Polish Market No.255 /2016

PU B LISHED SIncE 199 6 No. 255 /2017

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egypt

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olish people love Egypt. This is an example of mutual relations free of any aversion or prejudice. These were absent in the past and they are absent today. Tens of thousands of Polish tourists visit Egypt every year and it is not easy to discourage them, in contrast to other nations. The widespread opinion about the Poles is that: “If they have come once or twice they will come for the sixth and seventh time.”

Poles discovered Egypt late. The first documented Polish tourist in Egypt was Prince Mikołaj Krzysztof Radziwiłł Sierotka (1549-1616), who visited Egypt during his pilgrimage to the Holy Land. He trekked across the deserts and along the Nile, and climbed the pyramids. He left behind the first Polish description of a tourist travel. In the 18th and 19th century, there were a few dozen such Polish tourists. In the years 1637-1641, Tytus Burattini made the first detailed map of Egypt based on triangulation. Polish men of letters – Jan Potocki, Juliusz Słowacki and Henryk Sienkiewicz – added descriptions of Egypt to the canon of Polish literature. Gen. Henryk Dembiński, a hero of the November Rising and Springtime of the Peoples of 1948, modernized Muhammad Ali’s army.

A romantic episode was a trip to Egypt by Count Michał Tyszkiewicz, an adventurer – a Polish Indiana Jones. He went to Egypt to hunt crocodiles. But fascinated with the country’s cultural heritage, he started archaeological studies and excavations, applying for permission from the local authorities, which in middle of the 19th century, was quite a rare practice. His work marked the beginning of Egyptology in Poland. In 1897, the department of classical archaeology was established at the Jagiellonian University. Among the places where the archaeologists conducted excavations was Giza. But real research successes came after Poland regained independence. They are associated with Prof. Kazimierz Michałowski and the discoveries he began in 1934. Michałowski educated

new generations of Polish Egyptologists. And in the 1960s, he led an international commission whose task was to salvage the Abu Simbel temples during the construction of the Aswan High Dam. His further work secured him a place among the best experts on Ancient Egypt and to a large extent enabled his Polish successors to make further discoveries.

Among the most important ones, and still continuing, are excavations in Memphis led by Prof. Karol Myśliwiec, expeditions to the eastern Nile Delta, the discovery of the buildings of the legendary university in Alexandria by a Polish-Egyptian group of archaeologists, and quite recent research on climate history.

In 1956, Poland and Egypt established diplomatic relations. They were exemplary as the two countries sought potential areas for research, educational, military and economic cooperation. On many occasions, our diplomats worked together, in particular in the United Nations Organization.

Polish-Egyptian economic relations do not have a centuries-long history. An interesting fact is the presence of Polish tourists in Helwan in the late 19th and early 20th century. There were two Polish guest-houses in the city at that time and a book entitled “The Helwan Spa Town (Egypt) and its Sulphur Springs: Wanda Bilińska’s Willa Wanda Guest House and Sanatorium” was published in 1912. This tradition of expatriate Poles’ activity in Egypt has continued to this day. It is now supported by the Polish Embassy and the Polish Senate.

Polish economic activity in Egypt on a larger scale started after 1960 as part of the large modernization plan connected with the construction of the High Aswan Dam and cooperation between the defence sectors.

However, prospects for developing these relations appeared only after 2005 when Polish tourists rushed abroad and when the Polish economy was able to offer Egypt attractive proposals for cooperation in such areas as agriculture and food-processing, food exports, research services, equipment for the oil and gas sector, railway infrastructure, automotive products, medical equipment, household appliances and so on. As the European market has become saturated, Poland began global expansion.

One of the strategic parts of this plan is the Go Africa programme, in which Egypt is our biggest partner. The increase in trade in recent years has been coupled with a considerable growth in direct investment on each other’s markets. This indicates that our new economic ties will not be short-lived, which bodes well for the future.

Krystyna Woźniak-Trzosek Editor-in-Chief, President Rynek Polski Publishers Co. Ltd.

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POLISH-EGYPTIAN COOPERATION IN THE AGRICULTURAL SECTOR IS DEVELOPING DYNAMICALLY Krzysztof Jurgiel, Minister of Agriculture and Rural Development

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olish agriculture is one of the largest economic sectors in Poland. Its contribution to the country’s GDP is much higher than the EU average. The excellent raw products for the food sector, produced under four European Union and five national quality systems, combined with one of the most modern food-processing industries in Europe have become a ticket for Poland to enter many foreign markets. Agricultural and food products are one of the Polish export specialities, accounting for around 13% of the total value of exports. More than 30% of food produced in Poland is exported to over 70 countries. This shows that Polish agriculture makes a significant contribution to the food security of not only EU, but also the world.

One of Poland’s strategies for the development of exports is looking for opportunities to establish direct trade relations in third countries so that the involvement of other EU countries acting as go-betweens in exporting Polish agri-food products to these countries is no longer needed.

In 2016, the value of Polish agri-food exports reached EUR24.2 billion and was higher by 1.26% than in the previous year. It is worth noting that more than one third of the output generated by our food-processing industry is exported. European Union countries have been the most important trading partners for Poland in the agri-food sector. For many years Germany has been the largest importer of Polish agricultural and food products, followed by Britain, the Czech Republic, Holland, Italy and France. The Polish food-processing industry is a major food producer in the European Union, ranking seventh in this respect.

Poland is the EU’s largest producer of poultry, apples, blackcurrants, triticale, oat, cabbage, raspberries and carrot; the second largest producer of rye, strawberries and cucumbers; and the third largest producer of sugar beet, wheat, rapeseed, cauliflowers, onion and leek. Poland is also a major producer of potatoes, milk, cheese, butter, tobacco and tomatoes. Poland’s flagship exports are fruit juices made from apples, cherries, currants, strawberries and chokeberries. Poland is the world’s leader in the production of frozen fruit and vegetables.

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Egypt is one of Poland’s main political and economic partners in the African continent and among Arab countries. Economic cooperation between our firms is steadily growing, which is reflected in trade figures and Polish companies’ investment in Egypt. Poland is interested in the development of cooperation in the agricultural sector, being aware of the potential that the two sides have in this area.

Egypt has for years been a major importer of agricultural and food products from Poland. In 2016, Poland’s agri-food exports to Egypt were worth EUR112.7 million, which accounted for nearly 20% of Polish exports to the African market. Egypt ranked second in Africa among importers of Polish agri-food products. Egyptian consumers appreciate the quality of not only Polish wheat, but also milk products – that is cheeses and curds. Moreover, we recorded again a significant increase in fruit exports: apples, pears and quince. It also gives us satisfaction that frozen vegetables and dried pulses of leguminous plants produced in Poland find more and more buyers in Egypt.

Polish-Egyptian cooperation in the agricultural sector is developing dynamically. We can see growing interest in tightening this cooperation at both governmental and business level. Bilateral relations at the level of agriculture ministers and heads of authorities responsible for food safety in both countries have intensified for several years. Polish firms are increasingly interested in developing joint projects with Egyptian partners. The Polish Ministry of Agriculture supports businesses in their promotional activities on the Egyptian market, by organizing trade mission and taking part in trade fairs – we regularly participate in the Food Africa exhibition in Cairo. We are convinced that the potential of the Polish side is a basis for further development of our cooperation, irrespective of what we have already achieved.

Considering the importance of our economic partnership, Egypt has been selected as one of the 14 non-European target markets where our promotional activities will be focused under the plan for the promotion of agri-food products in 2017.

You are welcome to get familiar with the Polish agri-food products which will be presented during the Food Africa fair in Cairo in April 2017. And we hope a visit to Poland will be paid by Egyp• tian partners.

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POLAND IS A RELIABLE PARTNER FOR EGYPT Tadeusz Kościński, Deputy Minister of Economic Development

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or many years Egypt has been a valued economic partner for Poland, both in Africa and throughout the Arab world. The origins of diplomatic relations between our two countries date back to 1927. This means that this year marks the 90th anniversary of their establishment.

Therefore, we can say that Poland has been maintaining diplomatic relations with Egypt longer than with any of the other Arab countries. During these 90 years our bilateral contacts have been friendly and without any interruptions or disruptions.

