In the wake of ICIEC signing an important Memorandum of Understanding (MoU) with the Arab Republic of Egypt and the Federation of Egyptian Industries (FEI) to facilitate cooperation and promote trade and investment opportunities for Egyptian industries, it is the right time to profile Eng. Mohamed Zaki El Sewedy, Chairman of the FEI, to discuss his vision and aspirations for Egyptian companies and the opportunities raised in the partnership with ICIEC.
Many congratulations to the Federation of Egyptian Industries (FEI), celebrating its centenary in 2022. Please tell us more about your role at FEI, the importance of the organization in lifting Egyptian companies’ trade and investment domestically and internationally, and its advocacy agenda.
Mohamed Zaki El Sewedy: As the Chairman of the Federation of Egyptian Industries (FEI), with FEI board members and the chairpersons of the 19 industrial sectoral chambers, we advocate for manufacturers’ member interests locally and globally. This year, FEI is celebrating its century as one of the oldest business organizations in the region.
At the end of 2021, FEI proudly ran its first election under the new law which regulates FEI that ensures fair representation of SMEs on the boards of each industrial chamber. That means SMEs are now well represented and in all sectors’ decision-making positions. We are working hard to push forward the industrial sectors of the Egyptian economy by advocating growth and prosperity.
FEI has many responsibilities towards its members. These include strengthening cooperation and alliances with international organizations and institutions. They also support entrepreneurship and initiatives for start-ups and business development needs via our Business Development Service Centre. We help minimize administrative and regulatory burdens and promote economic development, cleaner production, and energy-efficient technologies. On the educational side, we provide access to essential knowledge and information, advice and consultancy services, and extensive training and capacity-building opportunities. All this is done while promoting corporate social responsibility, adherence to UN Sustainable Development Goals (SDGs), and showcasing best practices in different industrial sectors.
On an international level, FEI represents the voice of Egyptian employers with International Labour Organization (ILO) structures as per our membership of the International Organization of Employers (IOE). FEI also serves its members through its strategic relationships with similar business associations in Germany, Italy, KSA, Emirates, Malaysia, India, etc.
Also, being a founding member or member of several other international business platforms, such as COMESA Business Council, Global Business Coalition, BUSINESSMED, ANIMA, etc., provides another domain for strategic international alliances.
As a tool for evidence-based advocacy, FEI has developed a reform agenda for fostering industrial investment and attracting foreign direct investment (FDI).
FEI has given exceptional care and attention to the development of human resources and the TVET system in Egypt [TVET is Technical and Vocational Education and Training] in partnership with relevant ministries.
What are the main hurdles facing Egyptian manufacturers in international trade and investment for the coming century? How are they being overcome?
Mohamed Zaki El Sewedy: FEI is working closely with the government to ease trade regulations through automation and eradicate red tape.
We must admit that the major hurdle facing Egyptian manufacturers in international trade and investment is a lack of information. A proper market intelligence system is needed to help raise knowledge about potential opportunities in existing and new markets.
Another challenge is financial facilities, especially for risky markets. It goes without saying that credit guarantees and investment guarantees are fundamental, particularly in risky markets and particularly for SMEs.
Logistics is another hurdle. Thinking about new solutions to overcome this hurdle is essential. Maybe that could include facilitating logistical solutions in some targeted markets, especially in Africa, such as availing warehouses and outlets to introduce Egyptian products to new markets.
Egypt has an exciting Vision 2030 agenda – particularly concerning climate action. How is FEI assisting in this drive?
Mohamed Zaki El Sewedy: FEI realized the importance of raising environmental awareness among Egyptian manufacturers long ago. We established the Environmental Compliance Office (ECO) under the umbrella of FEI as far back as 2001. ECO provides consultancy services to the industry sector in environmental compatibility, environmental management systems, energy conservation, and renewable energy to improve the efficiency of national industry. It also introduces the principles and technology of cleaner production, strengthens local competencies and capabilities, and supports competitiveness.
You may be interested to know that FEI is playing a crucial cooperative role in setting standards with the Egyptian Organization for Standardization in all sectors, including energy, lighting, and home appliances as subsectors, which we have recommended to enhance and develop these subsectors into using less polluting and lower energy consuming products (for example, for air conditioning and fridges).
To cope with the national climate/environmental strategy of 2030, which requires converting 25-30% into renewable energy, and by 2050, 50% into renewable energy, FEI has started many programmes with development partners (such as UNIDO and the EU) to raise the awareness of using renewable energy by converting to power-saving engines and also increasing the awareness of the Green Economy Initiative and the Green Deal Initiative, among others.
What are your key ambitions for the Framework Cooperation on Trade and Investment Partnership with ICIEC for Egyptian importers and exporters, particularly in terms of increasing trade into Africa?
Mohamed Zaki El Sewedy: First, we need to work on developing a consolidated action plan for this cooperation, with continuous evaluation. This plan should include awareness sessions, mitigation missions to potential markets, etc.
It is essential to develop market studies – including the potential markets’ needs, risks, challenges, and opportunities. If we are talking about increasing trade with Africa, Egyptian enterprises need a clear framework for the insurance of trade and investments.
Together we can create a special programme for Egyptian manufacturers to encourage them to start or increase their imports/exports from/to Africa with risk guarantees or insurance. This could include special programmes to facilitate logistics, especially for warehouses, sea freight, etc. A database of trusted banks and financial institutions in Africa is very much needed.
These are undoubtedly challenging times regarding international supply chain dislocations, inflationary pressures and climate necessities. What constitutes success for Egyptian companies on a five-year view?
Mohamed Zaki El Sewedy: Many factors would constitute success for Egyptian companies. First, Egypt enjoys many other trade agreements that facilitate trade and investment with different regions besides the competitive advantage of diversified sectors and products.
The efforts exerted by the government in developing a national strategy for governance to enhance the business environment in various ways are all critical. These include: ratifying laws and regulations, building free [trade] zones, economic zones to encourage exports, giving investment incentives, giving priority to local industries to obtain and implement tenders in national mega projects tenders, etc.
The latest circumstances of the COVID-19 Pandemic and the recent geopolitical crisis have resulted in many changes that have reflected globally on enterprises. We have noticed many reshoring and offshoring of global investments near their original markets, which has positively reflected on trade and investment in Egypt.
We are happy to develop our cooperation between FEI and ICIEC further to work on enhancing the way Egyptian companies do business across borders. The Framework Cooperation on Trade and Investment agreement [signed on June 3] aims to facilitate cooperation and promote trade and investment opportunities for Egyptian industries. This includes professional representation and advocacy of Egyptian industries’ interests locally and globally, as well as training on the importance of risk mitigation and credit enhancement, exchange of essential information, knowledge, capacity building, and advisory and consultation services.
