Government should focus on MoUs, promises made: Czech Ambassador to Egypt

Other delays and unexpected changes in parliamentary elections might worry some investors

sat down with the Czech Ambassador to Egypt, Veronika Kuchynova Smigolova, to discuss economic ties between the two countries and how to deepen their cooperation. During the interview, the political tension in the region was also tackled.
What is your opinion of Egypt's current economic situation after the Economic Summit?
I think that the result of conference was quiet positive, as it was a good signal for Egypt showing that it is strong and ready to invest. My general opinion of the economic situation now is it has improved, and the projects that have been started will help the economic development more in the country.
Did you attend the conference?
Yes, I attended. Our head delegations were the Deputy Minister of Industry and Trade and Assistant Deputy Minister of Foreign Affairs.
How do you see the investors' vision after the meetings at the conference?
I think that all investors are looking for a stable environment. On the one hand, it's good that the investment law was documented before the conference, but on the other hand, other investors have worries over some items of the law, declaring that they need some clarifications and explanation of some other details.
How do you see the current investment climate in Egypt?
I think the climate is connected to security and the general situation in the region. On the one hand, I see that there are investors want to come to Egypt, but on the other hand the general instability might also worry some investors.
What are the economic priorities the government should focus on after the conference?
I think that Egypt should first focus on the Memorandums of Understanding (MoUs), as well as the agreements that should be signed. This would lead onto what the government had promised in bringing higher economic growth which should lead, in consequence, to the better livelihood of Egyptians.
How could we use the agreements that were signed in the conference to secure economic growth for all?
I think that it has to do with the way investments will be used, as some of the projects are really big and need a lot of work. The aim should also be to produce a lot of long-term jobs that would increase the employment level, bringing more money to the people. I think that another important thing is to not limit the investments to the big population centres, where the people are already better off and have better education. Lastly, ways to develop rural areas, where a lot of people live, should be thought of, as they usually face poorer opportunities for finding jobs. The government should also ensure that all projects will be allocated around many governorates. I also want to indicate here the role of civil society in coming up with some ideas concerning developing projects, discussing what should be placed where.
Are there any new negotiations between your country and Egypt?
Our latest news is the operating of the "PEGAS" plant, as it represents our most important investment. The company is already thinking of enlarging its today's production capacity, which would mean another investment of €60m. The first stage of investment was worth €100m.
What is expectation for the total numbers of visiting tourists from Czech?
The Czech Ministry of Foreign Affairs recommends Czech tourists travel to the Red Sea resorts like Sharm El-Sheikh, Hurghada, Marsa Alam etc. My expectations are that more Czech tourists will come to Egypt by the end of 2015, maybe 10-15% more than in 2014.
What was the total trade exchange between the two countries last year, and your expectations?
By the end of 2014, the total trade exchange was $555m, $100m of which were Egyptian exports to the Czech Republic. For us, it was the highest figure since 1993. The top Czech export products were vehicles, machinery and small arms technology. On the other hand, the imported products from Egypt are usually cotton, cotton products and food. I hope for an increase in the exchange trade between the two countries in the future. I would also highlight that, according to our statistics, Egypt is the third largest trade partner from the region after the UAE, competing with Israel for the second place.
What is your opinion about the delay in parliamentary elections?
We will be happy if the roadmap is finished, but on the other hand the judiciary is independent, and if they decided that elections laws need some improvements, we have to respect the delay of the elections.
How could this delay affect investors' visions?
My opinion is that, if there is a clear process and if the path towards the elections is clear, then it should not affect negatively on investors' vision. Nevertheless, if there would be other delays and unexpected changes then it might worry some investors, but maybe not those with longer range goals.