’san investment from which he appearsto be getting plenty of mileage. Mostmornings, his wife, Farha, turns on thetelevision around 9, when her husbandleaves for his job as a security guard ata local computer mall, and doesn’tswitch it off until it’s time to go tosleep around 1 a.m. To entertain herselfwhile she does the housework andtakes care of their two small children,she watches Turkish soap operas, cook-ing shows and reality talent competi-tions. Once, she was even inspired byan informercial to purchase a set ofkitchen utensils. Unfortunately, the latest addition to

the Abdel Wahid household is amongthe millions of television sets that maysoon broadcast nothing but static whenthe country switches to a digital broad-casting signal some time in the next 10to 14 months. Egypt has agreed tocomply with the global cutoff date ofJune 2015 to transition from analog todigital terrestrial television (or DTT)set by the InternationalTelecommunications Union, the UnitedNations agency that allocates radiospectrum and satellite orbits. Recently,officials told reporters that the countryis on track to make the digitalswitchover, though by most accounts,very little has been done to prepare forthe change technologically or educate

In Depth

BROADCASTING

SIGNALS FUZZY AS EGYPTCOUNTS DOWN TO DIGITALBY TAMER HAFEZ

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the public about its implications. Norhas the government addressed the con-sumer cost challenges the shift willinevitably raise in a country in whichTV is the number one informationmedium. Some 95 percent of Egyptianhouseholds own a television, amount-ing to an estimated 15 million TV sets.Once the switch takes place, those witholder, analog TVs will have to pur-chase a set top box to convert the digi-tal signal back to analog. AshrafHamdy, chairman of LG ElectronicsEgypt, believes that some one-third oftelevisions fall into that category. A report on digital media in Egypt

published last August by the NewYork-based Open Society Foundationsconcluded that the process of convert-ing Egypt to digital TV had thus farbeen “extremely chaotic,” as HassanMekkawi of the Egyptian Radio andTelevision Union put it, with “virtuallyno planning in effect.” A few very lim-ited digital conversion measures havebeen undertaken by the government;such as outfitting a handful of exclu-sive neighborhoods including Zamalekand Garden City to receive digitalbroadcasts of some Gulf-based chan-nels such as MBC and Rotana. Somestate-owned stations have also convert-ed a few studios to digital broadcastingon a trial basis. Complicating thingsfurther, however, the ERTU, which hastraditionally controlled broadcasting inEgypt, is reportedly reluctant to handover control of the airwaves to theNational Telecom RegulatoryAuthority (which will take over whenEgypt switches to the digital transmis-sion, when frequencies will also beshared by other players such as mobiletelecom firms and Internet providers).According to press reports, Maspero,as the ERTU is commonly known, hasso far stubbornly refused to vacate itsanalog frequencies. Some industryinsiders speculate that the deeply-indebted state broadcaster is ultimatelyholding out for a deal in which it willreceive compensation for relinquishingthe airwaves. The global shift from analog for-

mats—which were standardized back

in the 1940s and ’50s—to digitalbroadcasting has been described as“the most significant advancement oftelevision technology since color TVwas introduced,” as stated in 2008 byDavid Rehr, president and CEO of theU.S. National Association ofBroadcasters. It has numerous benefitsfor consumers, broadcasters and adver-tisers. In addition to much sharperimage and sound quality, digital trans-mission uses bandwidth much moreefficiently, allowing for many morechannels in addition to the integrationof other digital services such as mobiletelephones or high-speed Internetaccess. It allows broadcasters to trans-mit more stations at the same band-width and cost, offering greater valueto advertisers. Digital compressiontechnology can transmit eight to 10 TVchannels using the same amount ofspectrum used to transmit just one ana-log channel, a benefit known as “thedigital dividend.” At a press conferencein January to announce governmentinvestment in the ICT sector, Egyptiancommunications minister Atef Helmypredicted that the sector—which isexpected to grow by 10 percent this fis-cal year—will be expanding by 20 per-cent annually by 2017, creating thou-sands of new jobs. A number of countries around the

world have already made the digitalswitchover, including most of Europe,North America and some parts of Asia.In the Middle East, a handful ofnations, including Israel, Morocco andSaudi Arabia, have largely completedthe transition to digital broadcasting,while a number of Sub-SaharanAfrican countries have also made theshift in recent months. According to theITU agreement signed in Geneva in2006, all 193 member nations are sup-posed to make the change by June 17,2015, though it seems clear that a size-able number will probably need moretime. Non-compliance is risky. After 2015,

nations may use frequencies that arecurrently assigned for analog curren-cies for digital services without beingrequired to protect the transmissions of


In Depth

neighboring countries against interfer-ence. In other words, Egyptian stationsthat are still transmitting via analogafter the deadline will not be able to suedigital broadcasters who infringe ontheir domestic frequencies. “There isno option but to convert to digital,”says Amr Badawy, former head of theNTRA. Even if Egypt is granted anextension, experts say that sooner orlater, it’s inevitable. As more and morecountries switch off their analog sig-nals, manufacturers will stop makingthe old hardware, meaning analogequipment and spare parts are likely tobecome increasingly obsolete andexpensive. “For international manufac-turers, it’s a matter of economies ofscale,” says Sayed Azzouz, sector headof the Radio Spectrum Managementand Planning division at the NTRA. A bare bones digital television set

manufactured here in Egypt retails fora little under LE 2,000 for a 32-inchscreen model at a downtown electron-ics shop, while an imported versioncosts about twice as much. Digitalreceivers, meanwhile, currently sell forLE 250 to LE 300. Electronics retailersexpect that the impending transition todigital will open the door to anonslaught of cheap TVs imported from

China and Taiwan that could sell foreven lower prices than today’s sets.Hamdy, the LG executive, predicts thatmore than half a million such low-endtelevisions might be sold in Egypt duringthe first year of digital broadcastingalone, though that is likely to level off asthe market adjusts to the change. For thevast majority of Egyptians, however,who can't afford to shell out more thanLE 2,000 for a new digital TV, the morepopular option will likely be to purchasea so-called set top box, which convertsthe digital signal back into analog tomake the new signal compatible with theold equipment. How much set top boxeswill cost locally remains unclear at themoment, as the private sector has yet toimport or manufacture them. In theUnited States, which largely completedthe digital switchover in 2009, the con-verters sold for between $40 and $80. At the time, the American govern-

ment partially subsidized the digitaltransition by offering owners of analogTV sets a maximum of two $40coupons each (for two-televisionhouseholds). The subsidy was financedby a fraction of the more than $19 bil-lion the government raised in a wire-less spectrum auction in advance of theconversion. Similar subsidy schemes

have been organized in other countries,including South Africa and Thailand,and some industry experts say that inorder to foster a smooth transition todigital broadcasting, the Egyptian gov-ernment will have to offer consumerssome help. “The government needs topush forward with some sort of finan-cial support for individuals or to coop-erate with the private sector to offerlow-priced hardware for those whocan't afford it,” says Mahmoud Shahin,a professor in the ICT department atCairo University. However, the govern-ment is already burdened with an LE112.5 billion bill for laying down thenecessary digital infrastructure,according to official estimates. Privatesector broadcasters—who have onlyset up shop in the last decade or so inEgypt, when the state opened up theairwaves to private satellite stations—have much newer infrastructure, whichshould make the transition smootherand less costly. The price of the new technology

will inevitably drop. “Cost will not bea major worry in time,” says Badawyof the NTRA, who points out thatsmart phones, for example—whichjust a few years ago were affordableonly to the privileged classes—arenow owned by Egyptians from allwalks of life. Even so, digital televi-sion equipment is likely to remain outof the reach of many for the foresee-able future. Apart from subsidies,there has been no mention of explor-ing ways to provide incentives forlocal firms to manufacture low costset top boxes. In any case, wheneverEgypt does finally flip the digitalswitch, shutting off its analog signalfor good, experts say the governmentwill have to come up with some sortof plan to enable average families likethe Abdel Wahids to purchase the nec-essary hardware. Nobody, includingMohamed Abdel Wahid, yet knowshow much he might have to spend sohis wife can keep watching “As TimeGoes By” and “X Factor,” but he’ssure it will be more than he canafford. “I’m on a very tight budget,”he says.


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On several floors of an oldbeaux arts building next tothe Sha'ar HashamayimSynagogue in downtown

Cairo, construction workers are busyputting the final touches on what willbe Egypt’s first dedicated independentmovie house. Cimatheque, an “alterna-tive film center” that aims to “celebratefilm and support the needs of indepen-dent filmmakers in Egypt,” will alsofeature a darkroom and a film archivespecializing in local and regional worksas well as a café for moviegoers. On arecent afternoon, amid sawdust and thepounding of hammers, workers werebusy laying soundproofing under thesupervision of Mohammed Abdallah,whose background is in the non-profit

art world. Abdallah, along with inde-pendent filmmaker Tamer El Said andBritish-Egyptian actor Khalid Abdalla,spearheaded the project, which willrely heavily on grants from culturalorganizations. It may never be prof-itable, acknowledges Abdallah, whononetheless believes that there is anappetite among Cairo’s young, urbanpopulation for films other than theusual commercial mix of Egyptianmelodramas and slapstick comediesand the latest blockbuster fare fromHollywood. The partners, who hadbeen running a production company inthe building and offering occasionalscreenings for film buffs, thought:“Maybe we can start something that’s alittle more public,” he says, “something

a little more like a hub for this grow-ing, nascent community of alternativefilmmakers.”Independent films in Egypt have

long suffered from a chronic lack offinancing, distribution and exposure.But broader tastes and more relaxedcensorship rules in recent years cou-pled with the advent of the Internet andnew digital technology have led to atakeoff of the genre. Meanwhile, thehistoric events of the last three years inthe wake of the January 25 revolutionhave provided plenty of dramatic fod-der for an international audience. “TheSquare,” which tells the story of theuprising and depicts many of the strug-gles and unrest that followed, earned anOscar nomination this year, Egypt’s

ENTERTAINMENT

EGYPT’S INDEPENDENT MOVIEINDUSTRY HITS ITS STRIDEBY MAT WOLF

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WORKERS INSTALL SOUND INSULATION IN THE FLOORS OF CIMATHEQUE, A MOVIE THEATER AND “ALTERNATIVE FILM CENTER” IN DOWNTOWN CAIRO.

first, for Best Documentary Feature.Directed by Jehane Noujaim, anEgyptian-American whose past filmsinclude “Startup.com” and “ControlRoom,” “The Square” premiered atlast year’s Sundance Film Festival inthe United States and is currentlybeing shown online via the Americanstreaming channel Netflix. To date,though, it has not been screened com-mercially in Egypt. The director saysthe government has blocked the moviefrom being shown here, but the headof the censorship board denies that,saying the filmmakers never filed theproper paperwork.Cairo has long been known as the

Hollywood of the Middle East, with theoldest and most prolific movie industryin the region. However, the golden ageof Egyptian cinema has long sincepassed, and local commercial films aretypically formulaic dramas, actionflicks or slapstick comedies that drawan audience in Egypt and the rest of theArabic-speaking world but are mostlydismissed by critics. In addition to“The Square,” a handful of Egyptian-made productions have in the last fewyears become notable exceptions tothat trend. “Excuse My French,” whichdepicts the struggles of a Coptic boywho poses as a Muslim in order to fit inat his public school, was the top gross-ing local film in Egypt for three weeksafter it was finally released in lateJanuary, after the script was initiallyblocked by censors for fear that itwould stir religious strife. Its director,Amr Salama, is no stranger to sensitivesocial topics—his 2011 film “Asmaa,”about discrimination faced by an HIV-positive Egyptian woman, won criticalaccolades for its frank exploration ofthe prejudices and fear around AIDS inEgypt. Two of the partners behind