With satisfaction we accept the intensification, which has been in progress since 2015, of the bilateral political and economic dialogue.

There have been many visits of representatives of our countries, including a delegation of the Arab Republic of Egypt in April 2016.

What has gained our remarkable recognition are the principles of a new programme for economic development of Egypt - adopted by its authorities and presented at an international conference in Sharm El-Sheikh in March 2015. In its leading slogan "Egypt, the Future" we can see a place for our help in the process of implementing the ambitious objectives of this programme. Polish companies have the appropriate offer of commercial, service and investment cooperation to successfully engage in the execution of many projects under the programme.

Poland perceives Egypt as one of the most attractive economic partners in the MENA (Middle East and North Africa) region. This choice - if we look closer at the basic data - turns out to be obvious.

This is one of the largest countries of the African continent, with a stable political situation, a considerable economic potential, extensive plans for modernization and the development of the economy, with more than 90 million potential consumers.

One of the most effective business strategies is consistent presence in a given market. Therefore, every year we actively present Polish exports on the Egyptian market, taking part, among others, in international fairs and exhibitions, trade conferences and seminars.

And above all - through the exchange of trade missions. Thanks to these ativities, goods trade between Poland and Egypt has been steadily increasing. According to preliminary data for exports and

imports between our countries in 2016, the value of trade amounted to nearly USD 492 million, ranking Egypt in second place among our trade partners for Polish exports to the African continent - just after the Republic of South Africa.

It is worth focusing attention on the Polish governmental project Go Africa, enjoying the growing interest of Polish entrepreneurs.

Its aim is to revive economic cooperation with African countries, both in terms of trade, services and investment. Egypt’s membership in a number of preferential agreements with countries in Africa and the Middle East as well as numerous business contacts of Egyptian entrepreneurs with their African and Arab partners could contribute to the enhancement of the Polish presence on the African continent and in Arab countries.

We offer Egypt a number of directions for the development of mutual cooperation. Poland – having a long tradition of production – has modern industry and is a European leader in many sectors. This includes the automotive industry, the production of modern tractors, machines and equipment for agriculture and for food processing. Our construction and finishing materials are recognized in the world. We can offer cooperation in many other areas, including the mining, metallurgical, electrotechnical, ICT, railway and pharmaceutical sectors, in the production of household appliances, as well as in the shipbuilding industry.

While looking for new directions of cooperation development, it is worth pointing to hitherto unused form, which is still relatively small mutual investment engagement. We encourage entrepreneurs from both countries to implement such ventures. Polish companies are interested in participating in the development of the Egyptian state sector and private industry. I hope that they will be able to support the process of modernization of the Egyptian economy.

I am glad that Poland is a reliable partner for Egypt. We are a stable, steadily growing and becoming more and more innovative economy. I encourage you to seek joint Polish-Egyptian business projects, not only realized in our countries, but also in third country markets. Together we can do a lot and strengthen our po• sition in the world. polish market

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90 YEARS OF

DIPLOMATIC RELATIONS Michał Murkociński, Ambassador of the Republic of Poland in Egypt

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n 2017 we are celebrating the 90th anniversary of the establishment of diplomatic relations between Poland and Egypt. Interestingly, the main area of our ​​ bilateral cooperation before World War II was trade. In 1930, the first Member of Parliament of the Republic of Poland in Egypt, Count Juliusz Dzieduszycki, negotiated and signed an agreement with the government in Cairo in this regard. Noble Egyptian cotton was being imported to Poland, while the coal and steel products were being exported to Egypt. Today’s economic cooperation between Poland and Egypt should be assessed positively, although certainly the trade turnover, approx. USD 500b a year, does not reflect the potential of both sides. The same applies to direct investments, which from the Polish side focused on tourism, whereas from the Egyptian side in Poland – on logistics of the supplies of seasonal fruit and vegetables. One should remember that Egypt is a market of over 90 million consumers, whose number grows every year by more than 2 million! Thus, e.g. the manufacturers of motor vehicles and spare parts are systematically increasing the export to Egypt, also from Poland.

Last year, it accounted for almost a third of our exports. Hovewer, traditionally our flagship products in Egypt are agri-food products. For instance, in the last three years the exports of apples from Poland has increased fourfold. We are also a significant supplier of wheat. What makes us happy is the presence, on the store shelves in Cairo, of Polish pasta, cereals, and most recently, for example, sic! - tea and coffee produced in Poland. We are also present in the market of cosmetics and high-end clothing.

Here I would like to express my satisfaction with the activity of representatives of economic self-government, especially polish market

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Krajowa Izba Gospodarcza (the National Chamber of Commerce) and Afrykańsko-Polska Izba Handlowa - „Pro-Africa” (the African-Polish Chamber of Commerce - "Pro-Africa").

Organized by them recent trade missions give hope to revive the Polish-Egyptian business contacts. With interest we noted a letter of intent signed by Pomorska Specjalna Strefa Ekonomiczna (the Pomeranian Special Economic Zone) with the newly created Suez Canal Economic Zone. It is a very interesting initiative, and the Organization for Security and Co-operation in Europe together with the EU delegation in Egypt have launched a project entitled "Supporting the Development of the Suez Canal Economic Zone [SCZone]." This brings new opportunities for cooperation between Polish and Egyptian entities, also in the scope of trainings and broader exchange of experience and information.

An important sector of the Egyptian economy is the energy and mining industry. In the nearest future the construction of the first coal power plant will be launched in Egypt. The authorities also focus on the development of renewable energy such as solar technologies, wind power plants and the energy industry based on biofuels. In these areas, Polish companies have much to offer, hence, I hope they will benefit from the possibility of entering the Egyptian market.

As I mentioned earlier, the agri-food sector has a huge potential for development. Therefore, this year, in April, at the international exhibition "Food Africa Cairo in 2017" Polish national exhibition will be held. I hope that our producers will use this opportunity to present the richness of the Polish offer in • this area.

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WE HAVE ONLY POSITIVE RELATIONS Hosam Rafik Mohamed Alkaweesh, Ambassador of Egypt to Poland

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elations between Poland and Egypt have continued for many years and such trade missions as the one today may only strengthen them. This is why our President Abdel Fattah Saeed el-Sisi has invited Poland’s President Andrzej Duda to visit Egypt. Since I was appointed Egypt’s ambassador to Poland I have believed that our countries have only positive relations – not only in the sphere of business, but also culture. I hope that we will continue all the time to tighten them. A meeting has recently been held with the president of the Suez Canal Authority, a very important place on the economic map of Egypt. Today we are playing host to the governor of Ismailia, which is located on the border of the Canal. We are looking forward to see fruitful cooperation between Polish and Egyptian firms so that we can have good and effective meetings. We also invite Polish firms to Egypt. I wish to thank the Polish side for excellently organizing the mission and taking a good care of our delegation. I promise there will be many more trade missions from Egypt to Poland.

The Egyptian minister of trade and industry Tarek Kabil will arrive in Poland in March 15-18 with a group of firms interested in cooperation with Polish businesses. I am very glad that the governor of Ismailia has found time so that we could introduce Polish entrepreneurs to him personally. Once again, thank you very much for the very good reception and exemplary organization of the mission.

•

WE ARE LOOKING FORWARD TO SEE FRUITFUL COOPERATION BETWEEN POLISH AND EGYPTIAN FIRMS SO THAT WE CAN HAVE GOOD AND EFFECTIVE MEETINGS.

Address at the Economic Forum Poland-Egypt, February 16, 2017

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POLAND - EGYPT. NEW SPACE FOR COOPERATION Tomasz Pisula, President of the Polish Investment and Trade Agency

Polish-Egyptian economic cooperation has an almost century-old tradition. In the 20s of the last century, Polish engineers were participating in important industrial projects and in the building infrastructure on the River Nile, while Egypt was exporting fruit and jewellery onto the River Vistula. Today, for Poland Egypt remains an important trading partner. The trade turnover amounting to EUR 444m per year puts it in third place in Africa, after the Republic of South Africa and Morocco.

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oland sells to Egypt three times more than it imports. The impulse to develop exports to this northern African country was the Russian embargo, which has mobilized Polish manufacturers to search for new, often distant, markets.

