The Egyptian-Russian Business Council is currently working with the Export Development Bank of Egypt (EDBE) to help create warehouses for small Egyptian exporters where the bank can finance the exporting process, according to the Secretary General of the Federation of Egyptian Chambers of Commerce (FEDCOC) and Egyptian-Russian Business Council, Alaa Ezz.
Most Egyptian investors in Russia are exporters interested in warehousing and infrastructure for retailing. The bank will be paid after the exporter sells his products using the Russian Rouble, Ezz highlighted.
The value of Russian investments in Egypt amount to approximately $56m, a “low figure” Ezz said, and mainly cater to Russian tourists visiting Egypt.
“Egypt was not a destination for [investors from Russia] in the past 20 or 30 years,” Ezz said.
Both parties are looking to diversify their trade and increase their third country exportation, Ezz added, with components provided by Russia, then manufactured in Egypt before being exported to other countries.
“In cars for example, the brand owner makes 30-40% of the cars, while the rest is outsourced from other countries,” Ezz said. He added that components are exported from Egypt to different manufacturers worldwide.
“They send the [completed part] to Egypt and we complement it with Egyptian feeding industries and make up the 100%,” Ezz said. He also said this then makes the product an Egyptian one eligible for export.
Both sides can then benefit from the customs applied on the products, he added.
A Russian delegation, comprised of 120 companies and over 70 government officials, is visiting Egypt to discuss the possible means for developing economic ties.