Hard as rock TWO cement companies were found this week to have violated the Ministry of Trade and Industry's (MTI) decree regulating the cement market and were referred to prosecutors for interrogation. The MTI decree stipulates that all cement factories are required to specify to their agents and distributors the maximum sale price of cement to consumers. And they are required to inform the Internal Trade Unit at MTI, not only of these prices on the third Thursday of every month, but also to disclose their cement stocks as well as their records. The decree was issued by the minister of trade and industry to put a halt to an escalation of cement prices, made worse by a truck drivers' strike, which threatened to escalate into a crisis. The decree also stipulates that the sale of cement at a price higher than that announced, with the knowledge of factories, is strictly prohibited. The penalty for violators includes a fine, confiscation of the goods, revocation of their permit, closure of their sales outlet and a jail term of no less than one year and a maximum of five years. Keep it coming DESPITE the global financial crisis, Egypt's exports to the United States during the fourth quarter of 2008 grew by 65 per cent to $715 million compared to the fourth quarter of 2007. The figures, released by the US International Trade Commission, and reported by the Egyptian Ministry of Trade and Industry, also show that non-oil exports grew by 24 per cent to $348 million. Meanwhile, Egypt's imports from the US during the same period fell by 21 per cent to $1.242 million. In the meantime, another MTI report showed that textiles and clothing exports in particular also rose during 2008 by five per cent, to reach $913.8 million compared to $869.9 million in 2007. However, Egypt's exports quantitatively and as a whole fell by 2.9 per cent over the year to reach $304.8 million, compared to $313 million during 2007. Egypt's position among textile and clothing exporters to the US rose to 23rd position in 2008 compared to 25th in 2007. Egypt achieved the highest growth rate in textiles and clothing exports, after Vietnam and Bangladesh. Meanwhile, exports from the Qualified Industrial Zones also grew during the year by 6.2 per cent, reaching $775.8 million compared to $730.5 million last year. Take two THIS WEEK the Second Investment Conference for the Middle and West Delta governorates was held in Menoufiya governorate. The conference addressed concerns relating to the host region as well as Gharbiya, Beheira, Alexandria and Marsa Matrouh provinces. It came as part of the Ministry of Investment's attempt to shed light on investment opportunities in Egypt's regions. It was also an opportunity to listen to problems facing investors in each of these provinces. As a follow-up to the first conference held in August 2008, this week's event highlighted 260 companies that have been established since August last year, with an issued capital of LE1.2 billion. Meanwhile, 95 other companies increased their capital by a total of LE3 billion. Minister of Investment Mahmoud Mohieldin stressed that encouraging investment at this time, while the world confronts a financial crisis, is of critical importance. He said that this is no time to be picky about investors. "There is great competition to attract investments," he said, adding that "potential investors, if faced by obstacles, will take their money elsewhere, out of Egypt." Mohieldin added: "Any project that will make jobs available should be welcomed." In addition, Mohieldin announced that the General Authority for Investment and Free Zones is opening a compound for investor services in each governorate to facilitate the investment process. Going East VISITING China this week is an Egyptian industrial delegation headed by Rachid Mohamed Rachid, minister of trade and industry. The visit aims to increase Chinese investments in Egypt and Egyptian exports to China. While in China the minister will take part in the Egyptian-Chinese business forum, besides preparing for the Chinese-African Forum scheduled to be hosted by Egypt later this year. The two countries will also sign an agreement banning the entry of Chinese products that do not conform to standards and specifications by virtue of which the Chinese Export Supervision Authority will examine all goods exported to Egypt. Both sides will also discuss the possibility of establishing a number of joint projects in the area of manufacturing car engines which run on natural gas, electric transformers as well as technology transfer in electric and heat insulators and food industries. Strengthening OIC trade A MEMORANDUM of Understanding (MoU) was recently signed in Casablanca, Morocco, between the International Islamic Trade Finance Corporation (ITFC) and the Islamic Centre for Development of Trade (ICDT). The MoU is the first step towards building strategic relationships to achieve a common goal, namely increasing the volume of trade among Organisation of Islamic Conference (OIC) member states as a means to achieve sustainable economic development, said ITFC CEO Walid Al-Wohaib. The MoU is one attempt by OIC member states to achieve their target of raising the level of intra-OIC trade by 20 per cent by the year 2015. It will also seek to provide training seminars and courses for trade specialists in member countries to enhance their skills in trade promotion and facilitate improved technical cooperation between the ITFC and the ICDT. Egypt is a member of the OIC, which represents a grouping of 57 Islamic countries with a potential market of almost 1.5 billion consumers. In 2008 the ITFC approved trade financing amounting to $100 million for the importation of liquefied petroleum gas (LPG) from Algeria to Egypt for refining, a move which allowed the Egyptian government to provide fuel at a subsidised rate and hedge against the then uncontrollable volatility of international oil prices.