Cimatheque, Khalid Abdalla and ElSaid, are also the founders of ZeroProduction, a Cairo-based independentfilm production house that was shapedby their involvement in Mosireen, amedia collective that was borne ofactivist efforts to document the revolu-tion online. These efforts gained

momentum as a result of the greatdemand for raw footage of the TahrirSquare protests and other events in2011. Zero Production, which ishoused in the same building asCimatheque, is slated to release ElSaid’s first fiction feature, “In the LastDays of the City,” about a group offriends from Egypt, Iraq and Lebanonwho have been shaped by their citiesand the instability of their region. Oneof the film’s stars is the third partner ofthe trio, British-Egyptian actor KhalidAbdalla, who appeared in “TheSquare” as well as Hollywood moviessuch as “The Kite Runner” and“United 93.” What defines independent film in

Egypt is somewhat subjective, as theterm has evolved to refer mainly to agenre that aims to transcend the pre-dictable formula of mainstream cine-ma. “It’s about independence from themajor producers, who in fact also hap-pen to have a monopoly on distributionto an extent as well,” says MohammedAbdallah. Indeed, a handful of firms have his-

torically controlled the vast majority offilm distribution in Egypt. In 2010, the

Egyptian Competition Authorityaccused two companies—which con-trolled 95 percent of the Egyptianfilm market, according to the ECA—of engaging in anticompetitive behav-ior by only showing their own filmsin their movie houses. These samefirms also run the bulk of cinema pro-duction in Egypt. “They totally con-trol everything, says Ahmad Abdalla,a well-known local independentdirector. “If those four or five peopledon’t like your film, or don’t like theway you’re producing your film, orsometimes if they don’t like you per-sonally, your films will never bescreened in theaters.” Abdalla has become an example of

how new technology and cheaper pro-duction costs are allowing independentfilmmakers to make movies and getthem seen without relying on main-stream channels. Having begun hiscareer as an editor of commercial filmsand ads, Abdalla decided a few yearsback to shift course. “I wanted to makemy own movies,” he says. His 2009debut film, “Heliopolis,” which chron-icles the lives and unfulfilled dreams ofsix young Cairenes as they contend

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AHMED DASH (FAR LEFT) AND MOAZ NABIL AS HANY AND MOMEN IN “EXCUSE MY FRENCH.”

with the chaos of the capital, was shotwith digital cameras for a mere $7000and went on to screen at the TorontoInternational Film Festival. The crewand cast, including well-known localmovie actor Khaled Abol Naga,worked for free. For his second film, “Microphone,”

about the underground music scene inAlexandria, Abdalla made the movievia Film Clinic, a Maadi-based produc-tion house that makes a mix of main-stream and art house films. MohamedHefzy, Film Clinic’s founder and gen-eral manager, explains that crowd-pleasing comedies like “Sameer andShaheer and Baheer,” which depictsthe hijinx of college students who trav-el back in time, reliably draw enoughbox office revenue to enable the studioto produce more serious films likeAhmad Abdalla’s latest, “Rags andTatters,” which chronicles the chaosand rage that followed the 2011 upris-ing through the eyes of a released pris-oner who wanders Cairo.Hefzy says his established relation-

ship with the mainstream movie indus-try in Egypt has also enabled him to airfilms that might not otherwise receivelocal distribution. “It has allowed me tobring what many people consider inde-

pendent cinema closer to the audi-ences,” he says. Hefzy also produced“Excuse my French,” which has been asurprise runaway success, bringing inmore than LE 3 million in its first threeweeks. Still, the script initially ran afoulof government censors when it was firstreviewed in 2010, only receiving agreen light two years later under a newadministration. “Family Secrets,” fromdirector Hany Fawzy, about a youngmiddle class Egyptian man coming toterms with his homosexuality, wasscreened in January at the Luxor FilmFestival but has yet to air in Egyptianmovie houses as Fawzy remains lockedin a battle with the censorship board,which has demanded that a number ofscenes be cut from the film. Some independent Egyptian film-

makers whose movies have met withacclaim abroad have encountered a lessenthusiastic reception at home—if theyare lucky enough to get their workscreened in Egypt. Hesham Issawi is anEgyptian director who was working inLos Angeles when he saw “Heliopolis”in 2008 and decided to move backhome after two decades. “That moviemade me say ‘Oh my God, there isindependent cinema in Egypt! I canmake a movie here,’” he says. The first

feature-length film he made locally,“Cairo Exit,” about an interfaithromance between a Coptic Christiangirl and a Muslim boy, addressed sensi-tive subjects like premarital sex andaccidental pregnancy. It was rejectedby Egyptian censors. Issawi decided togo ahead and produce the movie any-way, without a permit. Completed in2010 for $500,000, largely with fundsfrom the organization that runs theDubai Film Festival and private equityfirms in the Gulf, the film opened topositive reviews. It has since beenscreened around the globe, including atthe prestigious Tribeca Film Festival inNew York in 2011, but only receivedpermission in January 2014 to beshown in Egypt. Issawi, who now co-runs his own production house in Cairoand is working on a new movie,believes that as the independent filmscene in Egypt continues to gainmomentum, it will become easier forfilmmakers to win financing from abroad array of sources. As long as theseproduction can be made cheaply, hepoints out, they are a low risk invest-ment. “I think these movies are thehope of Egyptian cinema,” he says.“They’re really going to bringEgyptian cinema back!”


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MARYHAN AND MOHAMED RAMADAN AS AMAL AND TAREK, THE STAR-CROSSED YOUNG CHRISTIAN-MUSLIM COUPLE AT THE CENTER OF “CAIRO EXIT.”


In Depth

COVER STORY


From cell phones to cigarettes, imported Asian-made products are plentiful and cheap. But withsmuggling becoming rampant amid the chaos ofthe last three years, questions have been raisedabout the safety of some of these products.Meanwhile, Egyptian factories are finding it everharder to compete.

BY TAMER HAFEZ

Aplaque in Hebrew,Arabic and Englishmarks the start ofHaret El Yehud, theold Jewish Quarter,once a residential area

of jewelers, tailors and grocers in OldCairo that now resembles an urbanChinatown. The neighborhood is alabyrinth of 360 narrow alleys and some10,000 shops, the vast majority of themlittle more than makeshift closets withstreet tables piled high with retail goods.In a city awash with cheap, importedgoods from China, Haret El Yehud isknown as an informal shopping mecca foreverything from half-pound earrings togiant plastic toys and electronics andappliances of every stripe. A food proces-sor supposedly made by “GeneraalIlectric” sells for around a 10th of the costof the real thing. Abdel Rahman Badawy,a 73-year-old trader who has been sellinggoods here since his teens, says even he issurprised lately at how low some tradersprice their wares. “You have no idea from

where they get their stuff to sell it socheap,” says Badawy. While he insists heimports his budget jewelry and ladies’scarves through proper channels, every-one knows that many of the goods sold inHaret El Yehud are smuggled. Black market goods that enter the

country from China with forged docu-ments or no papers at all make up a grow-ing share of Egypt’s import economy. Theinflux of cheap, plentiful goods has founda ready market among an enormous pop-ulation that’s getting poorer every year.More than a quarter of Egyptians nowlive below the poverty line, according togovernment statistics. Recent UnitedNations figures indicate that between2009 and 2011, around 15 percent ofEgyptians slipped into poverty, abouttwice as many as climbed out. Mountingcomplaints from local traders and manu-facturers about the flourishing black mar-ket in cheap, Chinese goods have shone aspotlight on what many say is lax enforce-ment of import regulations, particularly inthe wake of worsening security since the

2011 revolution. In a statement issued inDecember, then Minister of Trade andIndustry Mounir Abdel Nour promisedthat officials would “look into” regula-tions governing the inspection of goodsimported from China. His remarks camepartly in response to several highly publi-cized incidents concerning sub-standardor counterfeit Chinese imports, includinga story in late 2011 about fake LE 1 coinsimported from China that had made it intocirculation. Late last year, there were sto-ries about black market Chinese cigarettesfound to contain higher-than-normal lev-els of toxic chemicals, while electromag-netic waves emitted from improperly con-structed Chinese-made battery-poweredtoys had reportedly caused people to suf-fer headaches and blurred vision. Officials say they are reviewing the so-

called CIQ (China Inspection andQuarantine) standards agreed to in 2010by Egypt and China, which sought to bol-ster quality and efficiency by providingguarantees from the Chinese governmentbefore goods were shipped that they had


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CHINATOWN: THE OLD JEWISH QUARTER IS KNOWN AS CAIRO’S INFORMAL SHOPPING CENTER FOR INEXPENSIVE ASIAN-MADE IMPORTS.

met Egyptian quality standards. However,many have pointed out that adding stricterregulations to what is already a cumber-some customs process for imports won’tsolve what is really a problem of enforce-ment. Even before the revolution, bureau-cratic import rules were often skirted bysmugglers, says Mohamed Abdelmohsen,head of the Alexandria BusinessAssociation’s import committee. Butsince 2011, “their grip has loosened, whilethe decision-making process has sloweddown considerably,” he says. “This, ofcourse, is amplified by the security diffi-culties we are facing now.” Meanwhile,local factory owners complain that theysimply can’t compete with cheap goodssmuggled from China. A packet of fivegirls’ hair bands made in Egypt, for exam-ple, costs LE 5, while a similar productimported from China is LE 1 or LE 2.

Good intentionsMahmoud Yassin, 53, used to run a facto-ry in Qalubya that made all-natural leather

handbags and belts with locally-producedcomponents and dyes. But in 2007, hegave up the struggle to compete withcheap Chinese purses that were often fauxversions of popular styles by Gucci orMichael Kors. Now he rents out his facto-ry for storage. Meanwhile, he sells toysand home accessories out of a shop herents in the old Jewish Quarter. On arecent afternoon, he deftly juggled negoti-ations with three different potential cus-tomers while his two sons guard the mer-chandise from shoplifters. Even as thevalue of the pound has plummeted recent-ly, driving up import costs substantially,selling goods from abroad is still moreprofitable than dealing in locally-pro-duced wares, he says: “I would be stupidto price anything higher than I absolutelyhave to.” Between 2002 and 2013, Chinese

imports to Egypt jumped from $853 mil-lion to $8.35 billion, making it Egypt’snumber one exporter. In 2010, in responseto the onslaught of Chinese goods flood-ing the local market, then Minister of

Trade and Industry Rachid MohamedRachid spearheaded the CIQ agreementas part of a larger effort to open up thecountry to international trade and invest-ment. In addition to quality assurance, theagreement was supposed to fast trackimports to meet the rising demand forChinese goods in Egypt. It quicklybecame obvious, however, that there werea number of problems and loopholes inthe CIQ arrangement. It “was and still isrisky,” says Yehia El Zananiry, vice presi-dent of the ready-made garments divisionat the Federation of Egyptian Chambersof Commerce. “For one, there is no con-trol over the corruption that could happenon the Chinese side of the equation,” hesays. Egyptian officials have no way ofascertaining whether or not proper inspec-tions have been carried out on the Chineseside. Within months after the deal wassigned between the two nations, fakeChinese certificates began to emerge.Since there is no computerized system

to enable customs authorities to run on-the-spot checks ensuring the authenticity


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NATURAL SELECTION: EGYPTIAN-OWNED FIRMS LIKE THE CAIRO COTTON CENTER IN QALYUBIA STRUGGLE TO COMPETE WITH CHEAP CHINESE IMPORTS.