Food is what we mainly sell to Egypt. Among the top Polish bestsellers there are: wheat, apples and frozen vegetables as well as mechanical and electrical equipment and transportation vehicles. On the other hand, we buy in Egypt products made of plastic and caoutchouc, of plant origin and base metal.

However, the bilateral economic cooperation does not finish at trade. Polish companies are increasingly interested in investment & cooperation projects, including the sectors of tourism services, business brokerage, information technology, natural resources. Poland is also interested in construction investments, as well as in the modernization and development of railway infrastructure in Egypt.

The Ministry of Economic Development also considers the sector of oil and gas to be the areas with high potential for cooperation between Poland and Egypt. What appeared along with the discovery of new deposits in these industries is a demand for systems, drilling equipment and machines for the production, distribution and processing of these raw materials. The Ministry also points to the increased interest of the

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Egyptian partner in imports, of car components. Poland is a growing automotive hub where, next to big concerns, there are also smaller manufacturers who produce under their own brand or are subcontractors to larger players. Thanks to them, we are increasingly likely to become in the minds of foreign customers the country specializing in the production of parts for cars and commercial vehicles.

Interest in business cooperation is not one-sided. Last month, the Suez Canal Special Economic Zone signed an agreement with the Pomeranian Special Economic Zone, under which an industrial-technological park for Polish companies is to be built in the region of the Canal.

2017 may be crucial for the development of bilateral economic cooperation. We are celebrating the 90th anniversary of the establishment of diplomatic relations between Poland and Egypt, and the 80th anniversary of Polish archaeological presence in Egypt. Still in March, in Warsaw, we are hosting Minister of Trade and Industry of Egypt Tarek Kabil. During the Minister’s visit, the Polish Investment and Trade Agency will be holding a Polish-Egyptian Economic Forum. Visits at the governmental level highlight the importance of economic relations. Those between Poland and Egypt still have room to • grow.

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BUSINESS CANNOT EXIST WITHOUT GOVERNMENTAL AGREEMENTS Abdelaziz Elsherif, Commercial Counsellor of the Embassy of Egypt, talks to Ewelina Janczylik-ForyĹ›.

On the eve of a trade mission to Poland to be led by Egyptian Minister of Trade and Industry Tarek Kabil on March 15-18, how would you describe relations between our countries?

Until recently, there was a strong lack of awareness in both countries about each other.

Egypt was perceived by Polish people only as a tourist destination. And for Egyptians Poland was just an Eastern European country.

But this stereotyped image has been changing dramatically. Egypt is now increasingly seen by Poles not only as a tourist destination, but also a place for business.

PM

What are the prospective areas for our cooperation?

We have managed to present Egypt as a hub for Polish companies to start their own business in the whole of the African continent. Egypt is a big market. We have almost 95 million inhabitants and are connected to another 19 countries in Africa through a contractual agreement called COMESA where you enjoy free access with your products to these countries if you are located in Egypt. I know that Polish companies are trying hard to penetrate the African continent.

It is not an easy mission. But if you find a reliable partner it is going to be much easier. And so we present Egypt as a reliable partner for Polish companies and a gateway to Africa. Plus, I see that the Polish market needs a lot of products, like citrus fruits. Instead of buying them from some other countries at high prices, Poland can buy them from Egypt, which is a strong producer of citrus of better quality and low prices. We have one success story, which is an exchange between Polish companies producing apples and Egyptian citrus producers. This kind of exchange has already succeeded. Through this cooperation we managed to export around 12,000 tonnes of citrus fruit to Poland last year and import almost 32,000 tonnes of apples from Poland. It is a win-win situation for the two countries.

PM

Apart from fruit, are there any other areas of our cooperation, like for example furniture, clothes, ceramics, glass?

There is already cooperation in all these sectors. I have just mentioned fruit as an example of success.

PM

It is perhaps the most important and spectacular example.

True, fruit and vegetables, and foodstuffs in general. In other sectors, we can mention for example engineering products. Poland has a history and talent in this sector. We buy certain products from Poland in this sector, but also offer Polish companies opportunities to start locating their production in Egypt intended for both the Egyptian market and the wider African market. We also have some kind of cooperation in minerals, with Poland buying huge quantities of rock phosphate from Egypt. We buy coal and a lot of machinery for production from Poland, but also washing machines, dishwashers and cosmetics. I can see that the value of trade is growing and in 2016 reached almost USD0.5 billion, which is not a very high figure yet. But we are looking forward to have USD1 billion by the end of 2017. Reaching this target will be very easy because we have already managed to put companies together. And they are really working hard to promote commercial and economic relationships between themselves.

I see lots of visits between the two countries on both levels - governmental and business. This will be translated into numbers.

PM

How are you going to encourage Polish business to invest in Egypt?

Polish companies really want to go abroad. They are not concentrated any more on the internal market, which was one of the characteristics of the Polish economy. It used to be self-centred because the Polish market is very big - whatever you do you will find a place for your product.

PM

But I think Polish companies are afraid of investing on new market.

Any company in the world has this kind of fear to invest abroad. It is one of the risks, a psychological risk inside the entrepreneur, when they would like to go abroad and invest in an unknown environment. We are trying to minimize this kind of uncertainty, as far as Egypt is concerned. We do not give investors just general advice. We try to give them specific projects, connect them with reliable local partners. We are connecting the two parties. Big multinationals sometimes do not need it. But it is needed for small and medium-sized companies, which make up a majority. A new investment law is now being adopted by our parliament. It will come into force in a few weeks and it gives investors even more incentives.

PM

We are talking about Polish companies which are going to invest in Egypt. And how about Egyptian companies? Are they interested in the Polish market?

Yesterday, I visited one of the biggest call centres in Warsaw. It is operated by an Egyptian company. They are investing here and expanding their activities. They have even acquired a 20% stake in a big Polish company operating in the food sector. Another Egyptian company is conducting negotiations to buy a Polish furniture company. Last year, five Egyptian companies opened offices in Warsaw because they intend to invest here and promote their products through full presence in the market.

An Egyptian company is to open distribution centres for their own products in Poland in collaboration with a big Polish group. On the other hand, they are opening distribution centres for Polish products in Egypt as well. I can see that more and more Egyptian companies are interested in the Polish market. They are willing to re-invest. The investment in the call centre is the biggest one from Egypt in Poland right now. • PM

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IT WILL BE A GOOD AND FRUITFUL TIME President of Pomeranian Special Economic Zone Aleksandra Jankowska talks to "Polish Market" about the agreement with the Suez Canal Economic Zone and development opportunities for Polish companies.

Just a month ago, the Pomeranian Special Economic Zone (PSSE) initiated cooperation with a Egyptian Economic Zone. How did this happen?

For several months we had been talking with the Egyptian side to work out the best possible plan for the development of both institutions and countries. Our partners established contact with us not only because of the openness and dynamism of the Pomeranian Special Economic Zone in building international business relations, but also because of our cooperation on the New Silk Road project. This resulted from the need to join forces on the matter of freight handling and logistics centres, because, as it has been repeatedly stressed by the Egyptian side, the Pomeranian Special Economic Zone lies both on the overland and maritime Silk Road. In Poland, we are the first economic zone, which saw a chance for the Polish economy and Polish companies using the potential of the Suez Canal and the economic zone associated with it.

PM

Tell us what exactly the two sides are interested in? What new initiatives are waiting for Poland?

Both from an economic and geopolitical point of view, the situation of the Suez Canal is strategically important. And so we should take this agreement. The chances that are created by the established cooperation with Egypt could, in the near future, bring tangible, positive effects not only for the Pomeranian Zone. The most important challenge for me, on the implementation of which I will be working very hard, is to build the Polish Industrial Park in Egypt. I think that the creation of a logistics centre with the participation of Polish companies in the middle of the Silk Road is the opportunity next to which we simply cannot walk on by. Signing the agreement brings benefits for the whole region, provides opportunities not only PM

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From left: Director for International Economic Relations at the Pomeranian Special Economic Zone Marta Dargas Draganik, Egypt’s Ambassador to Poland Hosam Alkaweesh, Chairman of the General Authority for Suez Canal Economic Zone Ahmed Darwish, President of the Pomeranian Special Economic Zone Aleksandra Jankowska, Commercial Counsellor and Head of the Commercial Office at the Egyptian Embassy in Poland Abdelaziz Elsherif, and Director of the Gdańsk Science and Technology Park Artur Badeński

for exports, but also in the production and sale of Polish goods on the Silk Road. Our country will also benefit in the scope of the Egyptian investment in the Pomeranian Special Economic Zone, as the devaluation of the Egyptian currency has contributed to a significant increase in interest in doing business in the European Union.

