More Omar Effendi stake-holders SIX months after its controversial sale to the Saudi Anwal group, Omar Effendi, Egypt's largest retail store, is still making headlines. The company signed an agreement with the International Finance Corporation (IFC), the private sector arm of the World Bank, according to which the latter will acquire a five per cent stake in Omar Effendi in addition to granting it an eight-year loan of $40 million with a grace period of two years to upgrade and renew Omar Effendi's stores nationwide. Omar Effendi Chairman and Managing Director Jameel A Al-Gnaibit pointed out that the loan is to finance a full scale one year long modernisation plan which will not only encompass Omar Effendi's 82 branches but also its staff. The plan includes a face-lift for Omar Effendi's interiors and exteriors, automating branches and warehouses, installing air conditions, and upgrading machinery and display methods. The government stipulated that the downtown Abdel-Aziz branch exterior remain as is, as it is considered a historical building, though Omar Effendi will be inviting bids to renew the interior. By the end of the year, this branch should be open, specialising in household products. However, renewal will not be finished until the end of 2008. Sales staff and senior management including branch and regional managers will undergo retraining. Established in 1856, Omar Effendi is Egypt's oldest and largest department store chain. In February 2007, Saudi Arabia's Anwal United Trading Company finalised the purchase of 90 per cent of the Omar Effendi chain for $102.5 million in addition to its previous LE80 million loans. The government of Egypt maintains a 10 per cent ownership. Grassroots foreign aid Canadian aid aims to help Egyptians help Egyptians, Eric Walberg finds out. The Canadian Embassy recently hosted an exhibit of SMEs that have benefitted from aid from the Canadian International Development Agency (CIDA). Working in Egypt for about 30 years, CIDA has concentrated its efforts during the last eight years to support SME development as well as basic education, its other main focus. SMEs provide the livelihood of more than 90 per cent of Egyptians, according to head of CIDA in Egypt Peter Paproski, "so that's where we decided to put our emphasis." In addition to cooperation with the Ministry of Finance on SME funding, there are two hands-on projects, one through CIDA's Business Development Support Services Project (BDSS) in the Delta (Alexandria) and Upper Egypt (Minya), with a coordinating office in Cairo. The other is working with Al-Mubadra, an Egyptian NGO with regional economic development centres in Cairo, Qena and other cities. The goal of the programme is to assist specific sectors, women and youth, in supporting equitable and sustainable economic growth, "to share Canadian values of environmental awareness, equal opportunity for men and women, and children's rights," according to Paproski. "CIDA is not a bank," he stressed, "but provides non-financial support to improve the ability of SMEs to get loans, manage their businesses, improve quality, and move up the value chain from, say, two to 50 workers." CIDA tries to coordinate and develop partnerships in its work with other aid agencies such as the Aga Khan Trust for Culture Initiative. It provided $500,000 to the trust's very popular Al-Azhar Park project, which boasts a spectacular panorama of Cairo. Paproski hopes to work in partnership with the Aga Khan Trust on its Al-Darb Al-Ahmar community development project near Al-Azhar in Cairo, where hundreds of craftsmen have workshops producing fine metalwork, carpets and other handcrafts. At the embassy exhibit, Al-Ahram Weekly spoke to Haidy Wagieh Sadek, administration officer for the Minya BDSS office. The local SMEs involved in the project sell honey, royal jelly and other health foods in addition to wood carving, lace work and carpets. Sadek has worked with the Coptic Evangelical Association of Social Services (CEOSS), which provides education in health, education, commerce and agriculture, "but this CIDA project has quickly shown concrete results, which is what really counts," she said. Yasmeen Nabil has been working for 4 months on her unit project in Beni Sweif and was very proud of its fine lace work and carpets . "We already have 20 young women in our group. Just look at the fine quality. The girls work at home and their work is excellent. It is so important to the families participating." The various projects are planning to produce catalogues, and the Minya BDSS office already has a website www.miniainvest.com. BDSS is also developing a Small Business Advisor Programme in conjunction with the American University in Cairo, a Small Business Certificate programme with Egyptian universities and the establishment of a One-Stop Shop for SME exports in Alexandria. The agency is working to assist these small projects in reaching the world market through Internet access. EU-Egyptian research cooperation TO SUPPORT research, development and innovation initiatives, the government inked a grant financing agreement with the EU worth 11 million euro on 18 June. The signing took place during the Ministerial Euro- Mediterranean Conference on Higher Education and Scientific Research held in Cairo. The grant will finance a new programme which will be implemented over four years by the Ministry of Higher Education and Scientific Research to facilitate the cooperation of Egyptian and European scientists and research institutions and help Egypt benefit from the seventh Research Framework Programme launched earlier this year. An Egypt/EU Innovation Fund worth 6.5 million euro will be established under the programme to finance competitive innovative projects jointly submitted by enterprises and research institutions, bridging the gap between industry and academia and helping introduce new technology-based products to the market. This is the first direct EU support for Egypt's science sector and reflects its confidence in the Egyptian government's strategy to move towards a knowledge-based economy and society. US export promotion assistance ON 18 JUNE, the Industrial Development Authority (IDA) signed a cooperation protocol with the American Chamber of Commerce in Egypt aimed at providing technical assistance to Egyptian industries in different governorates. Amr Assal, chairman of the IDA, said the protocol will help enhance the competitiveness of Egyptian industries, attract foreign direct investment, and increase Egyptian exports, especially to the US. Raising the volume of Egyptian exports from LE18 billion to LE42 billion is a top government priority. Assal added that a unified industrial law is currently being prepared and should be presented to the People's Assembly for passage this year. Airlines code-sharing FURTHER cooperation between EgyptAir and Lufthansa will begin with the introduction of the winter timetable at the end of 2007. At EgyptAir's headquarters in Cairo, Lufthansa Chief Executive Wolfgang Mayrhuber said: "Egypt has been one of the most important markets for Lufthansa on the African continent." Lufthansa currently operates 17 flights per week from Egypt to Germany. Under the terms of the agreement, both airlines will offer flights between Munich and Cairo, Frankfurt and Cairo, and Frankfurt and Alexandria with joint flight numbers. "Further code-share services, especially to the tourism centres of Egypt and North Africa, are being planned, following official approval by the air traffic authorities," according to a Lufthansa press release. "EgyptAir is an ideal partner for us, because with this cooperation we can position ourselves long-term in one of the most dynamically growing markets in North Africa," said Mayrhuber. EgyptAir Chairman Atef Abdel-Hamid said: "Our cooperation with Lufthansa represents a strategic alliance, which will enhance our European market." EgyptAir with the help of the German carriers is close to join the Star Alliance -- founded in 1997 by Air Canada -- a move which would help EgyptAir improve its business in Africa and the Middle East.
