Egypt's investment story depends on the people who can turn new factories and infrastructure into productive businesses. For one German bank, technical training is getting fresh attention — with a portfolio of €170 million already committed through AfDB. The business question is how that investment translates into skills employers need. Joining me is consulting engineer and economic commentator Raouf Gaafar. Thank you very much for joining us.
Thank you for hosting me.
Where do you see the biggest gap between the skills people have and what businesses actually need today?
We have enough universities to graduate a lot of specialities. But university studies are approximately 90% theoretical. Business requires practical work. Although there are some practical workshops in universities, it is not enough. So first, universities have to direct their curriculums towards what society, business, and the country needs. And then, no matter what, any university graduate has to be formed — trained before being put to work, whatever technology he will handle, whatever machinery he will operate. Training comprises many things: punctuality, languages, whatever is needed. But mainly he has to be fully aware of the type of machinery and practical work he will be performing.
From a business owner's perspective, what does that skills gap actually cost?
All three — production is affected, quality of the product is affected, and opportunities to grow are missed. Having a skilled hand in the factory makes a big difference. The most important thing is to keep training. A skilled worker is good, but he has to be kept aware of all upgrades and renovations in whatever he is working on. And if we can use him to train other people, that reflects very positively on production. That is a crucial point for any investor.
Companies worry about paying for training and then losing the employee. What would make investing in people a more attractive business decision?
In an open market there is always competition and people will be tempted to move if conditions are better elsewhere. I have experienced this myself — spending and investing in training and forming labour, and then they leave. But one has to develop a sense of belonging in people. Offer as much better conditions as possible. Match the normal wages prevailing in the market. And interview them before forming them to make sure they have a minimum standard of ethics — that will reflect on their staying rather than leaving.
Could shared training centres make it more affordable for smaller firms?
Definitely. If I am operating with 200 or 500 or maybe 1,000 workers, it is easy to establish my own training centre. But if we are talking small enterprises of 30 or 40 workers or fewer, we cannot afford to build our own academy. The shared training centre is a very big asset — it helps reduce the cost and the investment in forming these workers. There are now specialised companies that offer this kind of training for small and medium enterprises. It is absolutely one of the most important things to have.
Engineer Raouf Gaafar, it has been a great pleasure having you with us.
The pleasure was mine. Thank you for hosting me.