And what does the Egyptian side expect in return?

As Dr Ahmed Darwish, Chairman of the Suez Canal Economic Zone, said during our latest meeting – it is a win-win situation. Polish industry will be able to anchor in the African and Arabic markets, and Egypt will benefit from Polish technological innovations in the field of petrochemicals, pharmaceuticals, agriculture and shipbuilding. Not without significance for our partners is also Polish food, the quality of which is touted around the world. In Egypt, the most popular are our cheese and apples.

PM

And what will the future bring? What will be the next step?

The agreement signed by the Pomeranian Special Economic Zone is the beginning of, I hope, long-term cooperation. A working group that will be responsible for the implementation of the plan discussed has been established in order to implement the agreed undertakings.

We also intend to organize a trade mission with the participation of Polish entrepreneurs interested in starting their investment project in the region of the Suez Canal. I think that 2017 will be a good and fruitful time for the development of economic relations between Poland and Egypt. I am convinced that all initiatives and meetings at the governmental level, which will occur in the near future, including a visit to Poland by Minister of Trade and Industry of the Arab Republic of Egypt Mr Tarek Kabil will strengthen economic relations between the countries.

• PM

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EGYPT

A RELIABLE PARTNER FOR THE FUTURE Filip Suś, President of the African Polish Chamber of Commerce - „ProAfrica”

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he African-Polish Chamber of Commerce ProAfrica supports and promotes cooperation between businesses from Poland and African countries. It builds new and strengthens existing business relations. It encourages joint projects – one of them is a specialized exhibition of products made by African firms at the Poznań International Fair – and sharing business practices. ProAfrica facilitates first contacts with potential business partners from African countries and, through its further activity, makes this cooperation dynamic, professional and comfortable. As a Supporting Member of the Council of Investors in Africa, set up at the initiative of Jan Kulczyk, the African-Polish Chamber of Commerce ProAfrica is proud to support this unique platform for the exchange of ideas and practical experience designed to further economic relations between Poland, Europe and Africa.

At present, ProAfrica dynamically cooperates with businesses from several African countries, like for example Angola, Zimbabwe and the Ivory Coast. This group also includes the Arab Republic of Egypt. Cooperation with this country has continued for over two years. It is very dynamic and this effort has already produced tangible results. In 2016 alone, there were three trade missions of Polish entrepreneurs to Egypt and two missions of Egyptian entrepreneurs to Poland. The biggest mission visited Poland in autumn 2016. The highlights of the visit were the Polagra Food fair and the Day of the Arab Republic of Egypt, which was held in Poznań for the first time in the history of Polish-Egyptian relations. One of the most important developments on that day was the signing of a letter of intent between ProAfrica and the Ismailia Chamber of Commerce.

ProAfrica was the first organization in Poland to have signed such an agreement. It led to a visit by the president of ProAfrica and its members to Ismailia in November 2016 and numerous business talks. They have continued to this day and one of their results is a letter of intent signed on February 17, 2017 on establishing a Polish-Egyptian company to produce powdered milk.

We also cooperate in a similar way with businesses which are members of other Egyptian chambers, based for example in Cairo and Alexandria. We expect that the firms they recommend as business partners for our members are reliable and good members of these organizations, members who treat cooperation seriously and respect their European partners. At the same time, based on our experience and internal analyses, we guarantee our Egyptian partners that our members are reliable business partners ready to conduct solid cooperation with respect for rights, customs and cultures and that their goal, apart from successful business deals, is building positive business relations. Many of these things are possible thanks to the friendly attitude of central and local government authorities of the two countries as well as diplomats who represent Poland in Cairo and Egypt in Warsaw. However, none of these authorities or chambers will do the job of individual businesses which have to meet each other and work out rules of cooperation.

In the case of Poland and Egypt, the issue is simpler because our countries have cooperated for several decades and know each other. This cooperation is constantly developing in the area of not only exports and imports, but also investment. Our Chamber’s experience alone shows that we can boast of numerous undertakings in which firms from Poland and Egypt have worked together. These include the powdered milk plant mentioned above, and sales outlets for Egyptian fruit and vegetables in Poland and Polish fruit and vegetables – mainly apples - in Egypt. Moreover, there is daily exchange of goods in the food, industrial, chemical, medical and metallurgical sectors. At the same time, work is underway on joint business solutions in the maritime sector, services and research. This range is gradually expanding, but there is still a number of untapped sectors. Among such prospective areas is the mining industry (specialist equipment), automotive industry (parts and components), paper industry and tools industry.

Although the Arab Republic of Egypt has been our wellknown and reliable partner for 90 years, it still remains a prom• ising market offering more prospects for cooperation. polish market

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ACTIVITY OF THE POLISH CHAMBER OF COMMERCE ON THE EGYPTIAN MARKET CONTRIBUTION TO THE CELEBRATIONS OF THE 90TH ANNIVERSARY OF POLISH-EGYPTIAN DIPLOMATIC RELATIONS

Ambassador Jerzy Drożdż, Director of the Office for Foreign Relations Polish Chamber of Commerce

C

ooperation between Polish and Egyptian businesses is developing favourably on the basis of business meetings held every year during visits to Poland by Egyptian delegations. Such economic forums were held during a visit to Poland by the president of Egypt in 2008 and visits paid by the Egyptian minister of trade and industry in 2008 and 2009.

The Polish Chamber of Commerce (KIG) also organizes trade missions to Egypt. In 2015, Polish business people representing the food, pharmaceutical, veterinary, electronics, railway and chemical sectors went on a mission to Cairo and Alexandria. The business mission was headed by KIG’s vice-president while the Ministry of the Economy supported the undertaking.

A deputy minister of the economy led the official delegation.

In 2016, we played host to two delegations from Egypt: representatives of the Egyptian-Polish Businessmen Association paid a visit to Poland in the first half of the year while a delegation of the Union of African Chambers of Commerce, Industry, Agriculture and Professions came to Poland in the second half of the year. The delegation took part in the international agricultural industry fair Polagra in Poznań. The Egyptian business people represented the food, agricultural machines, furniture, construction, jewellery and clothing sectors. After the official part of the meeting, the Egyptians held talks with their prospective Polish partners.

In February 2017, we organized a seminar at the Polish Chamber of Commerce on the occasion of a visit to Poland by Minister Ahmed Darwish, Chairman of the General Authority for Suez Canal Economic Zone. During the seminar Egypt’s business project whose value is to reach around USD100 billion by 2020 was presented along with a proposal for Polish firms to take part.

Also in February 2017, the Economic Forum PolandEgypt was held during a visit to Poland by a delegation from Ismailia and Alexandria composed of local entrepreneurs headed

by Governor of the Ismailia Governorate Yassin Tahir and President of the Ismailia Chamber of Commerce Akram Elshafei. The

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host of the meeting was Vice-President of KIG Andrzej Piłat.

In his welcome address to the entrepreneurs and official guests, he stressed there were great hopes for the development of mutual ties between our nations, with the active participation of Polish authorities. The governor of Ismailia praised Poland as a role model in terms of economic development.

At present, we are preparing a Polish-Egyptian roundtable to accompany a visit to Poland by the Egyptian minister of trade and industry, with the participation of selected Polish and Egyptian companies and the official delegation. The roundtable will be held on March 16. The Polish-Egyptian Economic Forum, organized by the Ministry of Economic Development and Polish Investment and Trade Agency (PAIH) in conjunction with KIG as a partner, will be held on the next day. Bilateral talks between Polish and Egyptian companies will be an integral part of the Forum. Agreements between KIG and the Federation of Egyptian Chambers of Commerce on cooperation and on establishing a Polish-Egyptian chamber of commerce will be signed during the meeting.

