Antoine El Khoury speaking at the North-Africa event of MEDEF in Paris

 Interview With Antoine El Khoury, Managing Partner of GOELAND OVERSEAS, further to the North-Africa Event organized in Paris, on 15 December 2022, By MEDEF* Ile-de France and Conseil National des Conseillers du Commerce Extérieur de la France (CNCCEF)

On December 15th, our Managing Partner, Antoine El Khoury, participated in the business event organized in Paris, by the French businessmen organization MEDEF1 Île-De-France, to promote doing business in North-Africa towards French companies and SMEs. The event was inaugurated by French Minister Olivier BECHT, in charge of Foreign Trade, and was attended by Ambassadors of North-African countries to France and by members of the French business community. Mr. El Khoury, who was standing for the French Foreign Trade Advisors in Egypt (CCEF), represented Egypt at the event, alongside with His Excellency Mr. Alaa Youssef, Ambassador of Egypt to France. They presented together the opportunities and challenges of doing business in Egypt and how French companies can contribute to the development of this country and boost their development through this deep and dynamic market.

Mr. El Khoury, how was this experience of presenting Egypt towards the French business community in Paris and what difference do you think this event made?

It is difficult to present in only few minutes, a market that is as large, as deep, and as dynamic as Egypt. From the very beginning of my speech, I felt that the perception of the Egyptian market in France was not aligned with the reality and that the French companies do not realize the scale of Egypt from a business perspective. I focused therefore my presentation on four key messages that were easy to remember, and that should be considered as foundations for any expansion project towards Egypt. Speaking after the Ambassador, I also wanted my approach to be practical and to provide insights that are based on my experience in the market, as a French entrepreneur based in Egypt, and that are also based on the practice of business in Egypt by my fellow CCEF Advisors, especially that France is strongly present and active in the Egyptian market.

How did you describe the French presence in Egypt?

There is indeed a Very Strong Presence of France in Egypt. This was my first key message to the audience. It is important for an entrepreneur to know, when considering developing his business in a new market, that he can learn lessons from other French companies that are operating in that market. It is also important to understand the reasons behind such a strong presence. Beyond the fact that France and Egypt have a strategic alliance in the East Mediterranean region, they are also economic partners and, through the French Development Agency (AFD), the Public Investment Bank (BPI) and the Government, France is strongly engaged, through direct or indirect multi-billion investments, in the economic development of Egypt.

On the private sector side, there are around 200 French subsidiaries that are present in Egypt, which includes most of the large French companies (CAC-40) as well as many SMEs. These companies employ more than 50,000 people in Egypt. This is in addition to 4,500 French companies that export goods and equipment to Egypt. Moreover, around 6,000 French nationals are established in Egypt and are involved in business from within the domestic ecosystem. French companies are successful in many major sectors, such as technology, urban transportation, energy and defense, and are positioning themselves in new promising sectors, such as green hydrogen, desalination, data, logistics and food security.

It is worse noting as well the strong presence of the French Education in Egypt, through the expansion of the French International Schools across the country, and the development of the French University in Egypt.

This well anchored French presence is founded on strong economic fundamentals that are development and value drivers. As a result, several French and Franco-African investment funds are carefully monitoring the market and planning their deployment in Egypt.

How do you explain this presence of France in Egypt? Does Egypt really offer attractive opportunities?

Egypt is an extremely dynamic market that is literally boiling, and the last few years have demonstrated the resilience of the economy and its sustainable growth, despite major global crises that have shaken the world. With its 104-million young population, including 60% under the age of 30, that is growing at a rate of almost 2% per year, you can imagine for instance the number of new schools that need to be developed every day. The same applies in all sectors. Moreover, development needs in all areas of the society have accumulated over the last decades. Since 2016, the government of Egypt has engaged economic reforms that have set the tone for the development of the country. Since then, we have witnessed an in-depth transformation, a metamorphosis of the Egyptian society, and a dynamic and growing business activity. The middle class has grown in number and in purchasing power, leading to the transformation of consuming behavior toward modern and demanding lifestyles.