of such paperwork, Egyptian authoritiesinstead devised a system wherebyimporters must sign a document promis-ing that their CIQ certificates are genuine.It takes inspectors around three days toverify the paperwork; in the meantime,his goods are held at the port of entry, andthe importer has to pay for storage.Moreover, the lack of direct communica-tion between the two governments meansthat it’s left up to Egyptian importers tokeep up with officially determined qualitystandards for specific products. Often,that simply doesn't happen, or traders pro-vide Chinese exporters with incompleteor outdated standards. Because of theseissues, Egyptian inspectors usually justexamine the goods from scratch anyway.“It's safer for me to inspect it 100 per-cent,” says Alaa AbdElkareem, chairmanof Egypt’s General Organization forImport and Export Control. But asZananiry points out, this more or lessdefeats the whole purpose of CIQ, whichis supposed to streamline the importprocess.Moreover, the price of obtaining CIQ

certification, which ranges from $350 to$500, depending on the product, also falls

on the shoulders of traders. “It’s a hugecost,” says Zananiry. Many of themimport “closed crates,” in which theimporter pays a flat rate for a mix ofitems, the details of which he doesn’tknow until the crate is opened uponarrival. For example, a shipment mightcontain a variety of toys, electronic acces-sories like batteries and chargers, hairbrushes, shoelaces and so on. This ischeaper than an “open crate” arrange-ment, in which the importer pays for eachitem separately. The exporter is supposedto provide a CIQ certificate for each kindof import, and obtaining such certificatesin China through above board channelscan take up to 28 days. All this meansdealing with a lot of expensive and cum-bersome red tape with little guarantee inthe end that the items inside actually meetquality standards. Smuggling, on the other hand, bypass-

es all these lengthy, expensive require-ments. Black market imports werealready common before the January 25uprising, but in the last three years, bordercontrols have broken down, particularlyin the lawless Sinai Peninsula, the entrypoint into Egypt for many smuggled

goods. “They lost their grip even moreafter January 2011,” says MohamedAbdelmohsen of the Alexandria BusinessAssociation. Imported black market ciga-rettes, for example, are everywhere. AtefYacoub, head of Egypt’s ConsumerProtection Agency, estimates that about18,000 Chinese factories are supplyingEgypt with smuggled goods, costing thegovernment LE 4 billion annually in losttax revenue.

Survival of the fittestPort Said, a coastal city in the country’snortheast corner, where the Suez Canalmeets the Mediterranean Sea, is a majortrading center as well as a transit and refu-eling station for cargo ships. The port wasdeclared a duty free zone as part of AnwarSadat’s Open Door Policy in the mid-1970s, and the city developed into a tradehub that today buzzes with importers andstreet side vendors making deals at allhours of the day and night. Trucks loadedwith merchandise continuously rumblebetween the port and border checkpoints,while run-down pickups, some lackinglicense plates, carry their cargo toward


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FOUL PLAY: REPORTS OF BLACK MARKET TOYS FROM CHINA THAT POSE A SAFETY HAZARD TO CONSUMERS HAVE RAISED ALARM BELLS RECENTLY.

side roads, that are perhaps manned bylower-ranking officers willing to pock-et a modest bribe in exchange for freepassage. Smugglers often enlist Bedouin traders,

who are intimately familiar with the ter-rain and have years of experience operat-ing out of the sight of the government, tomove goods through Port Said’s south-eastern border and through the desert tostorage facilities on the outskirts of Cairo,where wholesale vendors buy the mer-chandise and distribute it to street vendorsand traffic hawkers. Another popularmethod of bypassing CIQ regulations isto stop en route with Chinese cargo inports such as Vietnam, Jordan and theUAE, where importers simply switchstickers on the crates, falsifying the coun-try of origin. “This practice has been donefor some time now,” says Zananiry. For years, Egyptian craftsmen fash-

ioned souvenirs capturing Egypt’s storiedancient history, from King Tut key chainsand Sphinx boxes to busts of QueenNefertiti. But nowadays, even these sym-bols of Egyptian history and pride areincreasingly made in China. “If you walkdown El Moez Street or in Khan ElKhalili, the majority of shops are sellingChinese-made pharaonic, Islamic andCoptic souvenirs,” says Abdel RehimRehan, an official with the Ministry ofArcheology. Rehan, an advocate for thepreservation of Egypt’s history and cul-ture, laments the fact that cheap Chineseimports have replaced authenticEgyptian-made knickknacks, weakeningyet another once-vibrant local industry,but he acknowledges that, like a lot ofproducts, the Chinese versions are simplycheaper and offer more variety. NohaMohamed, a university student studyingFrench literature, complains that sherecently spent LE 250 at a downtownshop for an Egyptian-made leather hand-bag. “This is a lot of money, so I thoughtit would be of good quality,” she says, butwithin two weeks, both the strap and thezipper had broken. The black artificialleather handbag she now carries cost herLE 50. “And no one knows it’s Chinese,”she says. Of course, it’s not just Egyptian manu-

facturers that are struggling to compete

with Chinese imports; small-scale localmanufacturers around the globe havebeen driven out of business by the inex-pensive wares churned out by China’smassive factories. Still, some point outthat Egypt’s failure to keep pace with newtechnologies and business practices hashastened its demise. Mahmoud Hussein,who runs an accessories shop in theJewish Quarter, where’s he’s been sellinggoods for more than two decades, says hesees fewer and fewer items coming out ofthe small, “under the staircase” work-shops that once flourished in the district.Without adopting modern equipment andmethods, “Of course the quality of theproduct was going to deteriorate,” saysHussein. Moreover, as the pound hasplummeted in recent years, some largerEgyptian factories have focused exclu-sively on catering to an export market,where they can make a profit in hardcurrency. Tarek Salah, a nearby toy shopowner, used to sell pencils from theNational Pencil Production Factory, alocal family-owned company. “A packetof pencils was LE 17. The Chinese pencilpacket was LE 6, and I never got anycomplaints about the Chinese one,” hesays. The National Pencil ProductionFactory has since shut down.

Caveat EmptorWhile they’ve found an enormous mar-ket among the poor in Egypt, Chinesegoods are sold to all walks of life. AtAlfa Market, a Cairo supermarketchain popular with expatriates andwell-heeled Egyptians for its largestock of imported goods, the kitchen-ware and electronics departments, toname two, are filled with “made inChina” stickers. “If it weren’t forChinese products, I think we’d be buy-ing so much less,” says MohamedAbdallah, 39, an auditor and father oftwo who was perusing some Chinese-made candlestick holders at the Alfabranch in Maadi one recent Saturdayafternoon. While Egyptians of all ages and

social classes hardly think twice aboutbuying such products, several mediareports of smuggled or sub-standardimports from China have frightenedconsumers. Late last year, hundreds ofowners of battery-powered flying toyhorses and yellow teddy bears reportedheadaches and numbness when han-dling the toys for more than a few min-utes. Lab tests revealed that the levelsof electromagnetic waves emitting


In Depth

OVERTAKEN: EVEN CHINESE-MADE CARS, LIKE THE GEELY PANDINO, ARE SELLING IN EGYPT.

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from the toys’ batteries were double thelevel considered safe. The incidenttook place despite a 2012 law requiringmore stringent tests on imported toys. It’s worth remembering that Egypt

imported LE 2 billion worth of toysfrom China last year. In 2013, 4,726shipments of toys totaling 47 tonsarrived in Egypt—and that’s onlycounting those that arrived legally. Officials insist that there is rigorous

testing of all consumer products enter-ing the country. But inefficiency andcorruption sometimes help faulty prod-ucts to slip through the cracks.Descriptions can be missing or inaccu-rate. Counterfeit cigarettes enteringEgypt from China have, by allaccounts, exploded into a thrivingblack market business. The latest majorseizure of these illicit tobacco productstook place in December, when 28 mil-lion black market Chinese cigarettes—in shipping containers with CIQ certifi-cates stating that they were householdappliances—were smuggled into thecountry via Ain Sokhna. The cigaretteswere found to contain higher-than-nor-mal carcinogenic chemical levels.

Counterfeit imported goods can poseother kinds of problems as well. Anunreported number of Chinese-made,LE 1 coins were discovered in circula-tion starting in 2011. Officials said theyhad been smuggled into Egypt insidetoys. The fake coins, which were actu-ally worth around 20 piastres, weresmaller and lighter than the real thingbut otherwise looked identical. AhmedAbou Gabal of the Cairo Chamber ofCommerce says other items, includingmedications like Viagra, have enteredthe country inside toys. Around 75 percent of counterfeit goods

seized worldwide between 2008 and 2010came from China, according to the WorldCustoms Organization. In recent years,Chinese officials have undertaken effortsto crack down on fake products. The gov-ernment seems to have realized that whilebeing “the workshop of the world” maybe a good thing, China’s reputation as asource of counterfeit products worldwideis not. For example, last summer, follow-ing a joint sting with Chinese authorities,U.S. customs officials seized 243,000fake electronic products slated for exportto American consumers.

Chinese-made products, like Egyptianones, vary widely in both price andquality, agree traders, sellers and officials.Even if Chinese-made goods aren’talways cheaper and better than competingproducts made in Egypt, the wild popu-larity of foreign-made products in generalmay go back to a widespread prejudiceagainst goods manufactured at home thathas been ingrained over the years in theminds of Egyptian consumers, says SoadEl Dieb of the Consumer ProtectionAgency. She explains that since the1980s, Egypt’s policy has been to protectdomestic industries at all costs, with suchmeasures as raising import taxes. Overtime, this protectionism made local indus-try complacent about quality. A percep-tion developed among Egyptians that for-eign-made goods were simply better. Inthe early 2000s, when the governmentopened up the local marketplace to com-petition, these factors worked togetheragainst local manufacturers, leaving themat a distinct disadvantage. “The Chineseproduct is a foreign product, and it’s alsosignificantly cheaper than its Egyptiancounterpart,” says Dieb. “Of course, itwas always destined to succeed.”


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UNDER THE TABLE: CHEAP, OFTEN SMUGGLED BRAND-NAME KNOCKOFFS MADE IN CHINA ARE AVAILABLE IN EVERY IMAGINABLE STYLE AND COLOR.


Technology

It became fashionable in the months following the2011 uprising in Egypt to refer to January 25 as“the Facebook revolution.” Journalists and acade-mics, especially in the West, penned exuberantanalyses about the newfound power of digital toolsto affect change in long-oppressed societies. Three

years on, the intelligentsia is not quite as sanguine, as peo-ple realize the limits of social media as a key to democraticreform. Nonetheless, the growth of the Internet in Egypt andthe Middle East has undeniably played a role. A new reportby the World Bank, “Broadband Networks in the MiddleEast and North Africa,” describes how “social networkingtools have the potential to enhance citizen engagement inthe region, promote social inclusion, and create opportuni-ties for employment, entrepreneurial activities, and socialdevelopment” among a population that is increasinglyyoung and urban. As of mid-2013, Egypt had some 14 mil-lion Facebook subscribers, accounting for more than a quar-ter of all Arab users. Despite this, the region lags behind therest of the world in terms of Internet access, the creation ofdigital content and the development of infrastructure toenable these things. Across much of the country and theregion, the price of broadband access has remained prohib-itively high, while take-up has been slow—largely becauseof a market structure that historically treated telecommuni-cations as a monopoly utility service.

