Well, today we're joined by someone who sits on both sides of this story as an official voice for Egyptian exporters and as an exporter himself.
We're joined by Ahmed Zaki, who is Secretary General of the exporters division at the Federation of Egyptian Chambers of Commerce and chairs its African Affairs Committee.
And he also runs his own export business, General Business Global, part of the Zaky Group.
Mr.
Ahmed Zaki, we're very pleased to have you with us today.
I'm happy to join with you and During this, Mr.
Ahmed, let's start by the numbers.
The quarter, the first quarter numbers are quite stark, a 50 to 54% wider trade deficit, nine oil exports down 12.5%.
How much of that is the U.S.Israel Iran conflict spillover, and how much is a structural weakness Egypt already had?
Already a problem for the war between USA and Israel and Iran make more effect for export.
It's reduced for the first quarter of the year.
I think it's come down about 7 or 8%.
Doubt and it's a big percentage because we always Egypt put goals and put strategies to increase the export in Egypt and to increase the amount to be $100 billion US dollars in 2030 and there's a problem, you know, of This close of Strait of Hormuz and the sources of oil and gas all over the world, it made a problem for the cost of shipment and the cost of freight.
It's it's become and increased much, and it's also the war insurance of war.
It makes it's not in the Middle East only, it's all over the world because the lines divided the coast all over the world.
Even in Mediterranean Sea, Red Sea.
Yes, we, we also know that you run your own export company alongside your role at the Chambers Federation.
Uh, from the inside, what's the actual bottleneck right now?
Is it financing, shipping costs, which you've just mentioned?
Is it market access or something else perhaps in the bureaucracy?
Let's say all and you will divide between the cost of freight and also the insurance, war insurance.
It's increased much, you know, in the war and this area, it's a long time problem.
There is, it's not suitable and not, it's always a problem in this area and also.
Let us also say finance because the finance in Egypt has increased.
When you need to make investment and need to take money from banks, the percentage is high.
When you work and make profit, it's not, it's not balance between this and this and not fair.
That's all, yeah, yeah, I mean, yes, yeah, I think, I think we need to, to, to, to put another strategy for this issue.
Mhm.
Absolutely.
Now let's shift the conversation towards the Egypt trade platform.
This platform is meant to centralize data and procedures for exporters, but is it actually reducing time and cost for a mid-sized exporter today, or is it still mostly just potential?
No, no, I mean the government tried to reduce the rate of export for exporters, and now the the the porters you don't stay a long time, that you reduce your costs and reduce the fees you pay and reduce the losses even for agricultural products.
That's it's good and government try, try to help export as much, and I think now it's they already reduced the time for for this issue.
Now on the banking side, trade finance, credit insurance, foreign exchange handling for exporters, are Egyptian banks and fintech players actually delivering what exporters need, or is that still a gap?
It's not a gap.
It's, it's fair for the government, for Egyptian government, because we use and we, we, we make benefit for Egypt because some exporters make export and the money go outside Egypt.
It's not fair that now they put Commitment or promising for this issue with bank, you will collect all this money to Egyptian banks.
That's it's fair for Egypt and they will use and you will increase the amount of the banks for central bank.
Or a foreign currency, what everybody's hoping for.
Thank you very much for being with us, Mr.
Ahmed Zaki.
It's been a pleasure.
Thank you very much.
Thank you.