As a result of this fast development pace, Egypt Offers Multiple Opportunities to invest and export French expertise, and to contribute to the growth of the country in many areas of the economy. Priority sectors, such as Education, Healthcare, Logistics, Agriculture and Food Security, are supported by the Egyptian authorities and The Sovereign Fund of Egypt. Other strategic sectors such as Renewable Energy and Water, are supported by the Economic Zone of Suez Canal. There as well new fields that are developing, such as E-commerce, Fintech, Cybersecurity, data, etc. The French Embassy have identified a list of sectors that are considered as priority areas for French know-how, to develop in Egypt, and to build their expansion on this dynamic, growing, exceptionally located platform for Africa and the Middle East. The French network in Egypt is there to support new entering companies and guide them through this promising, but also challenging market.

What are the main difficulties to expect in Egypt?

Doing Business in Egypt is Challenging. The country is ranked 114 by the “Ease of Doing Business” Index (France is 32). The economy is going through an in-depth reform and is not yet smooth for business. The bureaucracy is still heavy and laborious. The judiciary system is slow and may be uncertain, leading the business community to prefer international arbitration clauses. Moreover, the market is very competitive and price sensitive. The powerful public sector is still heavily involved in business, which makes the market even more competitive and unsecure.

Since February 2022, the country is facing a challenging macroeconomic situation, that is affecting the daily operations of companies. Currency is depreciating and inflation is growing, leading to a rarefication of foreign currencies, and of imported commodities, including raw material and manufacturing equipment. Overseas cash transactions have been practically impossible for months, which is challenging for foreign companies.

Expanding towards Egypt is promising and to be considered, but it requires prudence and diligence. The good news, is that French companies can rely on a strong network to guide and advise them locally.

Who is the French Network in Egypt composed of and how can it be reached?

The French economic diplomacy is active, well connected and well organized in Egypt. We have a Reliable Network that is composed of several groups. First, there are around twenty Foreign Trade Advisors (CCEF), all active business executives in Egypt, who support the French economic network on a volunteering basis. They can be reached by email (egypte@cnccef.org). There are also the Economic Department of the French Embassy, Business France, and the French Chamber of Commerce and Industry in Egypt. The team is well connected with the French business community and with the local authorities and with the Embassy of Egypt in France. There is also a reliable network of French and French-speaking professionals who can provide advice and consultancy in legal, tax, finance, accounting, banking, marketing, and business development.

How can GOELAND OVERSEAS help French companies?

We are present at the very heart of the economic relations between France and Egypt. Our mission is to create and develop investment projects that are purposely customized for French expertise, French equipment, or French funds. We are currently focused on priority sectors, with education projects and healthcare projects in the pipeline. We are well connected locally and have a wide understanding of the opportunities and challenges of the market. On the other hand, as French Foreign Trade Advisors (CCEF), we provide reliable support to our fellow French entrepreneurs.

What are your last words to French companies?

I would like to repeat my four key messages, to be remembered by each French company considering Egypt:

There is a Strong Presence of France in Egypt, because Egypt Offers Multiple Opportunities. however, the Business Environment in Egypt is Challenging. Therefore, do Rely on the French Network for support and advice.

 Contact us. We will be glad to help…

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(*) MEDEF (Mouvement des entreprises de France) is the largest employer federation in France. It has more than 750,000 member firms, 90 percent of them being small and medium enterprises (SMEs). MEDEF is engaged in supporting the development and sustainability of French companies, and representing them before the French authorities and international organizations.

Contact Us: Antoine EL KHOURY (CCEF) - Managing Partner - GOELAND OVERSEAS. Egypt: +20 122 7692626 ; France: +33 6 75706247 ; aelkhoury@goelandoverseas.com ; www.goelandoverseas.com