As Egypt and other developing nations struggle to keep up withthe global transition to “knowledge-based” economies, access tothe Web is a key component to creating jobs and raising livingstandards of the poor. “There is growing consensus that broadbandInternet is critical in fostering sustainable economic developmentand job creation, and is strategic to the goals of reducing poverty,enhancing job opportunities, and fostering trade integration,” writethe World Bank researchers. Broadband Internet access—meaninga relatively speedy connection that is always on—has the power toinfluence many different economic sectors, from water to trans-portation. For example, factories can improve their performancevia so-called IT-enabled supply chains. Reliable, reasonably-priced Web access is a key factor in foreign direct investment,which has fallen precipitously in Egypt since the January 25 rev-olution. Broadband also enables “smart” infrastructure, includingelectricity grids and meters, and “intelligent” transport systems.With the country facing a serious and deepening energy crisis, thereport points out that such digital infrastructure “can greatlyenhance the performance of the electricity grid, reduce peak loadenergy requirements, allow for better integration of renewableenergy sources, and promote effective energy use.” While it has not created the egalitarian utopia that some initial-

ly envisioned, the Internet’s key role in the Arab Spring alsodemonstrates how the increased access to information and com-munication can foster social inclusion, accountability and humanrights. Around three-quarters of the approximately 46.5 millionArab Facebook users are between the ages of 15 and 29, 80

CONNECTEDBroadband access in the Middle East

Published by the World BankAnalysis by Rachel Scheier

percent of whom spend at least an hour each day updating theirprofiles. The report stresses that “social media is not only a domainfor liberal youth,” however, pointing out that three of the top fivemost-followed Arab personalities on Twitter are religious preach-ers. Social networking tools can provide a forum for things likejob-seeking and entrepreneurship as well as social improvement.Again, the region lags behind in this area, though Internet pene-tration rates are growing rapidly. Arabic digital content onlyamounts to 0.162 percent of the total online, while just 0.198 per-cent of websites are hosted in the MENA region. Governments inthe Middle East are “faced with a historic opportunity to leveragesocial media to better advance various development agendas fortheir increasingly youthful societies.” Between 2012 and 2017, Internet traffic in the Middle East is

expected to grow at a faster rate than in any other region in theworld, placing increasing demand on existing infrastructure.Even wealthy countries are exploring new, innovative models—such as public-private partnerships—to meet the investmentchallenges of building new infrastructure to meet this growingdemand. In 2011, Egypt launched a new ICT strategy for broad-band in response to snowballing demand for more bandwidthand the growing appetite for news and other video content andmulti-media services. The “eMisr National Broadband Plan”proposes creating a so-called special-purpose vehicle, withexisting operators as shareholders, as an option. Another strate-gy that has been discussed is partnering digital service providerswith the real estate industry to provide broadband Internet ser-vice in new developments.Thanks to its strategic location on the Red Sea corridor, Egypt

is home to some 13 submarine cables, more than all other coun-tries in the region except the United Arab Emirates, meaning thecountry has adequate international connectivity to meet demandin the short and medium-term. However, the country’s “back-bone infrastructure” is solely controlled by state-ownedTelecom Egypt, which owns and operates a 15,000 kilometerfiber-optic spine that extends to nearly all populated areas.“With TE having a monopoly on fixed infrastructure, no com-petitive offerings to its fiber-optic backbone by alternative infra-structure operators have been allowed,” states the report.“Although recent steps have been taken towards allowingmobile operators to build their own core infrastructure, theirlicenses do not allow for infrastructure leasing to other parties.As elsewhere in the region, “the lack of competition and limit-ed open access regulations pose significant constraints to theeffective use of international and regional connectivity,” keep-ing consumer broadband prices relatively high. Outside of the Gulf, Egypt has the highest penetration for

mobile broadband connections (via smartphones and otherdevices) in the region, and that number is expected to growexponentially in the coming years, depending on how the coun-try manages the impending transition from an analog to a digitalbroadcasting signal, a change that’s considered an opportunity

for the growth of mobile broadband (see “Signals fuzzy as Egyptcounts down to digital,” p. 18). Once again, the report empha-sizes the importance of fostering competition and eliminatingmarket barriers to promote growth, which will in turn fosterwider usage, increase efficiency and bring the prices of equip-ment down. Egypt and other MENA countries are well posi-tioned to follow the example of Eastern Europe, which inherited“decrepit, ill-planned and obsolete” network infrastructure fromthe Soviet era. Within a few years, however, “thanks to an effec-tive market liberalization approach, combined with effectivemeasures to lower deployment costs,” some of them surpassedthe West in terms of broadband speed and penetration rates.Lithuania, for example, where there is a wide array of Internetservice providers, 81 percent of all households had broadbandInternet connections by the end of 2012. Even with an unencumbered free marketplace to promote

faster, more widespread Internet connectivity, however, theWorld Bank researchers note that a “digital divide” persists,especially in poor, remote areas, where the cost of basicservice often remains prohibitively high. There is also a 34percent gender gap in Internet usage in the Middle East, thehighest in the world after Sub-Saharan Africa. Governmentsubsidies, imposing coverage requirements for telecom firmsand exploring alternative technologies are measures that havehelped extend Internet access to poor, remote areas in othercountries. Canada, for example, established a policy wherebyunderserved, rural areas could access broadband via satellite.Chile used a so-called reverse subsidy auction—in whichfirms compete by bidding down the value of the subsidy—inorder to develop its broadband network in areas wherecompanies did not otherwise have an incentive to operate. There is plenty of opportunity for a whole array of players

to satisfy the enormous appetite of the “young, technology-savvy population” for broadband Internet service in Egyptand other countries in the region. As well as creating jobs,efficient Web connectivity can bring “global knowledge” tolocal markets. Encouraging the development of such net-works will involve measures like enforcing regulatoryreform, eliminating monopolies, licensing more operatorsand getting rid of high fees and bureaucratic regulatory barri-ers. However, as the report points out: “This kind of reformalmost always involves addressing local resistance to change,often coming from those economic and political agents thatare profiting from existing rents. This is a tall order indeed.”Facilitating such change will mean exploring new and innov-ative ways to coordinate civil works with digital networks tomeet the demands of “a young, urbanized population” forboth housing and broadband Internet access. Lastly, a strate-gic regulatory framework “at the national and regionallevels” has the potential to launch the rapid expansion ofthese networks. “The stakes are high, and they are elevated bythe existing sociopolitical pressures for reform.”


Democracy

Dining Out


Maybe it shouldhave been a tip-off thatJambalaya, anew “Spanishfusion” restau-

rant in Zamalek, is named for a dish thatis actually from New Orleans. It’s truethat the signature Louisiana Creole dish,a rice-based concoction that minglesFrench, Spanish and Caribbean influ-ences with hot peppers, sweet onions,shrimp and other staples of the

American South, is a close cousin ofpaella, the Valencian specialty. That’sthe idea, I suppose, that Jambalaya is amelding of cuisines and cultures. Butwith dishes like Pure de Garbanzos conChorizo (hummus with spicy sausages,LE 28) and the Hamburguesa de Paella(a “Paella Burger” of chicken, chorizoand shrimp, LE 65), Jambalaya takestraditional dishes from southern Europeand North America well outside of theircomfort zones.The restaurant is nestled far enough

north of 26th of July Street in Zamalekalong Ahmed Heshmat Street to avoidthe discordant symphony of car horns.Its bright yellow façade stands outagainst the dusty, cracked pavement.Glass doors open onto a small coffeebar, with a staircase leading to the din-ing room. On a recent Monday evening,the restaurant was empty despite thecrowd smoking shisha at a nearby out-door café. Jambalaya tries hard to let us know

it’s Spanish. And the simple wood and

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SPANISH CONFUSION BY BRENDAN MEIGHAN

metal tables and chairs, earth tone patterned floor and muted lighting do feelvaguely European. Specials of the dayare listed casually on a chalkboardhanging on the wall, and a sign face-tiously warns patrons, in Spanish andEnglish, that Jambalaya does not haveWi-Fi and they should talk to eachother instead. “Keep calm and eattapas,” advises a poster near the door. The menu is a mish-mash of items

with some connection—in some casesa rather tenuous one—to Spain. Acase in point is the MexicanGuacamole (LE 32). It arrived quick-ly along with tortilla wedges (as itshould have, considering I was theonly patron in the restaurant). But thecrucial thing about guacamole, whichis basically mashed avocado withsome spices, is that it’s fresh. Beyondthe garnish of few fresh choppedtomatoes, this version was of a pallid,military-green hue that suggested ithad been prepared a few days ago.Again, guacamole doesn’t necessarilyneed a lot of embellishment, but boththe avocado and tortilla were notablefor their blandness, lacking the zestykick that a touch of onion, garlic, salt,

lemon and chilies should bring to thedish. The sample portions of red and white

Gazpacho (LE 20) were delivered inshot glasses. This was a cute touch, butsufficient to say that a shot glass isprobably not the optimal delivery vehi-cle for soup. While it wasn’t bad, thechilled vegetable concoction was onthe bland side compared to other ver-sions I’ve tasted of this classic summersoup. And at LE 20, Jambalaya’s twoshots of gazpacho weren’t really worththe trouble. When the waiter returned, I already

had my menu open with my fingerpointing to the Paella Marinera (LE79). Given the restaurant’s name, Ithought perhaps this would be the dishthey’d get just right. When it arrived,everything looked exactly as it should.Jumbo prawns perched atop a mountainof saffron-colored rice with peppersand peas, and mussels were neatlyarranged in their shells around the cir-cular edges of the cast iron dish. (Somebelieve “paella” originates from theArabic word “baqiyah,” meaning left-overs.) But looks aren’t everything. Itlacked the necessary punch, those

strong hints of onion and garlic andseafood, the essence of the dish, werenowhere to be found. Its mildly savory,vaguely greasy tang might haveimpressed me if it were themicrowaved leftovers of a home-cooked effort, but not as the flagshipdish of a restaurant attempting to spe-cialize in Spanish cuisine. It tastedmore like a midnight snack.Oddly enough, it was the Pasta con

Chorizo (LE 44) that finally delivered,despite my diminished appetite and thesomewhat odd notion of eating pasta ina Spanish restaurant. The simplicityhelped—I can personally attest to thefact that pasta is hard to screw up.Nevertheless, it featured generouschunks of the tasty, spicy-sweetsausage in a smooth tomato creamsauce that bound the elements of thedish together without overpoweringthem. Rejuvenated, and thirsty, I requested

a Fresca Limonada (LE 16) as well as aglass of non-alcoholic Sangria (LE 18).If there is one thing Egypt always getsright, it’s juice. The Limonada, a straw-berry lemonade, was neither too sweetnor too tart. The Sangria was a littleless exciting, but then again, grapejuice is not really a substitute for wine,which is traditionally the main ingredi-ent of sangria. Jambalaya had alsoadded a substantial amount of spice, themost prominent being cinnamon,which gave this summer drink a discor-dant, Christmas-ey flavor, like mulledwine. It wasn’t bad—it just wasn’t real-ly sangria. Which is perhaps the prob-lem with Jambalaya, which is a restau-rant in search of an identity. Its namecomes from Louisiana; it’s décor fromSpain, and its food from those placesplus Italy, Mexico and Egypt. Lackinga plan for how these disparate cuisinesare supposed to fit together, fusionbecomes confusion.

