America has voted, but Egyptian goods still face a 12.5 percent US tariff. At home the pound sits near record lows as foreign money leaves the debt market, and the central bank has surprised the market with its first rate hike in more than two years. Dr. Ahmed Zaki, Secretary General of the Exporters Division at the Federation of Egyptian Chambers of Commerce, gives his first reaction to the US midterm results and what Egyptian businesses should watch. He makes the case for a dedicated services export council, names the sectors he sees leading the next phase of growth, and explains how fintech and banking could ease payment problems across Africa.
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What is your first reaction to the preliminary results of the US midterms, and what should Egyptian investors and businesses be watching?
My first reaction is that the Democrats won more seats than the Republicans. I think that is normal in this situation, because last year the Republicans and Mr. Trump created big problems for Americans all over the world, and the Democrats took that issue to the people. I think it will bring some quiet to the market on economic and political issues. But I do not think it will change anything in substance, because American policy is the same whether it is Democrats or Republicans. What matters is that Egyptians take this opportunity and work with it to help us in the markets, for investments and for business, and that we introduce more opportunities to achieve what we need.
Could the new balance of power in Congress affect US trade policy and investment relations with Egypt?
I think the Democrats will help Egypt and support Egypt during this period, these two years with Mr. Trump, who will face some controls on his legislation, on his approvals and on business, investment and aid. We must take this opportunity and use it for the market and for our plans in the Middle East with the Americans.
Could the results change Washington's approach to regional security and trade routes, or should we expect continuity?
I think it will not change much. It is the same strategies and the same policies. But we may see some quiet on the wars and on the fires in the Middle East.
You have called for a dedicated services export council. What would it achieve that the current system cannot?
It would help Egypt increase the hard currency coming in. Services are not a normal product. They are technology and training. Egyptians already have the ability and a good education to solve problems out of the box, and a council would help us export those services, our technology and our labour, to other countries to solve their problems. That is income in foreign currency for Egypt from outside, and it will increase the amounts held by the central bank.
Egypt's digital exports have reached 7.4 billion dollars a year. Which sectors have the greatest potential for the next phase of growth?
Education and health, and other services for technology and for logistics.
What is holding Egyptian service exporters back from receiving payments from overseas, especially in Africa, and can fintech help?
There is a big problem with currency and payment in Africa. Fintech can help us find ways to exchange and trade, where we give them services and take products. Establishing Egyptian banks inside African countries would help a lot with this issue. They can also market Egyptian services to African countries, which can increase trade with them more and more.