Egypt provides a case study in how to prepare for the Africa Free Trade Area

Jul 11, 2021/Alastair Tempest/

The African Free Trade Area (AfCFTA) could add at least 32 new trade partners to Egypt and help diversify and upgrade the country’s economy. But to benefit fully from the AfCFTA, Egypt needs to update its policy approach for economic transformation, according to the new Production Transformation Policy Review (PTPR), released by the Egyptian government on 8 June. Although Africa is a small industrial player, accounting for only 2% of world manufacturing, Egypt is the continent’s top manufacturing hub, producing 22% of Africa’s manufacturing value added. This has led to international investors choosing Egypt as their base for manufacturing goods for the African continent and the Middle East. Between 2017 and 2020, Egypt attracted the highest percentage of foreign direct investment (FDI) in electronics and electrical manufacturing in Africa (21% of the total number of projects), and the second highest level of investment in knowledge-intensive projects (14%). The country has become one of Africa’s top hubs for start-ups. It accounts for 14% of the continent’s start-ups and 10.5% of its venture capital.

Egypt also launched a successful COVID recovery package last year which accounted for 1.9% of Egypt’s GDP, and includes tax breaks, loan repayment deferrals and subsidized credit to firms. Since 2017, Egypt has been reforming its governance and regulatory framework to attract investment, foster trade and digitalisation in firms, the report says. Among the country’s key reforms, the implementation this year of a ‘national single window’, an online platform to speed up customs processes, is a good example. Egypt has also been investing in ensuring manufacturing quality and established the National Food Safety Authority in 2017. However, Egypt still trades little with other African economies, with only 15% of its exports traded on the continent and this it plans to increase rapidly under the AfCFTA.

Meanwhile, Egyptian B2B ecommerce platform MaxAB has secured US$40 million in Series A funding to help it expand across the country and the broader MENA region. Founded in 2018, MaxAB connects food and grocery retailers to suppliers in Egypt’s most under-served geographies. The company serves a network of traditional retailers across Egypt, using empowering technologies and innovative supply chains to help put the correct amount of food and groceries at the right place at the right time. So far it has supplied more than 55,000 retailers, fulfilled more than one million orders, and grown more than 5x year-on-year. Having secured US$6.2 million in seed funding in 2019, the new Series A round will be deployed to expand MaxAB’s physical footprint across the MENA region, following its expansion to every key city in Egypt by the end of 2021. The company also plans on scaling recently launched business verticals, including new supply chains and embedded finance solutions. It also plans to expand its talent pool.

Posted in Africa, eCommerce News

Alastair Tempest

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Agriculture, hunting, forestry and fishing:
- All agriculture, hunting, forestry, fishing and related services, including the
  export of agricultural products permitted

Electricity, gas and water supply:
- All electricity, gas and water supply

Manufacturing:
- Manufacture of retail products permitted to be sold under Level Four, and
  all input products, permitted scaling up to full employment, except where
  otherwise indicated;
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  permitted scaling up to full employment;
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  employment;
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  required) permitted, commencing at 25% and scaling up to 50%
  employment;
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- Stationery production, scaling up in phases to 50% employment;
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Construction and related services (inc. tradespeople):
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- Critical maintenance and repairs;

Wholesale and retail trade, covering stores, spaza shops, eCommerce and informal traders:
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Information and communication services:
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Media and entertainment services:
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Financial and business services:
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  possible, and only to support other Level Four services;

Accommodation and food service activities:
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  curfew (no sit down or pick-up allowed);

Transport, storage and communication services:
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- Open-cast mining scaling up to full employment; and
- All other mining starting in batches scaling up towards 50% employment

Repair and related emergency services:
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- Emergency automobile repairs for all persons

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  directions by the relevant cabinet members

Private households employment:
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Health, social and personal services:
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- Recycling of glass, paper & metal inc informal recyclers permitted at 50% capacity;
- All Social work, counselling, care and relief activities permitted
- Wildlife Management, Antipoaching, Animal Care and Veterinary services;
- Funeral and cremation services, including mortuaries services and the transportation of mortal remains;
- Trade union essential staff for workers covered by Level 4, subject to Directions

Education services:
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Personal Movement:
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  approval) or essential services.
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- People can exercise under strict public health conditions, subject to directions, which will exclude organised activities, recreational facilities,
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- Emergencies for medical reasons.
- Those who have an exemption to travel for funerals
- South Africans returning home and foreign nationals leaving South Africa
- Elderly and persons with co-morbidities are encouraged to self-isolate and only leave home for exceptional reasons.
- Social distancing (2m away from other persons) to be applied in public when, shopping, visiting health facilities (pharmacies, clinics etc),
- Social distancing when using public and private transport, as per transport guidelines
- All public gatherings are prohibited.
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  should be implemented instead of the physical queuing of customers.
- Curfews will be implemented between 8pm and 5am

Egypt provides a case study in how to prepare for the Africa Free Trade Area

Alastair Tempest

129 Comments

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Level Four: Permitted Retail and Service Operations; and Personal Movement

25 April 2020

Egypt provides a case study in how to prepare for the Africa Free Trade Area

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Alastair Tempest

129 Comments

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Level Four: Permitted Retail and Service Operations; and Personal Movement

25 April 2020