Dining Out


Jambalaya37A Ahmed Heshmat Street Zamalek01100220077Open daily 3 p.m. to midnight

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When it comes to food, Peter Reda Gergesbelieves in keeping things simple. Too manyyoung chefs, he believes, get lost trying fancy,experimental ingredients and techniques

they’ve read about on the Internet rather than simply follow-ing what they’ve learned in the kitchen. For his signature

Chinese dim sum, chicken and shrimp dumplings typical ofthe Cantonese finger food popular around the world, Gergesneeds little more than meat, wrappers and his bamboo steam-er. That was enough to snag the 21-year-old former sous chefat the Renaissance Cairo Mirage City Hotel the Best ChineseDish award at the Egyptian Chefs Association’s annualcooking competition last month. “I practiced this dim sum inmy kitchen for a long time, and went over the recipe in myhead many times,” he says. The cook-off, originally slated for last November but post-

poned due to political unrest, took place against the back-drop of the HACE Hotel Supplies Exhibition at the CairoInternational Conference Center in Nasr City. Over fourdays, some 200 culinary professionals and aspiring chefssquared off in singles and teams, in events from Vegetarianto Mediterranean to American Beef. A panel of judges fromrestaurants and chef’s associations around the globe award-ed LE 50,000 in prizes to the winners, which included suchcategories as Junior Chef of the Year and Female Chef of theYear. This year, all dishes were made from locally-sourcedingredients chosen by the chefs themselves. High-endrestaurant goers in Egypt, like others around the world, areincreasingly aware of the importance of sustainable, greencooking, says Chef’s Association Executive Director,Mirjam van IJssel. “In the rules this year, it has to beEgyptian cuisine, Egyptian flavor,” she says. “If they want todo pasta, they have to find local pasta; if it’s meat, it has tobe good quality local meat.” The Asian cooking event, in which competitors had 30

minutes to prepare a dish for two inspired by the cuisine ofthe Far East, is judged by a panel led by Australian chef Alan


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WHAT’S COOKING?BY MAT WOLF

Food

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Orreal, the food and beverages director at the ShanghaiDisney Resort and co-host of “The Big Break,” a realityshow that searches for undiscovered culinary talent. Thecontestant chefs worked side by side at compact cooking sta-tions enclosed by a tall plastic sneeze guard. Wearing a tall,white chef’s hat, Eman Mohamed of the JW Marriott HotelCairo (who would later place second in the best female chefcontest) furiously chopped basil and carrots hoping to addcolor and flavor to her Thai-inspired glass noodle dish,which was adorned with a single pink shrimp, while along-side her Mohamed Ezzat of the Renaissance Cairo MirageCity Hotel concocted a brown-sauced dish described as“Chinese Chicken.” Gerges, meanwhile, is enveloped in asteamy plume as he removes his finished dumplings fromthe bamboo steamer and plates them.Organizers say the competition aims to showcase high-

lights of the Egyptian culinary scene and promote the profes-sion to a younger generation. While the local hotel andrestaurant business has suffered seriously in the wake ofdeclining tourism in the last three years, Egyptians them-selves are eating out more than ever, according to the ECA.Not only have restaurants become increasingly fashionable inCairo and other urban centers, more women are working,leaving them with less time to cook at home. You don’t needto be a five-star chef to open a restaurant, says ECA PresidentMarkus Iten, but professional culinary training can reaplong-term benefits for restaurateurs. (The ECA runs trainingcenters in 6 October City and Luxor.) “Restaurants, home

delivery, takeaways—they’re great businesses,” he says,dragging on a cigarette. “And when you’re a good chef, youget more business—or you can charge a little bit more tomake a return on your investment.” While Iten praises the aspiring young chefs participating in

the competition, he laments what he calls the mediocre quali-ty of much Egyptian cuisine, which is often greasy and lacksfreshness. A lot of the problem, he believes, is that there’s notenough formal training. Most kitchens don’t teach techniquesand basic recipes, leaving novice cooks to more or less wingit. “They don’t get the right sequence of events to prepare adish correctly, and they don’t have the right temperature andweight ratios.” While it’s true that the tourism industry is cur-rently in a state of freefall, tourists will eventually trickle backto visit Egypt’s ruins and beaches, Iten says, and when theystay in five-star hotels, they’re going to expect food to match.“As soon as all the hotels are 100 percent booming, we haveto think about what our biggest weaknesses are.” Meanwhile, the judges are ready to sample the contestants’ cre-

ations. The smattering of family and friends watching from thebleachers applaud supportively when the judges make positivecomments about the food. Ezzat’s mystery poultry dish is dis-missed—unsurprisingly—for a lack of clarity on what it actuallyis. Slurping up Mohamed’s noodles, Orreal reflects that the dish isperhaps 80 percent Thai, 20 percent Vietnamese. The chef nodsattentively. But the highest praise is reserved for Gerges’ dim sum.Asked about his equipment, he shows off his bamboo steamer.It’s the only piece of equipment he uses for the dish, he explains,because it’s simple and traditional. His strategy has apparentlypaid off: As well as taking first place in the heat, Gerges won asilver medal in the overall Asian competition.

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American Chamber of Commerce in Egypt – Tel: (20-2) 3338-1050 – Fax: (20-2) 3338-1060 For more information about AmCham services and news, please visit www.amcham.org.eg or our US mirror site www.amcham-egypt.org

Chamber news

COMMITTEECHAIRS

(July 2013 to June 2014)

Agriculture and Food SecurityChair: Tarek Tawfik, International Company for AgriculturalProduction & ProcessingCo-Chairs: Tony Freiji, Wadi HoldingSeif ElDin ElSadek, Agrocorp For Agriculture Investment

Banking and FinanceChair: Hussein Abaza, Commercial International Bank (CIB)Co-Chair: Zeinab Hashim, National Bank of Egypt

Corporate Social Responsibility (CSR)Chair: Mohamed El Kalla, Cairo for Investment & DevelopmentCo-Chair: Shereen Shaheen, Pepsi-Cola Egypt

Customs and TaxationChair: Hassan M. Hegazi, Master Trading, SAECo-Chairs: Hossam NasrSherin Noureldin, Moore Stephens Egypt

EducationChair: Amr Ezzat Salama, The American University in CairoCo-Chair: Elizabeth Khalifa, Binational Fulbright Commission inEgypt

EnergyChair: Khaled Abu Bakr, TAQA ArabiaCo-Chairs: Basil El Baz, Carbon HoldingsOsama ElSaid, Masa ElectroThomas Thomason, Egyptian Refining Co.

Entrepreneurship and InnovationChair: Ahmed Bedeir, Dar El ShoroukCo-Chair: Nader Iskander, Egypt & Middle East Co. (EME)

Health & PharmaceuticalsChair: M. Maged El Menshawy, ManapharmaCo-Chairs: Ahmed Ezz El Din, Johnson & Johnson Medical EgyptMohamed S. Roushdy, Amoun Pharmaceutical Co., SAE

Human ResourcesChair: Somaya El Sherbini, Microsoft Egypt, LLCCo-Chair: Maisa Galal, General Motors Egypt, SAE

Industry & TradeCo-chairs: Mostafa El Halwagy, The Egyptian Company forInternational Touristic Projects (Americana)Omar El Derini, FAOM Consult/ Red WingSuresh Narayanan, Nestle Egypt

Information & Communications TechnologyChair: Bassel Mubarak, Oracle EgyptCo-Chair: Reem Asaad, Raya Holding

InsuranceChair: Alaa El-Zoheiry, Arab Misr Insurance Group|gigCo-Chair: Rabih Abdel Khalek, Pharaonic American Life InsuranceCompany (Metlife Alico)

International CooperationChair: Hanaa El Hilaly, Social Fund for DevelopmentCo-Chair: Magda Shahin, The American University in Cairo

Investment & Capital MarketChair: Alaa El Affifi, Citadel CapitalCo-Chair: Sherif A. El Akhdar, Beltone Private Equity

Legal AffairsChair: Ahmed Abou Ali, Hassouna & Abou Ali Law OfficesCo-Chairs: Emma El Meligi, Pepsi-Cola EgyptGirgis Sarwat Abd El Shahid, Sarwat A. Shahid Law Firm

MarketingChair: Hisham Ezz El Arab, Danone EgyptCo-Chairs: Tamer Hamed, Procter & Gamble Egypt, Ltd.Tamer Elaraby, Nielsen

Real Estate Chair: Mohamed Abdallah, Coldwell Banker Affiliates of Middle East &Greater Africa.Co-Chair: Hala Bassiouni, Egyptian Housing Finance Company.

Transport & LogisticsChair: Alfred Assil, Menarail Transport ConsultantsCo-Chairs: Amr Kabil, National Stevedoring GroupAmr Tantawy, DHL Express

Travel & TourismChair: Karim El Minabawy, Emeco TravelCo-Chairs: Cesare Rouchdy, Four Seasons Hotels and Resorts, EgyptRoland Bunge, Carlson Wagonlit Travel

Women in BusinessChair: Hala El Barkouky, Allied Business ConsultantsCo-Chairs: Ghada Hammouda, Citadel CapitalJailan Shindy, Shindy & Associates, Inc.

PRESIDENTAnis A. Aclimandos, Transcentury Associates

EXECUTIVE VICE PRESIDENTSCurt Ferguson, Middle East & North Africa Business Unit, The Coca-Cola Company

Sherif Kamel, School of Business, The AmericanUniversity in Cairo

VICE PRESIDENT, MEMBERSHIPDalia Wahba, CID Consulting

V ICE PRESIDENT, PROGRAMSAmr Talaat, IBM

VICE PRESIDENT, LEGAL AFFA IRSSaid Hanafi, Orascom Hotels & Development

TREASU RERSherif El Kilany, Allied Accountants-Ernst & Young

MEMBERS OF THE BOARDAhmed El Daly, Dale Carnegie Training Egypt (Westwood Group)

Amr Allam, Misr Sons Development - Hassan Allam SonsNevine Loutfy, Abu Dhabi Islamic BankOmar Mohanna, Suez Cement Group of CompaniesThomas Maher, Apache Egypt Companies

PAST PRESIDENTM. Gamal Moharam, MGM Financial & BankingConsultants

CHIE F EXECUTIVE O FFICERHisham A. Fahmy

BOARD OF GOVERNORS

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Joint mission to Washington

As part of continued efforts to maintain andfoster a robust Egypt-U.S. relationship,AmCham Egypt and the Egypt-U.S.Business Council from February 10 to14made a joint trip to Washington, D.C., wherethey met with members of Congress, the

executive branch, think tanks, media and the business commu-nity. The AmCham-EUSBC delegation included 25 leadingmembers of Egypt’s business community, representing U.S.companies operating in Egypt as well as Egyptian companiesengaged in U.S. trade, commerce and investment.

The mission came at a pivotal time in the history of the bilater-al relationship. With relations following the events of June 30 con-stantly changing, it was especially important for Egypt’s businessleaders to present their points of view and convey the realities onthe ground as well as overcome and transcend any differencesduring the rocky transition period.

More than 50 meetings were scheduled for the five-day trip.The delegation met with 28 prominent members of Congress,including Senator Roger Wicker (R-Mississippi), Senator JohnMcCain (R-Arizona), Senator Johnny Isakson (R-Georgia),Senator Ted Cruz (R-Texas), and Representative Ed Royce (R-California), as well as key staffers for members of the relevantSenate and House committees including Foreign Affairs, Waysand Means, Appropriations, Finance and Homeland Security.

The delegation met with top officials from the U.S. Departmentof Commerce, the treasury, U.S. trade representatives, theNational Security Council and USAID. They also spoke with rep-resentatives of several think tanks including the CarnegieEndowment for International Peace, the American SecurityProject, the Brookings Institution, Freedom House, the AtlanticCouncil, the Washington Institute for Near East Policy, the Centerfor Strategic and International Studies and the CongressionalResearch Service as well as New York Times columnist ThomasFriedman. Unfortunately, several meetings had to be cancelled onthe mission’s last day due to a winter blizzard hitting the EastCoast.