The Polish Chamber of Commerce is the organizer of the Euromed Business Roadshow Green Solutions in MED, which will be held in Cairo on April 1-3. The goal is to actively support trade and investment between European Union countries and the Arab Republic of Egypt.

The event is intended mainly for companies operating in the energy sector: energy innovation, renewable energy sources and environmental solutions. The event will be held as part of the Euromed Invest project funded by the European Commission and carried out by a Polish-Czech-Italian-Egyptian consortium.

The leader of the project is the Polish Chamber of Commerce.

Participants in the mission will have an opportunity to establish cooperation with energy companies from four countries taking part in the project, conduct B2B talks during thematic seminars, and participate in study visits to the solar energy centre Arabian Industrialization Authority and a wind energy • centre - Zafarana Wind Farm.

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INSTITUTE OF AVIATION OPEN FOR SCIENTIFIC EXCHANGE AND THE IMPLEMENTATION OF NEW IDEAS Sylwester Wyka, Director of the Center of Transportation and Energy Conversion, Institute of Aviation

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or many years, the teams of engineers from the Institute of Aviation have been successfully implementing global projects. The basis of international competitiveness of the Institute of Aviation is well-educated academic staff, modern research infrastructure and expertise of the corporation. These factors allow the Institute of Aviation to achieve competitive successes of international character. During last year's international fair of the energy sector ELECTRICX Cairo 2016, we had the opportunity to present what we can offer to the Egyptian market. For us this is a promising direction for many reasons. During many business meetings with Egyptian partners we showed that many of our current activities are directed at areas that are crucial for the development of Egypt and strengthening its leadership position in the Middle East. Among the potential areas of cooperation we primarily distinguished renewable energy sources, having in mind both solar and wind power.

With the Middle Eastern market in mind, our engineers developed a Mobile Hybird Energy Power Source– a portable energy accumulator with a hybird power source, which has been appreciated because of its mobility and possibility of any configuration. The device is powered by either renewable energy (solar panels, wind) or by a conventional power source, which is a diesel generator. It can be used as a reliable source of energy in areas far from large cities, such as villages and military bases in the desert.

Another potential area of cooperation are wind turbines. The Institute of Aviation is involved in projects aimed at the development, design and construction of such turbines. Our attention is focused primarily on small wind turbines with a vertical axis of rotation (VAWT) for off-grid use or used by small networks of electricity consumers. There is a growing interest in such turbines.

We also see potential for cooperation in increasing the efficiency of solar panels adapted to work in the Egyptian climate. Our engineers offer knowledge concerning the implementation of photovoltaic panels, protection against sandy dust and the systems of automatic panel cleaning.

Our knowledge is based primarily on modern solutions. There are over 30 modern testing laboratories operating within the Institute of Aviation. This is where we conduct specialized research in the field of aviation, engines, turbines, materials and composites, and also energy conversion and storage. Our clients are the largest, world giants in the airline and energy industries. Therefore, we believe that our wide range of research will be of interest also for the Egyptian engineers who want to take advantage of the most modern solutions.

We are also open to the scientific exchange and implementation of new ideas. The Institute of Aviation is willing to cooperate with the Egyptian universities and research institutes in the area of creating and implementing valuable ideas, solutions and products that meet the Polish and Egyptian needs in the field of innovation and joint research projects.

The Institute of Aviation also has extensive expertise in the field of remote sensing. Our engineers develop orthophotomaps and vector maps on the basis of aerial and satellite images. For this purpose we use multispectral cameras, as well as traditional devices mounted on unmanned and manned aircraft. We use these aerial and satellite photographs for the detection and identification of objects. This allows us to track changes, as well as the estimation of biophysical parameters for the given site. We expand the analysis of photographs also with advanced options, such as solar exhibition (with the use of accurate 3D models).

These data can be used in Egyptian conditions, for example to select the best location a planned investment project. We also provide analyses related to agriculture – forecasts concerning yields, fertilizing and the estimates of biomass.

The engineers of the Institute of Aviation have the suitable experience, knowledge and skills to provide customers solutions of the highest quality. We are convinced that our expertise, backed by multiannual good Polish-Egyptian relations will allow for fruitful business and research & development cooperation. •

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EGYPT

INFORMATION ON ECONOMIC RELATIONS WITH POLAND The Arab Republic of Egypt is a parliamentary republic. Until 2015 the country had a bicameral parliament, with the House of Representatives as the lower chamber and the Shura Council as the upper chamber. This system was abolished by the new election law of June 2014 and a unicameral parliament, with 596 seats, was elected in December 2015.

THE HEAD OF STATE is President Abdel Fattah Saeed el-Sisi (since June 8, 2014) PRIME MINISTER: Sherif Ismail (since September 12, 2015) MINISTER OF FOREIGN AFFAIRS: Sameh Hassan Shoukry MINISTER OF TRADE AND INDUSTRY: Tarek Kabil MINISTER OF FINANCE: Amr el-Garhi MINISTER OF INVESTMENT AND INTERNATIONAL COOPERATION: Sahar Nasr MINISTER OF PETROLEUM: Tarek el-Molla POLAND’S AMBASSADOR TO EGYPT: Michał Murkociński EGYPT’S AMBASSADOR TO POLAND: Hosam R. M. Alkaweesh AREA: 1,001,450 sq km POPULATION: ca. 94.7 million (estimation of July 2016) MAIN CITIES: Cairo (capital city, ca. 19 million people), Alexandria (ca. 5 million people) MAIN MINERAL RESOURCES: crude oil and natural gas, iron ores, phosphorites, manganese, limestone, gypsum, asbestos, lead, zinc, granite and marble deposits CURRENCY: Egyptian pound (EGP); average exchange rate in 2016: USD1=EGP9.71 (EGP7.71 in 2015) GDP: It is estimated that the Egyptian economy grew 3.8% in the financial year 2015/2016 (12 months to the end of June 2016) versus 4.2% in the financial year 2014/2015. The relatively low GDP growth in the years 2012-2014 resulted mainly from an unfavourable impact of political developments and an unstable internal situation, which continued in the country until 2014 following the 2011 developments (Arab Spring).

GDP structure in 2016: services – 52.9%, industry – 35.8%, agriculture – 12.3%. In the financial year 2010/2011, the private sector contributed 62.3% to Egypt’s GDP.

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BASIC MACROECONOMIC INDICATORS 2011/12

2012/13

2013/14

2014/15

2015/16*

GDP (PPP, USD billion)

878.5

911.6

1,021

1,064

1,105

GDP per capita (PPP, USD)

n/a

10,800

11,800

12,000

12,100

GDP (% increase)

2.2

2.1

2.2

4.2

3.8

Inflation (%)

7.1

9.0

10.1

10.4

12.1

Unemployment

12.7

13.4

13.0

12.8

13.1

Goods exports (USD billion)

24.9

24.8

26.9

19.0

14.7

Goods imports (USD billion)

60.3

59.2

70.5

57.2

50.1

FDI in Egypt (USD billion) Cumulative value

1.2

1.3

2.4

5.2

4.9 94.5

Egypt’s direct investment abroad (USD billion) Cumulative value

0.8

0.4

0.2

0.5

0.7 8.0

Foreign debt (USD billion)

38.7

48.8

45.8

44.6

50.7

Foreign exchange reserves, incl. gold (USD billion)

14.9

17.0

14.5

15.5

15.1

*/ estimated Source: Economist Intelligence Unit, CIA, BMI, Central Bank of Egypt

EGYPT’S FOREIGN TRADE IN 2016 Exports – value: USD14.73 billion; drop by ca. 22.5% year on year; main markets (2015): Saudi Arabia (9.1% of Egypt’s total exports), Italy (7.5%), Turkey (5.8%), UAE and United States (5.1% each), United Kingdom (4.4%), India (4.1%) Goods structure: oil and oil products, vegetables and fruit, cotton, textiles, metal products, chemicals, processed food Imports – value: USD50.07 billion; drop by ca.

