© EuroMed@Change 2013 3

Building EuroMed partnerships

This guide is designed as a Doing business toolkit for

clusters, SMEs, or entrepreneurs interested in

developing business partnerships in the agri-food

sector in Egypt. It provides an overview of the main

opportunities available in the private sector, as well

as concrete and useful data to those interested to go

further (contacts, calendar of events, etc.).

References

The Mediterranean Business Guide, focus on Agri-

food in Egypt has been prepared by ANIMA

Investment Network under the EuroMed@Change

Project, a Preparatory Action initiated by the

European Parliament and implemented by the

European Commission (DG Enterprise and Industry).

EuroMed@Change proposes new dynamics for SME

and cluster internationalisation between Europe and 4

targeted partner countries: Morocco, Tunisia, Egypt

and Lebanon. It is managed by four organisations

from across Europe (ANIMA Investment network as

Project leader, the European Business Innovation

Centre Network, INNO AG and the Fondation Sophia

Antipolis as partners) and it coordinates more than 45

associated regional business, finance and innovation

networks.

Authors

This Business Guide has been prepared and drafted by Monica Airoldi, with contributions from Manal Tabet (preparation, proofreading) Zoé Luçon (FDI section), Amina Ziane Cherif (maps), Jeanne Lapujade (proofreading), Lauriane Ammouche (Layout) and ANIMA.

The author would like to warmly thank Menna Rabie,

Researcher at GAFI for all information provided.

Disclaimer

This publication has been produced with the support of the European Commission. The contents of this publication are the sole responsibility of ANIMA Investment Network and can under no circumstances be regarded as reflecting the views of the European Union”.

Copyrvight

© EuroMed@Change May 2013. No part of this

publication may be reproduced without express

authorisation. All rights reserved.

Table of contents

List of acronyms

ANIMA-MIPO: Mediterranean Foreign Direct

Investments and Partnerships announcements

Observatory implemented and managed by

ANIMA

EU: European Union

FAO: Food and Agriculture Organization

FDI: Foreign Direct Investment

Ha: Hectare (1 feddan= 0.42 ha)

MED 10 countries: Algeria, Egypt, Israel,

Jordan, Lebanon, Libya, Morocco, Palestine,

Tunisia, Turkey

n.a.: not available

WTO: World Trade Organisation

Table of contents

1. Mediterranean overview..............................p.4

2. Market trends and opportunities..................p.6

3. Foreign direct investments..........................p.10

4. Key players.............................................p.13

5. Recent national policies..........................p.16

6. Selected programmes and initiatives............p.18

7. Major business events.................................p.20

© EuroMed@Change 2013 4

© EuroMed@Change 2013 5

Mediterranean overview

An increased pressure which requires rapid

developments

Agri-food is one of the most strategic sectors in the

Mediterranean. The region is indeed facing a steady

rise in food needs as a direct consequence of the

rapid population growth and recent changes in

consumption patterns. If Turkey has achieved a

relative self-sufficiency, the deficit continues to widen

in the other countries of the region (respectively 55%

and 85% of food consumption was imported in 2011

in Egypt and Lebanon for example), increasing their

dependence on volatile international markets. The

“Arab Spring” - which initially took the form of a

social unrest caused by a dramatic raise in food prices

- has highlighted the urgency of improving food

security as well as the necessity to achieve a more

integrated development of territories.

Stable investments trends

In light of the strong growth potential of

Mediterranean markets, foreign direct investment

(FDI) in agriculture and agro-industry has remained

relatively stable to date. 2011 was however a record

year, with major investments in Turkey (partial

acquisition of local brewer EFES by Britain’s SABMiller,

takeover of local alcoholic beverage producer Mey

Içki by TGP Capital) and large projects in Egypt

(Nestlé) and Morocco (Lesieur).

The sector is characterised by a predominance of

investments from multinational companies, mainly

European. Attracted by the size of the markets but

adamant about their independence, the latter have so

far favoured traditional projects, either through the

establishment of local production facilities (dairy

products or biscuits in Algeria, Egypt, Tunisia and

Turkey for France’s Danone, fruits and vegetables in

Tunisia for Spain’s SanLucar, vegetal oil or sugar in

Algeria, Egypt, Morocco and Turkey for Saudi Arabia’s

Savola, etc.) or through the take-over or the

acquisition of a controlling stake in local businesses

(Turkish confectionery brands Balaban and Dogan,

and leading Israeli firms Osem, Materna and Tivall for

Swiss Nestlé, Tunisia’s producer of vegetal oil and

margarine Gias Ingredient for German Dr. Oetker,

etc.).