Members of the delegation discussed the importance of theU.S.-Egypt relationship and the role of Egypt’s private sector in

Mounir Abdel Nour, minister of industry, foreign trade & investment

Mohamed Tawfik, Egyptian ambassador to the United States

AmCham, Egypt-U.S. Business Council


Sen. Roger Wicker (R-Mississippi), deputy whip and member of the SenateArmed Services Committee

Sen. Johnny Isakson (R-Georgia), ranking member of the Subcommittee on International Trade,Customs, and Global Competitiveness of the Senate Finance Committee

Sen. John McCain (R-Arizona), member of the Senate Armed Services andForeign Relations Committees

Sen. Ted Cruz (R-Texas), member of the Senate Armed Services and Commerce Committees

Rep. Dana Rohrabacher (R-California), chairman of the Subcommittee on Europe, Eurasia,and Emerging Threats of the House Foreign Affairs Committee

Rep. Ed Royce (R-California), chairman of the House Foreign Affairs Committee


the transition, including firsthand accounts of what has takenplace, the current economic situation and how companies areaddressing the challenges facing the country and managing toremain profitable. The delegation also addressed ways in whichEgypt and the United States could leverage their relationship tocreate an environment conducive to economic development bylooking at policies both governments could enact to enhance bilat-eral trade and promote U.S. investment in Egypt.

Additionally, the delegation also talked about the interim gov-ernment’s efforts and policies aimed at building greater businessconfidence, including the injection of two stimulus packagesgeared toward encouraging investments in infrastructure projects,boosting the economy and creating jobs. Delegates pointed outthat the economy has seen some very positive signals for the firsttime since January 2011: Ratings agency Fitch recently upgradedEgypt’s economic outlook, and the stock market rose by 45 per-cent in the last quarter of 2013.

A common message among economists with whom the delega-tion met was that Egypt must renew its efforts at serious econom-ic reform. They added that aid from other Arab states was not sus-tainable in the long run and stressed the need to push for an agree-ment with the International Monetary Fund in the near future tolend more credibility to the reform process.

Delegates were also asked about the prospects for increasedeconomic stability following the current political transition. It wasstressed that security and stability would lead to prosperity, andmembers pointed out their endorsement of government measuresto control violence and fight terror. Other questions focused on thepolitical situation, the leading candidates in the upcoming presi-dential elections, parliamentary elections and security issues.These active dialogues were important and productive.

The delegation also met with Mohamed Tawfik, Egypt’sambassador to the United States, who briefed them on the generalsentiment toward Egypt in Washington as well as the embassy’sefforts to portray the Egyptian point of view of the events follow-ing June 30.

On Feb. 11, the U.S. Chamber of Commerce hosted a speciallunch in honor of Egyptian Minister of Trade and Industry MounirAbdel Nour. The event was attended by more than 250 guests,including U.S. government officials and company representativesworking in Egypt, members of the U.S. Egypt Business Council,the visiting AmCham Egypt-EUSBC delegation and the press.

In his speech, Abdel Nour outlined the challenges Egypt hasfaced over the past three years, ending with the current transitionphase, and conveyed a message of optimism about the politicaland economic road map set by the interim government. He said:“The constitution is the centerpiece of the road map; it is the solidfoundation that will bear the construction of the new Egypt. Itpaves the way for the restoration of order and security and for thenormalization of political life, sine qua non conditions to anyrevival of the economy.”

In order to jumpstart the economy, he added: “The governmentadopted an aggressive expansionary financial policy and approveda stimulus program, the first tranche of which amounts to some LE30 billion allocated to the execution of infrastructure projectsincluding housing, roads and bridges, grain silos, the completionof the third line of the Cairo metro, upgrading power stations,completing industrial land infrastructure in 35 industrial zonesand upgrading of parts of the Egyptian railway network.”

Rep. Tom Latham (R-Iowa), chairman of the Subcommittee on Transportation, Housing andUrban Development of the House Appropriations Committee

Rep. Adam Smith (D-Washington), ranking member of the House Armed Services Committee

Rep. David Price (D-North Carolina), ranking member of the Subcommitteeon Homeland Security of the House Appropriations Committee


Finally, Abdel Nour announced the launch of two major pro-jects that should attract the interest of potential investors. Thefirst concerns the development of the Suez Canal region with aview to creating a logistics and industrial services center aroundthe canal, and a strategic commercial hub at the crossroads ofthree continents. The second aims at developing an area situat-ed between the Nile Valley in Qena in Upper Egypt and the RedSea, between the ports of Safaga and Kosseir, dubbed theGolden Triangle for its surplus of mineral resources such as gold,phosphate and quartz.

A few members of the delegation next went to New York, wherethey met with the chairman of the Egyptian American EnterpriseFund, the president of the Business Council for InternationalUnderstanding and senior representatives from Citibank, HSBCand Caravel Management.

The visit came at a time when the country is on the road todemocracy. More than 20 million Egyptians voted in mid-Januaryin favor of the new constitution, the highest voter turnout in thehistory of Egypt’s 28 referendums. Presidential elections followedby parliamentary elections are scheduled for the next few months.

“During the past three years, Egypt’s private sector and U.S.companies operating in Egypt have continued to make profits, cre-ate jobs and grow. We seek partnerships with U.S. companies,both those who already have succeeded in Egypt as well as new-comers to the Egyptian market. This is the message we carry withus on this very important mission,” said Anis Aclimandos,AmCham president.

“With Egypt’s strategic location near markets in Asia, Africaand Europe, significant hydrocarbon resources, growing youngpopulation and a local market of 90 million consumers, business-es in Egypt are confident in the country's future and are movingforward; many are re-investing and trade is growing” said OmarMohanna, chairman of the Egypt-U.S. Business Council.

“AmCham Egypt and the Egypt-U.S. Business Council arefirst and foremost concerned with issues related to the promo-tion and expansion of private sector ties between Egypt and theUnited States. This is the first joint mission to the United Statesin the history of both organizations, coming at a very criticaltime in the history of Egypt-U.S. relations” said Hisham Fahmy,CEO of AmCham Egypt and member of the Egypt-U.S.Business Council.

As part of AmCham’s recently launched Egypt for Businesscommunications campaign aimed at strengthening the Egyptianbrand by reaching out to the U.S. and foreign media, severalpress outlets covered the mission. Many delegates were inter-viewed by prominent news agencies including Foreign Policy,the Huffington Post, the Washington Beacon, The WashingtonTrade Daily, McClatchy and National Public Radio. The keymessages projected through this outreach were that in spite ofthe turbulence Egypt has witnessed during the past three years,Egyptian and American businesses are still making a profit here.The private sector continues to see huge potential in the marketand is increasingly committed to Egypt’s transition. For U.S.companies, opportunities center on the fact that Egypt enjoysthe largest consumer market in the Middle East and is an idealhub for business expansion into the region as well as Africa.Egypt has a vibrant, youthful population: half of Egyptians areunder 25. Expanding entrepreneurship has proved critical forEgypt’s growth, both economic and social.

Paul W. Hamill, chief operating officer and director of external affairs,American Security Project

Dennis Ross, William Davidson distinguished fellow and counselor, Washington Institute for Near East Policy

Rep. Chuck Fleischmann (R-Tennessee), member of the Subcommittees on Energy andWater Development and Homeland Security of the House Appropriations Committee


Rep. Dutch Ruppersberger (D-Maryland), ranking member of the House Permanent SelectCommittee on Intelligence

Jeremy Sharp, specialist in Middle Eastern affairs,Congressional Research Service

Rep. Jason Smith (R-Missouri),member of the House Judiciary Committee

ANIS A. ACLIMANDOS, PRESIDENT, AMCHAM EGYPT AND

TRANSCENTURY ASSOCIATES

OMAR MOHANNA, CHAIRMAN, EUSBC AND SUEZ CEMENT

GROUP

AHMED ABOU ALI, MEMBER, EUSBC AND PARTNER, HASSOUNA

& ABOU ALI LAW OFFICES

AHMED EL DALY, MEMBER OF THE BOARD, AMCHAM EGYPT AND

PRESIDENT OF DALE CARNEGIE TRAINING EGYPT (WESTWOOD

GROUP)

ALAA HASHIM, MEMBER, EUSBC AND CONSULTANT FOR

ORGANIZATIONAL RESTRUCTURING

ALEX SHALABY, CHAIRMAN, EGYPTIAN COMPANY

FOR MOBILE SERVICES (MOBINIL)

AMR ALLAM, MEMBER OF THE BOARD, AMCHAM EGYPT AND

MANAGING DIRECTOR, MISR SONS DEVELOPMENT,HASSAN ALLAM SONS

AMR BADR, MEMBER, EUSBC AND MANAGING DIRECTOR,ABERCROMBIE & KENT EGYPT

BASIL EL-BAZ, MEMBER OF EUSBC AND CHAIRMAN

AND CEO, CARBON HOLDINGS

CURT FERGUSON, EXECUTIVE VICE PRESIDENT, AMCHAM EGYPT

AND PRESIDENT OF MIDDLE EAST & NORTH AFRICA BUSINESS UNIT,THE COCA-COLA COMPANY

DALIA WAHBA, VICE PRESIDENT MEMBERSHIP, AMCHAM EGYPT AND

MANAGING PARTNER AND DIRECTOR FOR COMMUNICATIONS & DEVEL-OPMENT, CID CONSULTING

DINA EL MOFTY, MEMBER, EUSBC AND EXECUTIVE DIRECTOR,INJAZ

HISHAM EL KHAZINDAR, MEMBER – EUSBC; ANDMANAGING DIRECTOR, CITADEL CAPITAL

HISHAM FAHMY, CEO, AMCHAM EGYPT AND MEMBER, EUSBC

MOUSTAFA EL GABALY, MEMBER, EUSBC AND MANAGING

DIRECTOR, ABU ZABAL FOR FERTILIZERS AND CHEMICALS

NEVINE LOUTFY, MEMBER OF THE BOARD, AMCHAM EGYPT AND

CEO AND MANAGING DIRECTOR, ABU DHABI ISLAMIC BANK

SAID HANAFI, VICE PRESIDENT LEGAL AFFAIRS, AMCHAM EGYPT

AND CHIEF OF STAFF AND GENERAL COUNSEL, ORASCOM HOTELS &DEVELOPMENT

SCOTT GALLO, STRATEGIC SECURITY AND OPERATIONS DIRECTOR,COCA-COLA EGYPT- ATLANTIC INDUSTRIES

SEIF EL SADEK, MEMBER, EUSBC AND CEO, AGROCORP FOR

AGRICULTURE INVESTMENT

SHERIF EL KILANY, TREASURER, AMCHAM EGYPT AND MANAGING

PARTNER, ALLIED FOR ACCOUNTING & AUDITING

TAREK ZAKARIA TAWFIK, MEMBER, EUSBC AND VICE CHAIRMAN

& MANAGING DIRECTOR, INTERNATIONAL COMPANY FOR

AGRICULTURAL PRODUCTION & PROCESSING

WALEED EL-ZORBA, MEMBER, EUSBC AND CEO,NILE HOLDING

SYLVIA MENASSA, ACTING EXECUTIVE DIRECTOR, AMCHAM EGYPT

DINA NAWAR, DIRECTOR OF PLANNING AND COMMUNICATIONS,AMCHAM EGYPT, AND EUSBC COORDINATOR

NADA ABDALLA, SENIOR COMMITTEE OFFICER,AMCHAM EGYPT

MISSION MEMBERS



Events

“In 1920, Egypt's population was 20 million. In 2014, it’s fivetimes that. Yet we still roughly live on the same 6 percent of theland,” said Ibrahim Mehleb, then minister of housing and urbandevelopment who late last month was appointed Egypt’s newprime minister. Addressing a Feb. 2 AmCham luncheon at theConrad Cairo Hotel, “This directly affects each and every one onthe street—rich and poor, living in a high-end neighborhood ora small village.”