18% year on year; main markets (2014): China (13% of Egypt’s total imports), Germany (7.7%), United States (5.9%), Turkey (4.5%), Russia and Italy (4.4% each), Saudi Arabia (4.1%) Goods structure: machines and equipment, food, chemicals, products of the wood industry, fuels Foreign direct investment in Egypt – cumulative value: ca. USD94.5 billion at the end of 2016; main sources of FDI into Egypt: EU (ca.

50% of the total value, chiefly United Kingdom and Belgium), United States (23%), Arab countries (ca. 12%, chiefly United Arab Emirates

and Qatar); main sectors: banking, tourism, oil and natural gas, real estate In the World Bank’s Doing Business 2017 report, which ranks countries according to their ease of doing business, Egypt moved up to 122th place among 190 economies (131st place among 189 countries in the Doing Business 2016 report).

Membership in international political and economic organizations: United Nations Organization, Arab League, African Union, WTO, IMF, Organization of Arab Petroleum Exporting Countries (OAPEC), African Development Bank (AfDP), Islamic Development Bank (IDB), European Bank for Reconstruction and Development (EBRD), International Bank for Reconstruction and Development (IBRD), UN agencies – FAO, UNCTAD, UNIDO, UNESCO, UNRWA Preferential agreements: with the EU (effective since 2004), EFTA (2007), GAFTA (Greater Arab Free Trade Agreement – 1998), COMESA (Common Market for East and South Africa – 1999), Agadir Agreement (Egypt, Morocco,

Tunisia, Jordan – 2007), bilateral agreements on free trade with Lebanon, Morocco, Tunisia, Jordan (in 1999 each), Libya (1991), Iraq (2001) and Turkey (2007) Legal and treaty framework for economic cooperation • Association agreement EU-Egypt: its trade part came into force on January 1, 2004, the full agreement came into force on June 1, 2004.

Bilateral agreements with Poland: • on mutual support and protection of investment (signed in Cairo in 1995, came into force in 1998) • on avoiding double taxation (signed in Warsaw in 1996, came into force in 2001) • on tourism cooperation (signed in Cairo in 2011, came into force in 2011) • on cooperation in science and technology (signed in Cairo in 2000, came into force in 2001) • on establishing regular air connections (1956) • on maritime transport (1977) polish market

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EGYPT’S TRADE WITH POLAND IN 2012-2016 USD million

2012

2013

2014

2015

2016*

Growth (%) 2015=100

TURNOVER

339.1

384.8

416.6

498.7

492.0

98.7

EXPORTS

203.2

275.9

278.3

390.3

370.3

94.9

IMPORTS

135.9

108.9

138.3

108.4

121.7

112.3

BALANCE

67.3

167.0

140.0

282.0

248.6

Source: GUS */ preliminary data

In 2016, as in 2015, Poland’s major export items were: • plant products (wheat, apples, frozen and dried vegetables): USD92.6 million, 25% share in Polish exports, 39% drop on 2015; • mechanical and electrical equipment (mainly washing machines, dishwashers, cables and wires, engines and turbines, fittings, lighting equipment, transformers, refrigerating equipment): USD66.9 million, 18.1% share, 22% increase; • means of transport (mainly passenger vehicles and tractors): USD53.4 million, 14.4% share, 23% increase; • products of the chemical industry (medicines, cosmetics, perfumes and cologne, cleaning agents): USD28.9 million, 7.8% share, 4% increase; • mineral products (mainly coal): USD26.6 million, 7.3% share, 96% increase; • products made from base metals (mainly razor blades, steel structures): USD21.1 million, 5.7% share; • food products (mainly tobacco products, chocolate products, sugar): USD16.3 million, 4.4% share; • animal products (mainly cheeses, milk and powdered whey): USD15.9 million, 4.3% share.

Additionally, among significant items were also “various” products (mainly furniture): USD12.7 million, and paper products (paper and cardboard): USD11.1 million.

Poland’s major import items in 2016: • textile materials and products (men’s and women’s clothing, knitted materials, carpets, cotton yarn): USD38.3 million, 31.5% share in Polish imports; • plastic and rubber products (boards, films, etc., ethylene and propylene polymers): USD24.2 million, 19.9% share;

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• plant products (citrus fruit, dried vegetables, plants for the perfume and pharmaceutical sector, garlic, grapes, potato): USD16.9 million, 13.9% share; • products made from base metals (mainly aluminium wire, metal sheets): USD13.6 million, 11.1% share; • ceramic products, glass (mainly glass fibres): USD7 million, 5.7% share; • mineral products (mainly tricalcium phosphates): USD6.9 million, 5.7% share; • food products (mainly coffee extracts, bread): USD6.2 million, 5.1% share.

INVESTMENT COOPERATION One can see relatively large interest on the part of Polish businesses in starting investment cooperation on the Egyptian market, mainly in the tourist sector, trade intermediation, construction, information technology, exploration and exploitation of oil and gas deposits, and modernization and extension of railway infrastructure.

This is reflected in a rise in Polish direct investment in Egypt. According to Egypt’s General Authority for Foreign Investment, at the end of 2012 Poland’s investment (by 68 businesses) reached USD6.2 million. According to data from the National Bank of Poland (NBP), at the end of 2013 Poland’s outward direct investment position in Egypt was USD32.3 million while inward direct investment position was USD15.1 million.

Companies providing services in the oil and gas sector (PNiG and Nafta Piła) and the maritime transport sector (Polski Rejestr Statków) returned to Egypt several years ago after a long absence. Geofizyka Toruń, a company specializing in geological and seismic surveys for the needs of the extraction industry, was also active on the Egyptian market. The largest Polish company operating in Egypt (until June 2014) was Polish Oil and Gas Company

(PGNiG SA). In the first half of 2007, it had been awarded a licence for the Bahariya Block (ca.4,400 sq km) by the Egyptian Petroleum Corporation (EGPC).

Apart from the oil and gas sector, Polish companies are probing for cooperation opportunities in other areas. They are especially interested in the delivery of complete production lines and technologies, setting up joint ventures in such sectors as rail and maritime transport, and the power, defence and food industries.

MARKET ACCESS In the past decade, Egyptian authorities started a programme designed to liberalize economic relations and trade with other countries. In 2004, significant changes were made to the Egyptian customs tariff. As a result, customs duties were reduced for ca. 6,500 tariff items to the average rate of 9%. Further reductions followed in 2007 and 2008.

New simplified rules have been in force since 2005 for the registration of foreign producers exporting their textiles, textile products and ready-to-wear clothes to the Egyptian market.

In the same year, measures were taken to liberalize the meat market. Restrictions on imports of livestock were significantly relaxed.

And in 2006, Egypt eased regulations on imports of meat, and beef products from European countries.

Despite these changes, the Egyptian market is still relatively protected, especially when it comes to imports of consumer goods. Access to imported goods is in some cases restricted by administrative methods, which go beyond the generally accepted foreign trade rules and standards. The Egyptian customs tariff and clearance system leave quite a lot of room for discretion in classifying goods for customs clearance. Regulations on additional charges (sales tax, service and inspection fees) are not quite precise. The same is

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the case with other formalities involved in imports to Egypt.

There are still many specific requirements that imported products have to meet. One of them is the obligation to label goods delivered to the Egyptian market in Arabic – the English language is not sufficient. Since June 2002, under regulation no. 155, the General Organization for Import and Export Control (GOIEC) at the Ministry of Trade has been responsible for imports procedures, however taking into account the powers of the Ministry of Health and/or Ministry of Agriculture.

On March 16, 2016 decree no. 43/2016 of the Ministry of Trade and Industry came into force. According to the European Commission, the decree is inconsistent with the Association Agreement between Egypt and the EU. Under the decree, only firms/producers registered with a new register kept by GOIEC will be allowed to import 25 categories of goods intended for retail sales in Egypt. The goods include: milk and milk products, processed and dried fruit, oils and fats, confectionery, chocolate products, pasta, fruit juices, mineral water, cosmetics, soap and washing powder, kitchen accessories, bathroom equipment, toilet paper, diapers, ceramic tiles, glass tableware and kitchenware, steel bars, household appliances, furniture, bicycles and motorcycles, watches, bulbs, toys, clothing and textiles, carpets and footwear.

