Biswajit Choudhury | 22 Mar, 2013
India should look at Egypt as its gateway to Africa, Osama
Saleh, Egypt's Minister of Investment, said in New Delhi.
In an interview with IANS on the sidelines of the first India-Egypt Economic
Forum on Wednesday, Saleh said : " We are proposing that India consider
Egypt as the gateway to the African continent for deepening and increasing the
benefits of an old relationship."
The inauguration of an India-Egypt Business Council organised by premier Indian
industry bodies - FICCI, CII and Assocham - is a major step in this direction.
Saleh is here as part of Egypt's General Authority for Investment and Free
Zones mission visiting India with the country's first democratically elected
President Mohamed Morsi.
The Egyptian minister is promoting his country as an investment destination at
a time when India looks to make a quantum jump in its economic engagement with
the continent, particularly with north and western Africa, as well as achieving
the full potential of its business relations with Egypt.
"The levels of foreign direct investment (FDI) in Egypt has dropped from
25 percent to nine percent, especially in this period when the country is going
through a political transition. Our aim is for FDI to pick up to levels of
around 20 percent," said Saleh.
Saleh said although the new government installed in August 2012 had inherited
problems from the past, it has put in place a programme of economic reforms
focussed on attracting investments.
"Egypt is a very attractive FDI destination on the strength of its human
resources, as also as a market. The only thing that has been affected in recent
times is the country's tourism industry, which is a major source of our
revenues," said Saleh.
He said foreign investors interested in Egypt need not have any fears on
account of the political transition.
"Egypt is an old country with old institutions that are functioning in
continuity through this period of transition. So investors need have no fear
about things becoming unstable or business being affected," Saleh said.
India and Egypt Tuesday signed seven agreements, including one for cooperation
in micro and small enterprises, to facilitate sharing of information, meetings
between enterprises, technology transfers and to provide consultation services
to enhance the abilities of business enterprises of the two countries.
Both sides also agreed to upgrade a vocational training centre at Shourba El
Kheima, Cairo, under which India's National Small Industries Corporation will
provide the technological upgradation required in the area of spinning,
weaving, knitting and dyeing technology.
Another agreement provides for setting up a centre of excellence in Information
Technology at Cairo's Al Azhar University that will see India provide the human
resources as well as the hardware and software to set up a centre for the
training of up to 500 students per year.
"India is interested in exporting wheat to Egypt, while we are studying
the possibility of export of fertiliser from Egypt to India," Saleh said.
The Confederation of Indian Industry (CII) has recently launched the India
Business Forum (IBF) in Egypt with the aim to promote 'Brand India' and support
Indian business in the country.
"What is happening in Egypt now is a power game; a debate is going on in
the political sphere for taking control of power. It happens everywhere. It
will not disrupt economic life and business," Saleh told IANS.
India is now Egypt's 7th largest trading partner. Bilateral trade has grown
from $2.5 billion in 2006-07 to $4.3 billion in 2011-12. India's crude and LNG
imports from Egypt account for almost half the total value of bilateral trade.
Around 50 Indian companies, including the Sanmar group, Alexandria Carbon Black
and Dabur, are operating in Egypt with a combined investment of roughly $2.5
billion.