This population boom, coupled with almost no horizontalgrowth, has resulted in a poor quality of life for manyEgyptians, with many denied access to basic necessities.Mehleb blamed these problems on a “lack of planning overthe years,” which is “why 94 percent of Egypt's land remainsundeveloped and empty.” Meanwhile, infrastructure inEgypt’s populated urban centers has been pushed to thelimit.

The situation has caused “chronic short-term problems,”for which the ministry has been working on finding sustain-able, permanent solutions. One strategy has been to finance“sunken projects” that were almost finished but then forsome reason forgotten. “But we can’t afford to only play therole of an ambulance,” he added, citing a CAPMAS projec-tion that Egypt’s population would reach 160 million by2052. “Forty years passes quickly, and it is therefore of crit-ical importance for us to start our planning today.”

The first of these planned projects is to develop infra-structure on the northwest coast of Egypt and extending 240kilometers inland. The second is to build highways from var-ious Upper Egypt governorates to the Red Sea. The idea isthat communities will start to form around these major road-ways, thereby spreading out the population by creating moredevelopment in Upper Egypt, which has the strategic advan-tage of being in proximity to commercial ports along the RedSea. The third project, which Mehleb called The GoldenTriangle, involves doing geological studies on an areaextending from Qena to Keft to Al-Qusayr that has beenfound to contain a high concentration of metals and miner-als. “Currently, there is a committee from different ministriesthat is planning for the project. Eventually, there will be adedicated authority to develop this triangle,” he said.

The Suez Canal Axis project is also in the cards withMehleb promising that first auctions will begin by June andconstruction will commence by next year. The project willinclude assembly plants, storage facilities, freight servicestations and even tourism and telecom projects to capitalize

on the high flow of international trade along the canal.These efforts will also help decentralize the governmentdecision-making process. “As developments east and weststart to grow, it will make more sense for each region to havedecision making powers,” he said.

The Ministry of Housing and Urban Development is alsoresponsible for providing housing for the poor. According toMehleb, the government fields new requests for 550,000apartments every year. Because supply hasn’t been able tokeep up with demand, the ministry needs to build 880,000units annually to fill the gap but currently can only supplyaround 200,000 per year. “The government can’t do thisalone,” said Mehleb. The ministry is also trying to accom-modate the homeless with very low-income projects. “Themain obstacle in any government-subsidized housing projectis that there is no law to ensure that those who are using thisprivilege are the ones who really need it,” he said.

Despite the huge scope of the plans, the minister saidthere is plenty of financing. “It is now just a problem of will.We have been asleep for three years, and getting the wheelgoing again is always difficult,” he said. For 2014, theMinistry of Housing and Urban Development has an invest-ment budget of LE 7 billion. “This is an unprecedented bud-get,” he said. “The most important thing going forward is toconfront problems and be transparent.”

HOUSING AND URBAN DEVELOPMENT

Building Egypt


Substantial investment is needed in Egypt’s burgeoning electric-ity sector, according to Hafez El Salmawy, Managing Director ofthe Egyptian Electric Utility and Consumer ProtectionRegulatory Agency. He was addressing a Jan. 21 meeting ofAmCham's Energy Committee entitled “Prospects of the PowerSector in Egypt by 2020”.

Salmawy provided an overview of the power sector and itsdevelopment. He explained that the first regulatory frameworkwas established in 1997 as part of a reform program based on a1995 Merrill Lynch study that recommended the corporatizationand unbundling of the electricity sector. EgyptERA was estab-lished following a presidential decree in 2001.

Egypt has only one electricity regulator, though Salmawystressed that efforts to establish one for oil and gas are under-way. Egyptian Electricity Holding Company and its affiliatedcompanies fill the role of electricity service-provider, whilethe job of EgyptERA is to regulate and supervise electricity-related activities; ensure the availability of supply; ensure faircompetition and transparency; and protect consumer interests.

He added that the agency monitors the balance between sup-ply and demand and identifies sources of imbalance.“Renewable energy is part of the security of supply and ofdiversifying the supply pool,” he said.

Energy projects are expected to exceed $50 billion by 2020.Around 6 percent of GDP will be allocated to the sector eachyear to respond to mounting power demand. With regard torecent calls for energy subsidy reform, Salmawy said there werethree main areas in which these are currently taking place: in theelectricity market, renewable energy development and taxes.

ENERGY

Powering the future

Egypt is becoming part of a phenomenon called the “globalsandwich,” or more specifically, the “Africa sandwich,” where-by countries with emerging market currencies and large fiscaland current account imbalances are coming under increasingpressure, David Cowan, Chief Economist for Africa at Citibank,explained at a Jan. 27 meeting of AmCham’s Banking andFinance Committee.

Cowan said that there was increasing interest in emergingmarkets as “the future of the world.” Africa’s outlook is alsostarting to change with the realization that economies can’t con-tinue along their current path. Although the Egyptian economycould witness a slight improvement, he said it would still lagbehind those of Morocco and Tunisia in the near future.

Remittances to Egypt from the Gulf have managed to supportincreasing consumption, he said. Egypt has been through a toughthree years economically, with the rate of inflation averagingaround 9 percent and ongoing foreign exchange restrictions andshortages continuing. Wage pressures have also been on the rise.

But it wasn’t all bad news. From 2012 onwards, the weakexchange rate, foreign currency shortages and reduction inimports all contributed to shrinking the current account deficit,

Cowan said. “On top of that, you have a huge transfer of fundscoming into the country, which has also improved the currentaccount situation,” he said. This flow of funds at the end of 2013has also helped to stabilize the Egyptian pound. According toCowan: “We are in a new period of temporary stability.”

Subsidy reform is a must, he added. “The idea that the statecan keep subsidizing all this is coming under question.” He alsostressed that Egypt's growing debt is a fundamental barrier toprogress, and resolving it is the only way out.

BANKING AND FINANCE

Mixed blessings


Advertorial

As part of its commitment to social responsibility, Scib Paints recently con-tributed to the renovation of the Children's Hospital in Abou El Rish andthe Aquarium Grotto Garden in Zamalek. Staff members painted an entirefloor of the hospital with creative designs to entertain the kids being treat-ed there and did a similar job in the surgery department, decorating treat-ment and recovery rooms with happy designs and positive messages. Scibalso helped revitalize the historic Aquarium Grotto Garden, which wasestablished in 1867 and opened to the public in 1902, by painting thelandmark attraction’s gate, fences, sidewalks and utility building.

SCIB PAINTS

The German automotive giant hosted a three-day safe driving event toraise awareness about road safety issues in Egypt and showcase innova-tions in Mercedes passenger vehicles. The event, which was attended byVIP customers, diplomats, fleet customers and members of the media,was held at the Egyptian Road Safety Training Center in Cairo and includ-ed both theoretical and practical sessions taught by professional drivinginstructors from Germany. Attendees then took the wheel and practicedobserving the road correctly and braking and steering techniques as wellas how to maximize fuel efficiency.

MERCEDES-BENZ

The real estate developer is launching its first development project, GrandHeights, in the western district of 6 October City catering to increasingdemand from young Egyptians for accommodation outside the congestedcity center but still close enough for daily urban outings. The 38 millionsquare meter project will include a commercial mall, sports facilities anda clubhouse as well as running and cycling tracks via the vast green areasand artificial lakes in the compound's Grand Park Zone.

KUWADICO

The pharmaceutical giant launched new products from top hair care brandTRESemmé at an event attended by actors such as Bushra and Mai Selimas well as renowned Egyptian hair stylists and salon owners. “We are cele-brating the launch of the TRESemmé hair care range in the Egyptian mar-ket after Unilever’s acquisition of U.S. company Alberto Culver. Through thisacquisition, TRESemmé products have joined our personal care productslist," said Shereen Abdel Moneim, head of the Personal Care MarketingSector of Unilever Mashreq. TRESemmé products are enriched with natur-al extracts and keratin to suit the needs of all hair types.

UNILEVER


As the official sponsor for the FIFA 2014 World Cup in Brazil, CIB haslaunched a new CIB Visa FIFA credit card that offers cardholders a chanceto win flight tickets, free accommodation and tickets to the match.Cardholders can increase their odds of winning by having their namesentered two more times in the draw each time the card is used for pur-chases over LE 100 inside or outside Egypt. The receipt for every such pur-chases will have one letter of the word BRAZIL printed on them, and card-holders who collects all six letters will automatically win a four-day trip toBrazil to see the World Cup live.

COMMERCIAL INTERNATIONAL BANK

The stylish high-end clothing giant is celebrating its 2014 spring/summercollection by opening its latest branch in Cairo Festival City. The new col-lection’s style and colors are inspired by the sea; with sandy hues likekhaki, stone and beige combined with ink blues, exuberant purples,romantic corals and shades of copper as well as natural textures includingsilk, suede, leather, linen and cotton. The collection includes shirts,knitwear, light jackets and accessories.

MASSIMO DUTTI

The Samsung Galaxy S5 is designed for what matters most to consumers,including a fingerprint locking screen and Ultra Power Saving Mode thatturns the display to black and white and stops unnecessary features. Alsowater and dust resistant, it features a built-in heart rate sensor and othernew health apps that are integrated with the Galaxy Gear 2 and Gear Fitwearable devices. The camera is now 16 mega pixels (up from 13 megapixels). The phone also comes with a choice of four leather-effect perfo-rated battery covers and 4G connectivity that works with Wi-Fi to boostonline download speed.

SAMSUNG

Kempinski’s Career Day 2014 will be held at Kempinski Hotel AirportMunich on March 1. The event is a chance for newcomers, students andprofessionals hoping to work at Kempinski hotels to get one-on-one jobinterviews with top Kempinski executives from around the world. Over 70hotel general managers will be on hand as well as board members andover 20 senior executives. Attendees will be limited to 1,000 candidatesselected on a first-come, first-served basis. “We are continuously lookingfor new talent for our hotels worldwide,” said Vice President for TalentDevelopment Michel Gehrig.