ACTIVITIES SUPPORTING THE DEVELOPMENT OF BILATERAL ECONOMIC RELATIONS Important visits were paid to Poland by the highest-ranking Egyptian officials in 2008 and 2009, including in particular a March 2008 visit by Egyptian President Hosni Mubarak. Another significant development was a visit to Warsaw in February 2009 by the minister of trade and industry, accompanied by an Egyptian trade mission. A business forum was held during this visit. It attracted great interest from Polish businesses – more than 60 firms took part. The planned return visit to Egypt by the president of Poland in November 2009 was called off for objective reasons. Such a visit is planned for the second half of 2017 in connection with the 90th anniversary of establishing diplomatic relations between Poland and Egypt.

In July 2009, deputy Polish Prime Minister and Minister of Economy Waldemar Pawlak visited Egypt to attend the Finals of the Imagine Cup competition sponsored by Microsoft. During his stay in Cairo, he met Egyptian government officials: the minister of

petroleum and minister of communications and information technology.

In 2011-2014 - the period after the outbreak of the Arab Spring - there was stagnation in the exchange of visits by government officials of the two countries. A turning point came in March 2015 when a Polish delegation, headed by deputy Minister of Economy Andrzej Dycha, paid a visit to Egypt to take part in the Egyptian Economic Development Conference, held in Sharm el-Sheikh under the auspices of the president of Egypt.

The Polish delegation was accompanied by a trade mission organized by the Polish Chamber of Commerce (KIG). The mission was composed of around 30 entrepreneurs who took part in two business seminars - in Cairo and Alexandria – and B2B talks.

In 2016, Egypt’s deputy minister of foreign affairs visited Poland in April and Poland’s deputy minister of agriculture Ewa Lech visited Egypt in May to attend the Food Africa 2016 fair in Cairo.

The year 2017, marking the anniversary of bilateral relations, will see an especially large number of developments, visits and contacts between the two countries. Ahmed Darwish, Chairman of the General Authority for Suez Canal Economic Zone, and Yassin Tahir, Governor of the Ismailia Governorate, paid a visit to Poland in February. They both met deputy Minister of Economic Development Tadeusz Kościński. An agreement between the Pomeranian Special Economic Zone and the Suez Canal Economic Zone was singed during a visit to the Pomeranian Special Economic Zone in Gdynia. A trade mission by the Pomeranian Special Economic Zone to Egypt is scheduled for May 2017.

We are now waiting for a visit to Poland, accompanied by a trade mission, by Egyptian Minister of Trade and Industry Tarek Kabil on March 15-18 at the invitation of deputy Prime Minister and Minister of Economic Development Mateusz Morawiecki.

Additionally, the Polish Ministry of Agriculture and Rural Development plans to organize a Polish national stand at the Food Africa fair on April 22-24, 2017. The Polish delegation will be headed by an official of the Ministry of Agriculture.

Trade is the most important sphere of cooperation in Polish-Egyptian relations. Direct presence on each other’s markets and personal contacts between the two countries’ businesses are the most efficient instruments supporting trade development. As a result, annual trade missions to Poland organized by the Egyptian Polish Businessmen Association (EPBA) are very important. EPBA has

operated in Cairo since 1997 and has closely cooperated with the Polish Chamber of Commerce (KIG) and Employers of Poland. EPBA paid their most recent visit to Poland in May 2016. The next visit is scheduled for May 2017.

POTENTIAL AREAS OF COOPERATION The prospective areas of economic cooperation between the two countries include: • oil and gas sector. Owing to the discovery of new deposits, there is demand for equipment, including drilling equipment, devices, machines and components for the production, distribution and processing of these raw materials; • rail sector. The reform and modernization of the railways are among priority tasks of the Egyptian government in the short term. The government has set aside ca. USD1.5 billion for the development of railway infrastructure, including the purchase of new locomotives, repair and renovation of existing rolling stock, modernization of existing railway lines, signalling, control and alarm systems; • automotive sector. Increased interest has been noted in imports of spare parts, components and accessories for motor vehicles, including used ones, especially vehicles manufactured in Poland and Central and Eastern Europe; • and other sectors: machines and tools, chemical products, wood and paper (absence of local raw materials), glass and porcelain products, medical equipment, hospital and laboratory equipment (marginal local production), base metals (mainly steel products, copper, scrap iron and steel), agricultural and food sector, machines and equipment for the food industry (rapid development of the sector, especially of poultry processing).

POLISH ECONOMIC AND TRADE MISSIONS IN EGYPT Embassy of the Republic of Poland – Trade and Investment Promotion Section Address: 8, Ahmed Nessim St., Cairo, Egypt Tel.: +20 2 33379683, 33379687\ Fax: +20 2 37609353 e-mail: cairo@trade.gov.pl website: www.cairo.trade.gov.pl Embassy of the Republic of Poland Address: 5, Aziz Osman St., Zamalek, Cairo, Egypt Tel: +20 2 27367456, 27359583 Fax: +20 2 27355427 e-mail: kair.amb.sekretariat@msz.gov.pl website: www.kair.polemb.net

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Economic cooperation between Poland and the Arab Republic of Egypt is based on the Association Agreement between the EU and Egypt, signed in 2001, as well as on bilateral trade agreements. It might be said that on the tenth anniversary of the conclusion of the Association Agreement between Egypt and the EU, signed in December 2011, a consortium of five Polish companies named Eko Koks, after winning a tender, entered into a contract for the supply of machinery and equipment for the construction of the coke oven battery in Al Nasr Co. For Coke & Chemicals. This contract is worth tens of millions of euros and constitutes the first, out of two, stage of the battery construction. During the first stage of the construction, all the necessary materials and equipment along with the design project and technical documentation are to be provided. The contract also covers the installation of the ceramic materials, experts’ supervision and the client’s staff training. The implementation of this phase of the project is planned to take about 36 months. The second stage comprises the construction of the battery. The new coke oven battery is to meet all applicable norms, including the current environmental protection standards. Because of the considerable value of the project, the preparations for its realization have already begun.

The Eko Koks consortium is made up of Piecexport-Piecbud Sp. z o.o., Przedsiębiorstwo Remontowo Produkcyjne ZK-REM Sp. z o.o., Biuro Projektów KOKSOPROJEKT Sp. z o.o., EKO-PAR Sp. z o.o. and DABSTER Sp. z o.o. The engagement of these companies enables to fulfill the task at the highest level as each of these companies has experience, implemented projects and highly qualified personnel.

In 2012-2016, in the Al. Nasr coking plant, the Eko Koks consortium in a bit smaller composition (Piecexport-Piecbud and Dabster) executed two contracts of a total value exceeding more than EUR 20m. Under these contracts, one of the active batteries was being renovated. The scope of the contracts included the supply of all the necessary materials and carrying out the battery renovation works. All the work was performed by Piecexport-Piecbud.

P i e c e x p o r t- P i e c b u d Sp. z o.o., with its seat in Dąbrowa Górnicza, basing its activity on its legal predecessors’ experience, is one of the country’s leading companies in the field of construction, renovation and modernization of industrial furnaces for the iron & steel, coke, founding, cement and limestone industry.

In this construction sector we operate both in the country and abroad. In 2012–2016, the Piecexport-Piecbud Company was executing the renovation contracts in the coking plant in Egypt. The first implemented contract was worth EUR 1 million and concerned only renovation works. As part of the other two contracts the Company carried out works worth more than EUR 13 million and supplied materials worth more than EUR 5 million.

The years of experience have allowed the Company to work out its own know-how which enables it to successfully implement big projects. The quality of the Company’s services is guaranteed by its Quality Management Systems and Occupational Health and Safety Management System.

The Company specializes in the construction, renovation and modernization of: • coke oven batteries,

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• iron and steel furnaces, • components of energy supply structures, • steel structures and supporting structures for energy facilities, • whole steel structures for flyovers and structures for the power industry, • non-ferrous metallurgy furnaces, • furnaces for the cement and limestone industry.

The Company’s unquestionable advantage and strength is its highly qualified, experienced and determined staff.

