The Road to COP27 HSBC Opportunity Egypt:

The EBCC in partnership with HSBC Egypt, have organised a breakfast briefing on Thursday 7th of July 2022. The event aimed to discuss the current and future opportunities, strategies and goals for the Egyptian Economy and how they might be of interest to your business. Furthermore, with COP27 being held in Sharm El Sheikh in November 2022, the speakers provided updates on Egypt’s climate strategy, sustainable investing, and net-zero alignment of the financial sector.

Stuart Tait, Head of Commercial Banking HSBC UK, introduced corporate banking by stating ‘With so many locations, vibrant companies HSBC sit at the Crossrail of world commerce, and share insights when we speak with you, we operate 80% of FTSE 100 companies in the UK and 80% in FTSE250 in Tech, leading bank in innovation and trade’. With Egypt hosting the COP and its commitment to net zero economy, HSBC provides funding and advise to enable businesses to where they want to be, the entrepreneurial spirit that brings the whole process all together to discussion on how UK and Egypt can do more business together.

The keynote speech was given by H.E. Sherif Kamel Egyptian Ambassador to the UK. H.E. started his speech by stating how HSBC is a leading bank and has a long presence in Egypt and the formula between the financing and companies coming into Egypt using this for the transformational change that Egypt has been seeing in the last 7 years. HSBC has played a great role in this change as well as the reform program which the government has applied and funded by the IMF strong program creating lots of subsidies to water, electricity and Petrol helping Egypt to reach major transformation in terms of implementing mega infrastructure, 12 new cities, new administrative capital, working on energy generation, changing situation from a deficit in 2015 into a surplus in 2019 and to export electricity not only to neighbouring countries but also to European countries like Greece. Also increasing agriculture target into export and in achieving that, Egypt is always looking for new partners within the private sector in Egypt and there is always a lot of interest in working with the UK government and private sector. Two trade missions between UK and Egypt took place this year as well as the launch of the association council between the two countries based on the signed trade agreement and to introduce the opportunities Egypt offers to the private sector. Egypt has a very young population, very eager and capable of upgrading its skills, it is a gateway to Africa as well as its connection to the Arab world and the EU through different trade agreements, it has the Suez Canal being one of the most important trade canals in the world allowing for manufacturing and logistical services around the canal. The business environment in the country also encourages a very promising business start-up culture among its youth. Egypt is also hosting the COP27 in Sharm El Sheikh to raise awareness in terms of climate issues, as a potential for renewable energy as Egypt aims to become one of the energy hubs in the world, so many opportunities in Egypt.

This was followed by a presentation from Simon Williams, Chief Economist, CEEMEA Region, HSBC Research and his views on the Egyptian economy in the context of the difficult global backdrop and inflation and how global growth is slowing. Egypt enjoys many compelling factors in the long run including a growing population by 2% yearly adding to the workforce as well as Suez Canal which brings so much potential for logistical services, broader primary sector is oil and gas waiting to be developed, potential for green energy around Suez Canal with wind and solar sources. The tourism industry in Egypt, is quite developed however it needs to be even more, with the development of infrastructure new roads, new airports and the new museum all of this speaks in recognition and the importance of manufacturing and export which are all keys for bilateral trade and economic growth for up to 6%, one of the largest growths in any emerging market.

Egypt also faces some challenges including COVID, Russia-Ukraine war, inflation and there will be strains on public finances, however Egypt doesn’t face those problems alone. These are short term pressures which should be eased soon through the international funding agencies supporting Egypt like the IMF, World Bank, EBRD or Africa Development Bank who are engaged with Egypt, recognising its importance and how critical it is to transition smoothly.

Richard Simon -Lewis, Director & Head of Business Development, UK Export Finance

started his presentation with giving an overview of export credit agencies with an emphasis on the close relationship between the UKEF and the Egyptian government leading up to the COP27. The Export Credit Agencies (ECA) are demand led and usually gravitate around mature sectors like aviation and oil and gas. However, UKEF is reimagining the role of an ECA, the work UKEF does alongside HSBC by expanding the sectors breadth with an emphasis around clean growth.

In terms of what UKEF provides, it is embedded with the UK government roadmap, UKEF is keen to bring in new projects of net zero map and the main key objectives now are to provide export finance guidance and insurance to UK companies to recover from COVID-19 and responding to ministerial priorities, continuously adapt and focus on sectors and companies that would benefit the exporters across all sizes and across all the UK and improve awareness of UK companies, banks and insurers about export finance available from UKEF.

Richard has also demonstrated UKEF’s commitment to clean growth by showcasing Ankara-Izmir’s sustainable railway and Taiwan’s offshore wind. He also demonstrated UKEF’s financing of the Monorail in Egypt, the first mass transit to connect Greater Cairo with the Metropolitan areas while saving on fuel and reducing on pollution.

This was followed by Q&A to the panel which included Todd Wilcox CEO HSBC Egypt, Martin Horgan CEO Centamin and moderated by Ali Taqi Head of Commercial Banking HSBC Egypt.