KEMPINSKI


Member News

For any change to contact information, please contact theMembership Services Department at the Chamber’s OfficeTel: (20-2) 3338-1050, ext. 0016 – Fax: (20-2) 3338-1060

E-mail: [email protected]

Personnel changes at member companiesYasser El FarnawaniChairman and Managing Director Misr Pioneer Seed Co., SAE

Murat OzulkuNEA BU General ManagerEmerging Markets Payments Africa S.A.E. (EMPA)

Mark FentonGeneral ManagerDana Gas Egypt

Susanne TewfikHead of Sales EgyptLufthansa German Airlines

Neveen MohamedSenior Sales SpecialistAmideast Egypt

Susan SilveusRegional Director, MiddleEast & North Africa -Institute of International Education (IIE)

Category: GeneralSector: Agriculture

Category: MultinationalSector: Financial Sector

Category: MultinationalSector: Transportation

Category: MultinationalSector: Transportation

Category: AffiliateSector: Academic/Educational/Research &

Development (R&D)

Category: Not-for-ProfitSector: Academic/Educational/Research &

Development (R&D)

Changes to titlesGeneral Motors Egypt, SAEMaisa GalalHR Director Egypt and North Africa

Global BrandsHisham SaidCEO

House of DonutsAhmed NassierPresident

Changes to company detailsHouse of DonutsAddress: 6 Al Nil Al Abyad Street Lebanon SquarePhone: (20-2) 3302-2738/ 9Fax: 33039581

Bunge Egypt, SAEAddress: 7 Road 218 Degla MaadiPhone: (20-2) 2519-0539Fax: 25169581

Category: AffiliateSector: Automotive

Category: GeneralSector: Information Technology

Category: GeneralSector: Food & Beverages

Address: Obour City, Industrial Zone, Plot 5 Block 13035- PO. Box 111Tel: (20-2) 4610-0101/2/3/4 – Hot Line (Egypt only) 16010Fax: (20-2) 46102626Website: www.kandil.com

Kandil Steel is focused on the continuous development of finished and semi-finished steel products tailored tothe required needs. Kandil is a group of industrial companies that is counted as one of the largest producers ofcold rolled and galvanized flat steel products in North Africa and the Middle East. Our production linesinclude: pickling, cold rolling, annealing, galvanizing, color coating and manufacturing steel sheets.Main Sector: Building Materials • Sub-Sector: 17.2 • Membership Type: General

Kandil Steel

AmrKandilCEO

CORRECTIONS


EMP

Electronic payment and card processing company Emerging Markets Payments hon-ored outgoing Bank Processing Division CEO Hoda Shoukry for leading the compa-ny to “outstanding success and achievements” at a Jan. 22 party at the JW MarriottHotel Cairo. Her replacement, Murat Ozulku, formerly of Citibank, was also on handfor the festivities. The party was attended by high-profile bankers as well as EMP part-ners from Egypt and the region.

ABB

Global power and automation technology company ABB has been selected to provide the full range of electrical services forthe Grand Egyptian Museum, set to be the world.s largest archaeological museum when it is completed in 2015. ABB heating,ventilation and air conditioning components will also be installed in the Giza facility, which is expected to house over 100,000ancient Egyptian artifacts and art pieces including King Tutankhamen.s iconic golden mask.

ORASCOM AND EZZ ELARAB AUTOMOTIVEGROUP

Orascom Development and Ezz Elarab Automotive Group, the sole Egyptian agent forBudget Rent a Car, have launched a new operating company, Budget El Gouna, to pro-vide El Gouna with affordable transport services. This is the first time that Budget.s com-plete suite of taxis, car rentals, limousines and shuttle services will be available in anEgyptian resort town. The new service will be available beginning this month.

SHELL

Shell has announced its return to the Féderation Internationale de l.Automobile WorldRally Championship after becoming a title partner of the Hyundai Shell World RallyTeam. Hyundai.s all-new i20 vehicle will use Shell Helix Ultra motor oil and featureShell Helix branding at all WRC events. The new partnership debuted at the Monte CarloRally in January and was in effect at the Rally Sweden last month.


Announcements

Construction Projects Local AdministrationAuthorities

IndustryTransport

Eight tenders for the construction of 1,000 housing units in Hurghada for completionin 12 months each. Bidders need be registered at the Contractors Federation withvalid membership and classified for the required works at a suitable grade.

Two tenders for the supply of (a) spare parts for Hitach traction engines, also (b) otherelectric parts for the (old) metro. Ref. 30 & 32/ 2013/ 2014.

Red Sea Governorate, the Housing Directorate,Hurghada

Cairo Public Transport Authority, The Local ContractsDepartment

235,000 LE1,000 LE

40,000 & 4,847 $300 LE

March 25, 2014

March 10, 2014

www.amcham.org.eg/TASFor further information, contact the Business Information Center at AmCham Egypt

Tel: (20-2) 3338-1050 – Direct: (20-2) 3761-9641 • Fax: (20-2) 3338-9896 • E-mail: [email protected]: www.amcham.org.eg • US Website: www.amcham-egypt.org

Description Client Bid bondSpecs feesDeadline Sectors

Beneficiary Sectors Generating Sectors

For more information about these jobs and others, visit: www.amcham.org.eg/recruitment – e-mail: [email protected], Tel: (20-2) 333 88 220 Ext. 1513 - 1514 Fax: (20-2) 333 73 779

Jobs

Top Tenders

AMCHAM RECRUITMENT CENTER

TOP TENDERS FROM TAS

Code Vacancies Company Name77098 Fire Life & Safety Manager InterContinental & Holiday Inn Cairo Citystars Hotels77061 Marketing Manager SADKO - Group77023 Trucking Manager DAMCO76824 Administrative Manager Dakahlia Poultry76678 Chemical Manager EVA Pharma / EVA Cosmetics76629 Information Technology Manager Hindawi Publishing Corporation

U.S. Exhibitions

*Please refer to the Commercial Service at the US Embassy for any updates on the exhibitions.

Listings are now available on our website:www.amcham.org.egExhibitions related to the following sectors are scheduled for the upcoming months

Sector Show Name Website Contact Person Tel #

March

Construction CONEXPO www.conexpoconagg.com Hend El Sineity 2797-3482

Health/Beauty Natural Products Expo West/Engredea 2014 www.expowest.com Rania Mekhail 2797-3487

Consumer Goods International Home + HousewareShow

www.housewares.org Rania Mekhail 2797-3487

April

Environmental Waste Expo 2013 www.wasteexpo.com Rania Mekhail 2797-3487

ICT-Broadcasting The 2014 NAB Show www.nabshow.com Hend El Sineity 2797-3482

For more information about these exhibitions, please contact: The Commercial Service at the US EmbassyTel: (20-2) 2797-2330/ 40 - E-mail: [email protected]

Emaar Misr for Development is pleased to offer 20% discounton food & Non- alcoholic beverages only at the below venues

at the club house Uptown Cairo:• Oliveto restaurant "Serving Italian food"

• Baslico restaurant "Serving International food"In addition to: 10% discount on Business meetings and social/private events

(Excluding weddings and Engagement parties)VIP Treatment “Hot towel, welcome drink” - Usage of the Cigar Lounge anytime.

Free Wi-Fi - Free parking.*Reservation has to be in advance for the Special Occasions"

***Discounts will be granted for AmCham members upon presenting theirAmCham 2014 membership card***

For more information, please contact:- The Club House Guest Services: Telephone: (202) 2503- 2133 -Mobile: (20)12-835-57000 - Email: [email protected] Ahmed Maher: Telephone: (202) 2503-2082 Mobile: (20)10-920-11180 Email: [email protected]

Please visit AmCham’s Cyberlink on http://www.amcham.org.eg/cyberlinkfor more information on all AmCham benefits

Offer is valid until March 1, 2015

THE CLUB HOUSE - UPTOWN CAIROEMAAR MISR FOR DEVELOPMENT

The BUSINESS MONTHLY Classifieds section is open exclusively to AmCham member companies. Text ads are £E 150 for up to 30 words, £E 5 per additional word. Abbreviations, phone numbers and e-mail addresses count as one word. Display ads are£E 100 per cm in height, per column (max. 20cm in combined total height). Discounts are offered for regular advertisers and repeat bookings.Insertion orders, payment and ad content must be received by the 15th of the month preceding publication. All classified ads subject to editorial approval. For moreinformation, or to place a classified ad, contact Amany Kassem at (20-2) 3338-9890, fax (20-2) 3338-0850, e-mail: [email protected]

Benefits

Is pleased to extend the exclusive tailored discount to AmCham members onBMW various car models, Services and insurance packages:

1- 2% discount on BMW line sticker prices.2- Original car carpet & Key chain as a gift on your car.

3- BMW insurance with different packages, services and special rates: - 4.25% including taxes,stamps and issuing fees - Road assistance 24/7

4- Premium BMW cars to be traded with the best market price.5- Several bank finance programs on all BMW cars with a downpayment to start from

25% of the car value.


Contact information:Rafik George – Fleet Sales Executive - Mobile: (20) 10-611-10030 Email: rafik.george@retail .bmw-eg.comAhmed El Touny– Fleet Sales Executive - Mobile: (20) 10-610-10002 Email: [email protected] Osama – Fleet Senior Supervisor - Mobile: (20)10-016-66316 Email: haitham.osama@retail .bmw-eg.com


This offer is valid until December 30, 2014

BAVARIAN AUTO GROUP (BAG)

Stay up to date with the Cairo Review’s special reports on subjects such as the ArabSpring, Science and Innovation Policy, the Iran Dilemma, the Future of the City, China,

South Africa, Brazil, and more.Subscribe to the Cairo Review of Global Affairs with a special offer to AmCham mem-

bers: 200 L.E for one year (4 issues)


For more information, please contact:Dahlia Dowler, Cairo Review administration: (202) 2615-3468Or, send a check in the amount of 200 LE, payable to “Al-Ahram SubscriptionsDepartment,” mailed to the following address: Al-Ahram SubscriptionsDepartment, Al-Galaa Street, P.O. Box 11511, Cairo, Egypt


This offer is valid until December 31, 2014

THE AMERICAN UNIVERSITY IN CAIROTHE CAIRO REVIEW



Al Shorouk, Feb. 7

Media Lite is a satirical review of items published in the local and international press. All opinions and allegations made in them belong solely to theoriginal publications and no attempt has been made to ascertain their veracity.

BLIND LUCKPolice on an overnight stakeout in anapartment building in Obour City had astroke of good fortune when a gang ofthieves they’d been trailing for months lit-erally stumbled into their laps. The four-man gang had walked away with someLE 1 million worth of residents’ propertyfrom nine different apartments in theneighborhood over the last six months.On the night in question, they had plot-ted to break into the flat next door to thedetectives’ lair, but a sudden power cutsent them astray. The surprised cops—who were busy looking out the windowsurveilling the building across thestreet—placed the bewildered burglarsunder arrest.

Al Shorouk, Feb. 7

DAZED AND CONFUSEDDrugs and driving don’t mix, as somehapless dealers recently learned thehard way. Upon belatedly realizing on

the way to an illicit sale that there was apolice checkpoint up ahead, they decid-ed to quickly dispose of the evidence bysmoking it. Unfortunately, their drivingwas so erratic by the time they reachedthe checkpoint that police immediatelystopped and searched the vehicle. Itturned out that in their impaired state,these criminal masterminds had forgottenabout some 12 kilograms of product hid-den under the driver’s seat.

Al Shorouk, Feb. 3

CAN’T BUY ME LOVEThe Beatles may have sung it half acentury ago, but the message appar-ently still hasn’t gotten through to partsof Cairo. On Feb. 14, dozens of locallonely hearts flocked to an accessoriesshop in Giza, where an enterprisingvendor was selling a subtly-named fra-grance called Love Potion, guaranteedto jump start the heart of the objectof your affection within 24 hours. The

following day, the local police stationwas flooded with frustrated would-becasanovas complaining that the prod-uct was a dud. But by that time Mr.Cupid had already shut down his storeand fled—no doubt until nextValentine’s Day.

Al Shorouk, Feb. 15

BAD “CAR”MAA gang of carjackers got more than theybargained for recently after they held upan expensive German-made car on theAgriculture Road and sped off in thevehicle. Upon reaching their hideout,they discovered a corpse in the trunk.Apparently, this was not their luckyweek: The next day, they were arrestedas they tried to dump the car and itsmacabre cargo. A subsequent investiga-tion revealed that the man they hadcarjacked had stolen the vehicle fromsomeone else.

various media, Feb. 27

Media Lite

A Glance At The Press

“I’d like to nominate theminister of education for

president because he postponed school.”

Confidence.. Distinction

cover - amcham.org.eg · heal thyself 8 i business monthly – february 2014 editor’s note...

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