Piecexport-Piecbud’s employees have worked in most of the Polish coking plants. Now, the Company is renovating the walls in the Coking Plant in Zdzieszowice.

Przedsiębiorstwo Remontowo Produkcyjne ZK-REM Sp. z o.o., based in Zdzieszowice, from its very beginning, has been constantly developing and expanding its area of operation, while many years of experience have enabled the Company to create its own know-how. Today, the Company renders a comprehensive range of services for the coke, coke-chemical, iron & steel and chemical

industry. It provides a range of research works, develops technical, formal & legal documentation, creates concepts together with their production technology, selects technological equipment, prefabricates steel structures, delivers installation services, offers project supervision and handles startups. The Company specializes in manufacturing furnace machines used for operating coke oven batteries, technological systems (including machines, devices and pipelines etc. for coal derivatives processing systems) and other steel structures (a battery ignition unit).

The flagship project of ZK-REM Sp. z o.o., delivered in 2016–2017, is the turnkey construction of a coke oven stabilizer and a spark plug for coke oven gas combustion in Kraków. The subject of the project is very innovative and is the world’s first integrated system for coke oven gas pressure stabilization in the mains and is a safe mechanism of very precise pressure control in the mains. The system consists of a container of V=15.000m3 for the coke oven gas of Wiggins’ type, and a spark plug for gas emergency combustion together with a uniform PLC (Programmable Logic Controller). The installed safety solutions make the system failure-free and safe to operate in any climate and weather conditions.

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Biuro Projektów Koksoprojekt Sp. z o.o. provides design and engineering services on the basis of its own modern technologies for the coke-chemical industry both in Poland and abroad.

The newest generation of coke oven batteries and coke oven gas treatment systems meets the BAT regulations, features a set of comprehensive solutions in the field of environmental protection and assures effective energy use with moderate outlays and low operating costs.

The Company’s engineering covers all the industries from such fields as the coke-chemical industry, industrial construction and environmental protection systems. Biuro Projektów Koksoprojekt has its flagship projects for the design of which it was fully responsible, among which: • in the ArcelorMittal Coking Plant in Zdzieszowice: it designed 3÷10 battery systems, restructured batteries 7 and 8, provided new batteries 11 and 12 and modernized the Department of Coal Derivatives, • it designed the entire Przyjaźń Coking Plant in Dąbrowa Górnicza with a new battery no. 5 and a fully modernized coal derivatives system, and expanded the BTX removal system, • in the ArcelorMittal Coking Plant in Kraków: it designed WK1 battery with the coke oven dry cooling system and with the modernization of coal derivatives,

• in the WZK (Wałbrzyskie Zakłady Koksownicze – Wałbrzych Coking Plant) Victoria S.A.: it was responsible for turnkey completion of the initial coke oven gas cooling and BTX facility and the coke oven gas treatment system removing ammonia and hydrogen sulfide.

Moreover, the systems designed by the Company and embracing the whole coke making lines and coke oven gas treatment are used in all other Polish coking plants as well as in various coking plants abroad.

At present, the Company is delivering a construction project for the JSW Koksownia Radlin (JSW Radlin Coking Plant), named “Modernization of the system removing BTX from coke oven gas”. As the leader of the consortium, it also constructs Battery no. 6 in the WZK (Wałbrzyskie Zakłady Koksownicze Wałbrzych – Coking Plant) Victoria in Wałbrzych.

To obtain the highest possible level of its projects, the Company applies the most advanced computer support systems and a Quality Management System consistent with PN EN ISO 9001.

EKO-PAR Sp. z o.o., based in Kraków, representing Polish private capital, was established in 1989 to develop environmental protection facilities and devices. It deals with these issues comprehensively by offering design services, manufacturing and installing individual components, and completing the deliveries of machines and devices.

EKO-PAR delivers:

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construction and modernization projects embracing the entire facilities technological divisions or systems, dedusting, neutralization, ventilation and air conditioning systems in industrial, social, health care, energy and municipal facilities and others, systems collecting dust from dedusting devices such as filters and electrostatic precipitators together with pneumatic transport, electrical, control and low and high voltage cable systems, together with the supply of prefabricated electrical components, bag filters, single cyclone separators, multiple cyclone separators, electrostatic precipitators, gas and steam neutralizers, etc., water treatment stations, construction and steel structures for halls, sheds, flyovers, bypasses, filters and low pressure tanks.

EKO-PAR Sp. z o.o. is an engineering and project execution company, with its own design and execution base, which successfully implements the company’s mission, which is the continuous improvement of its products and introduction of new solutions satisfying the needs of the Company’s customers and delivering customers permanent and significant improvements that allow for rational and safe conduct of their businesses.

POLISH FOOD COMPETES ON TASTE

AND QUALITY

Marek Moczulski, President of the Board, Bakalland Group, tells “Polish Market” about competitive advantages of Polish companies, Bakalland products and foreign expansion.

Bakalland offers not only nuts and dried fruit, but also snacks and breakfast products, which are sold across the world. What guides you in choosing prospective new directions for foreign expansion?

Bakalland exports products to more than 40 countries located on all continents: from the United States and Canada to South Africa, Australia and New Zealand. Importantly, we are present in the largest shopping chains in Europe, Africa and Asia.

We have an export brand of breakfast cereals, which enjoys great interest from buyers. We also export products under our Bakalland brand. Our products win the hearts of consumers across the world because of their high quality and suitability to be sold in both large shopping chains and convenience stores. The greatest hit among our export products are cereal bars with nuts and dried fruit. They have taken the South African market by storm, becoming a number-two product within a short time.

We are expanding on the markets which have not been penetrated too much by global food corporations, but have been influenced by the world’s dietary megatrends, like for example pro-health and convenience ideas. Our model of entering foreign markets often involves close cooperation with distributors. Working with a local partner, we are able to become established on shop shelves in a relatively short time. With foreign consumers in mind, we have prepared versions of packaging and marketing materials dedicated to them. Of course, we do not rule out setting up our permanent offices on strategic markets.

PM

What, in your view, are the biggest competitive advantages of the Polish food industry? Why are Polish products so popular in the world?

Polish food competes on taste and quality.

Polish companies, such as ours, know how to create in this segment products that are liked across the world. Our experience shows us that products liked by Polish people are also very successful on PM

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most foreign markets. You can buy the same BA! bars and crunchy muesli in Warsaw and Hong Kong. But we are able of course to meet special taste preferences on individual markets. I am convinced that the innovation we have launched this year – bars without sugar – will also catch on in countries where consumers bet on an active lifestyle and healthy eating.

What is the biggest barrier to entering foreign markets? You are present in Asia, Africa and the two Americas. What was the most difficult thing in the process of becoming established on other continents?

Apart from political barriers, like for example embargos, we also have to do with administrative barriers. State protectionism, red tape, legal differences in product packaging and labelling, and frequently changing regulations pose a real challenge to foreign businesses on some markets.

Of course when entering new markets we see to it that our product meets all local regulatory requirements. We have, for example, packaging for the Ba! bar designed for the markets of South Africa and neighbouring countries and packaging with Arabic labelling.

PM

What is your view of trade missions? Is support from authorities helpful on Asian and African markets?

Obviously, this support is important. Trade missions create conditions for establishing or expanding business contacts, which often result in contracts and lend credence to the business in the eyes of a foreign partner. Naturally, the product offered has to be of the highest quality and meet local needs. Participation in a trade mission gives you important advantages from the start.

for us. These are young and dynamic societies and Bakalland products excellently match their lifestyle. The global dietary megatrends are strongly represented here, which is translated into the consumption of products which are less processed, based on natural ingredients or with a high content of fibre. With its population of nearly 100 million, Egypt is for us an important area for expansion and a window onto other North African countries. Our products have been present on the Egyptian market for over a year and enjoy great popularity with local consumers. As a result, we are constantly expanding the range of products offered on the market.

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PM

Are Egypt and North Africa strategic markets?

What are your hopes for the presence of your company in this region?

Egypt and North Africa, but also the Middle East, are very important and attractive markets PM

Contacts us: Katarzyna Włodarczyk Export Director katarzyna.wlodarczyk@bakalland.pl export@bakalland.pl Tel.: 00 48 22 353 22 62

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