Egyptian businessmen are trying -- somewhat unsuccessfully -- to promote closer economic ties with their German counterparts, reports Sherine Nasr Egyptian-German economic relations have been growing steadily. Germany has managed to position itself as Egypt's second largest trading partner after the US. In 2003, Egypt was Germany's third most important trading partner in the Middle East, after Saudi Arabia and the United Arab Emirates. On the flip side, German imports from Egypt rose to 288.5 million euros in 2003. The main Egyptian exports to Germany include fuel, machinery, motor vehicle components and clothing. German exports to Egypt totalled around 1.4 billion euros for the same year. Machinery, electronic and chemical products and vehicles are among the major German exports to Egypt. German direct investments in Egypt, according to Bundesbank figures, totalled 354 million euros in 2002, with subsequent increases over the next two years. These figures, however, reveal but one angle of a larger, more complicated picture. Last week, for instance, none of the major German companies working in Egypt showed up at an Egyptian-German Business Council meeting; no reasons were given for the boycott. Organised by the Egyptian Businessmen's Association (EBA), the meeting was meant to discuss the ways and means of catalysing more economic cooperation between German and Egyptian businessmen. According to Salem Mashhour, the president of the Egyptian-German Business Council, the "alarming" boycott meant there was a "lack of trust on the German side". If anything, it also made clear that both countries' business communities were lacking an organised, well- established format for cooperation. In Egypt, both the EBA and the German-Arab Chamber of Industry and Commerce (GACIC) have, thus far, failed to build bridges of mutual trust, not to mention cooperation. "We have to admit that there is a lack of coordination between EBA and the chamber," said EBA Deputy President Adel Gazareen. It is worth noting that the GACIC has been operating its different offices in the Near East region for more that 50 years. A correspondent of the German Office for Foreign Trade is also based in Cairo. Both entities are involved in informing the business community in Germany about business opportunities in Egypt, by preparing sector-based analyses and reports on the performance of the Egyptian economy, and by helping German businessmen make contacts with Egyptian officials. "The role of the EBA and that of the chamber should be complementary. We are not in a position to compete with them," said EBA member Amal El-Tobgi, " but rather to integrate our services for the best interests of the business community." It would not be an exaggeration, meanwhile, to say that most business partnerships between the two sides are being conducted via public relations and personal contacts. This is despite the fact that Egypt and Germany have signed many an international trade cooperation agreement. Among these are the Association Agreement between Egypt and the European Union, which went into force this summer. There are other agreements on the industrial federations level that need to be reactivated. Among these is the agreement between the German Federation for Small and Medium-Sized Enterprises (SMEs) and the EBA. "The federation comprises 120,000 members representing the most successful companies in the SME field," said EBA member Emad Taymour. "The agreement enables both sides to exchange information and experience, and helps businessmen find partners." Taymour said the Egyptian side has not been that active in maintaining its contacts with the German federation. Certain Egyptian industries -- and particularly the textile sector -- have a better chance of penetrating the German market. According to The German Arab Trade magazine (GAT), German imports of textiles were estimated at 29 billion euros in 2002. "Egypt's exports of textiles to Germany for the same year was estimated at 72 million euros, which represents a meagre 0.25 per cent of the total German imports of textiles," the magazine said. Egypt -- which produces 30 per cent of Africa's high-quality cotton -- is clearly qualified to grab a larger share of this market. "The Egyptian business community should be more active in interacting with its German counterpart," Mashhour said. One way to do so would be to organise regular visits for German businessmen to Egyptian factories. "Moreover," he said, "we should come up with concrete ideas and economically viable projects to attract more German partners to Egypt, and create better chances for Egyptian businessmen who seek to venture into the German market."
