More Trade With Canada

An Egyptian delegation is preparing to embark on a mission to Canada with the aim of strengthening ties between the two countries.

Moataz Raslan, chair of the Canada Egypt Business Council (CEBC), told Al-Ahram Weekly this week that the council aims to increase trade exchange between the two countries by 10 per cent during 2022.

The value of trade between the two countries currently stands at around $1 billion, tipping in favour of Canada. A trade mission representing the CEBC will soon be leaving for Canada with a view to increasing Egyptian-Canadian trade.

During the visit, there will be meetings to discuss opportunities for joint cooperation in a number of sectors, including petrochemicals, pharmaceuticals, and infrastructure, Raslan said. The two sides will also review developments in Egyptian infrastructure and their impact on the rate of investment.

Raslan said that the delegation, which includes representatives of the Suez Canal Economic Zone and several businessmen and MPs, will discuss new cooperation opportunities, increasing investments between the two countries in a number of sectors and attracting investors from the sizeable Egyptian community in Canada.

About 75,000 Egyptians live in Canada. “The Egyptian community in Canada is one of the biggest communities of Egyptians abroad. They are a valuable asset,” Raslan said.

He said that mining and exploration were main areas of Canadian investment in Egypt. Egyptian imports from Canada include equipment, machinery, petrochemicals, and inputs for iron production. Egypt exports gold, agricultural products, textiles and furniture to Canada, he added.

“The council has solved many obstacles to make doing businesses between the two countries easier,” Raslan said. “The CEBC works to present all available opportunities for Canadian companies to invest in the Egyptian market and emphasises the competitive advantages that Egypt possesses.”

He added that among the competitive advantages that Egypt enjoys are cheap labour and a large population that makes Egypt a huge consumer market, as well as its geographical location as a gateway to Africa and its multiple free-trade agreements.

Raslan pointed to the importance of stimulating and encouraging foreign investment, especially as it adds to national hard currency reserves and links Egyptian products to foreign markets, maximising export opportunities.

“We are doubling our efforts to attract more Canadian companies to the Egyptian market,” Raslan said. Canadian investments in Egypt currently stand at around $1.5 billion.

He expressed the hope that the government would contribute more to the business councils to attract new investments by providing more incentives packages, including exemptions on industrial land, facilitating access, and quickly finalising procedures to implement projects faster.

Raslan called for quick action to reduce bureaucracy and introduce new methods to attract foreign direct investment. He stressed that the government’s one-stop shop on foreign investment should help to facilitate acquiring licenses for investors, manufacturers, and utilities, as well as the payment of taxes, so that investors deal with a single window instead of multiple entities.

“There is a growing interest in doing business in Egypt from the Canadian side, as the business and investment environment has drastically changed over the last few years,” Raslan stressed.

He added that the political leadership in Egypt has helped in supporting a strong economic position that has garnered praise from international financial institutions like the World Bank.

“The effects of the coronavirus pandemic and the war in Ukraine have been significant, including a steep rise in inflation and a lack of liquidity and leading to an economic slowdown. But we are trying to move on and look for new opportunities to do business and attract new investments,” Raslan said.

“We will work on increasing trade exchange between Egypt and Canada by 10 per cent, and it will be a great achievement if this happens during 2022,” he concluded.