To break it down, I'm joined by Matt Beshay, Head of the Internal Trade Committee at the Importers Division of the Federation of Egyptian Chambers of Commerce. Welcome, sir.
Thank you, sir. I'm very happy to be with you today.
We're glad to have you. From where you sit right now, what is the single biggest pressure on importers at the moment — is it the exchange rate, trade finance, customs, or weak demand? And which one moves prices the fastest?
To make it easy for the audience — the most important driver of pricing in the Egyptian market is currency. Egypt is a very big market that imports nearly 60 to 70% of its needs, and currency can account for up to 70% of the cost of anything being imported — more than raw materials, more than shipping rules or port costs. So when we as importers calculate our costs to stay competitive, it all comes down to currency. We are always looking for a lower rate so we can offer competitive prices to the end user. And when you go to the market, you do see that reflected in price decreases.
In that regard, Egypt and China just expanded their currency swap to 30 billion yuan. In practical terms, when an importer walks into their bank tomorrow, can they actually settle a Chinese shipment in yuan and pounds? Or is this still a central bank tool that hasn't reached the trade floor yet?
It's similar to the situation with the Russian ruble — there's a benefit to having an alternative currency arrangement, but it's not yet 100% applied across Egyptian banks. That said, it may be applied in the near future, and it would reduce pressure on the dollar. Right now, speaking as of today, we as importers don't have major problems with banks regarding currency for import invoices. But to resolve the imbalance with China specifically — where we take far more from them than they take from us — we need to think about opening new markets. The government's road plan targets $100 billion in exports, and this kind of agreement can be a good starting point for shifting the importer mindset from importing to producing. When we produce more, we can export more to a large market like China and use these agreements for real economic growth.
Let's talk about China's zero tariff access now open to Egyptian goods. You've pointed to food and beverage, fabrics, cotton, and engineered products as candidates. Realistically, how long before that turns into actual orders, and what's the financial bottleneck holding it back?
Anything you can export from Egypt to anywhere in the world is a big benefit, especially when we currently import 60 to 70% of what we need. Fruits, cotton, furniture, food and beverage, some mechanical and industrial goods — all of these would be a very good start for export. The government is playing a big role in providing the facilities needed, and the Chamber of Commerce is working to shift the mindset of thousands of importers — from simply sending emails to suppliers and receiving goods, toward thinking about production scale, about what it takes to produce locally and export with a "Made in Egypt" label. Anything exported is a benefit. But what we as importers need from the government is patience and consistency. This is not a quick fix — it's a steady, well-calculated process because you are changing the mentality of importers into producers. Everything takes time.
Let's talk about what the government is doing to ease the process. The digital customs portal — since January, ACI has been mandatory for air freight. From an importer's perspective, has digital customs genuinely cut clearance time and cost, or has it added a new layer of compliance and friction?
Honestly, it's a good start. Digitalization and more technology is a worldwide vision. At first, people were afraid of the new system — as they are with any new program — but over time it's proven more and more useful. We've shrunk clearance time from seven or ten days down to two or three days, which is something very much appreciated from the government. We don't have major problems — maybe no more than 5% error rate due to system pressure, like any normal system. Even banks go down sometimes. But overall, this is making the process between port employees and customs clearance more digital and better organized. We as importers are happy with it. No real delays.
Matt Beshay, thank you very much. Great to have you with us today.
Thank you, and you are most welcome. Thank you.
