by Ahmed Kamal
Last week, Indian Minister of External Affairs Sushma Swaraj visited Egypt for two days to boost trade and investment relations between the two nations, as well as to play a greater role in regional security.
“The Indian Minister was keen to make use of economic and logistical opportunities in Egypt and enhance cooperation in information technology and pharmaceuticals,” the Egyptian president’s spokesperson stated to the media.
“We are waiting for the issuing of the master plan of the Suez Canal region to start Indian projects in different sectors, especially since most of our company is in Port Said, Ismailia, and Suez,” former Indian Ambassador Navdeep Suri told the Middle East Observer.
Suri added that Indian investment in Egypt is estimated at $3 billion, affecting 35,000 Egyptian workers.
“Our investors have a special interest in the Egyptian market, but there are some challenges that face us here, such as obtaining land, energy, and permits, and we have a problem with continuous protests by the workers in the Indian factories.”
Egypt’s Ambassador to India Hatem Tageldin told Indian news service IANS that “there are over 50 Indian companies in the pharmaceutical, IT, infrastructure, energy and auto component sectors that are exploring the Egyptian market with the intention of either exporting from India or producing in Egypt.”
Tageldin added that India is considered Egypt’s sixth largest trading partner, with trade in the last financial year valued at $4.76 billion.
“A lot of Indian companies currently invest in the Suez Canal region, like the Sanmar Group specialised in chemicals with $1 billion investments, while the Nile Egypt company is investing $6 million, and the Galaxy Surfactants Ltd company investing $45 million,” Suri said.
Indian interest in the Suez Canal region is due to the canal significantly reducing the travel distance for ships travelling from the Indian Ocean to Europe.
Egypt’s planned developments for the area surrounding the canal also pose opportunities for foreign investors, and the government has promised to provide incentives to countries with intentions of establishing industrial zones in the region.
Last may, a delegation of 27 Indian car manufacturers and merchants visited Egypt to study establishing industrial and commercial partnerships with Egyptian manufacturing companies.
In a statement, ACMA, the organisation leading the delegation, said that in 2013 Egypt was Africa’s third largest car producer, following South Africa and Morocco. The numbers indicate that car sales in Egypt have achieved an annual increase of 56 per cent by the end of June 2014.
The Egyptian automotive industry imported 60 per cent of its components or the equivalent of $900m worth of spare parts and feeder industries in 2013. Imports from India have accounted for about 8 per cent of these imports, or approximately $70m. The Egyptian automotive market is expected to grow by another 50 per cent by the year 2020.
ACMA also pointed out that Indian companies seek to work in cooperation with Egyptian companies to target more trade and investment opportunities not only in the Egyptian market, but also in eastern and northern Africa, making Egypt India’s gateway into these markets.
Indian companies believe that the Egyptian market represents great cooperation opportunities in light of the elements of power enjoyed by the Egyptian automotive industry, as well as the expected industry growth over the next five years.
Egypt’s main exports to India include crude oil and petroleum products, raw cotton and other raw materials and chemicals. India’s main exports to Egypt include meat, fabrics, machinery, pharmaceuticals and traditional exports including tea and tobacco.