However, the sector attracts more SMEs year after

year (+ 30% between 2010 and 2011) interested in

the opportunities presented by business partnerships

(commercial and technological). Last but not least,

the recent entry of investment funds into the market

(TGP Capital, Investcorp, APAX Partners, Riverside,

Global Emerging Markets, Actis, Capital trust)

highlights the strong potential for growth of the

sector.

FDI and partnership announcements in agri-food in the MED 10 countries (nb of projects, ANIMA-MIPO)

19

20

3834

2927

27

40

39

30

3 3 42

7

5 57

6 7

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Nb. of investments Nb of partnerships

FDI project announcements in the agri-food sector by MED country (total 2003-2012, ANIMA-MIPO)

84

65

40

3027

1621

10 63 1

TR MA EG TN AL IL SY JO LB LY PS

© EuroMed@Change 2013 6

Major assets and promising value chains to develop The Southern rim of the Mediterranean benefits from

many assets in the agri-food sector, to start with its

excellent culinary reputation in Lebanon, Morocco and

Syria among others. The MED countries are gradually

increasing the value added of their agri-food sectors

by developing the processing industry and packaging

for export development. The recent creation of agro-

clusters (Morocco, Tunisia), including laboratories and

R&D centres, can support the modernisation of

production equipments and the development of

typical products (prickly pear, camel milk, etc.).

Finally, a number of niches with high growth potential

remain largely untapped. This is the case of

ingredients and processes constituting the

Mediterranean diet (horticulture, vegetable oils,

processed vegetables, dairy products, aromatic and

medicinal plants, etc.), of pre-cooked meals or

organic farming.

SOME USEFUL LINKS

Food Security in the Mediterranean: a major geostrategic issue (2010), IPEMED http://www.ipemed.coop/en/publications-r17/les-notes-

ipemed-c48/food-security-in-the-mediterranean-a-major-

geostrategic-issue-a183.html

Mediterra 2012: the Mediterranean diet for sustainable regional development (2012), CIHEAM - Presses de Sciences-Po http://www.ciheam.org/index.php/en/publications/medite

rra-2012

Mediterra 2010: Atlas of Mediterranean agriculture, food, fisheries and rural areas (2010), CIHEAM - Presses de Sciences-Po http://www.ciheam.org/index.php/en/publications/atlas-

mediterra

CIHEAM’s quarterly Watch Letters, devoted to major issues in Mediterranean food and agriculture http://www.ciheam.org/index.php/en/publications/watch-

letters

CIHEAM’s Briefing Notes http://www.ciheam.org/index.php/en/observatory/study-

and-monitoring/81-notes-dalerte

MORE USEFUL LINKS

CIHEAM’s Analytical Notes

http://www.ciheam.org/index.php/en/observatory/stu

dy-and-monitoring/analytical-notes

OECD-FAO Agricultural Outlook

http://www.oecd.org/site/oecd-faoagriculturaloutlook/

Mediterranean Investment Map: sectoral guidebook

on public investment policies in the Mediterranean

(2010), ANIMA Investment Network

http://www.animaweb.org/uploads/bases/document/I

nv_MedInvestmentMap_ENG_Light_V2.pdf

Med opportunities: 25 niches markets in need of

investment (2009), ANIMA Investment Network

http://www.animaweb.org/uploads/bases/document/I

nv_25NicheOpportunities_ENWithCover_light_02-

2010.pdf

Overview of the agro-food sector in the Euro-

Mediterranean region (2005), ANIMA Investment

Network

http://www.animaweb.org/uploads/bases/document/

Agriculture_en.pdf

© EuroMed@Change 2013 7

Market trends and opportunities

A multi-assets agri-food sector

Despite its large deserts, Egypt has heavily invested

over the past decades in irrigation systems which,

combined with favourable natural conditions, enables

the country today to produce a wide range of fruits

and vegetables throughout the whole year. Egypt’s

large irrigation infrastructure, relying upstream on the

Aswan dam and downstream on several dams and

their connected irrigation canals, has made it possible

both to ensure a year round irrigation and to prevent

flood damage, hence favouring an intensive farming

on considerably large areas of land. Egypt also

benefits from a well developed food processing

industry, a sector which has received sizeable flows of

FDI in recent years and has attracted many

multinational companies (Nestlé, Heinz, Tetrapack,

Unilever, Cadbury, Danone and Coca-Cola...) seeking

to establish cost-effective production and operate

regional manufacturing bases to cater to the domestic

market as well as to serve as regional export hub.

Egypt’s population of 80 million, and its geographical

situation at the crossroad between Europe and the

Gulf countries, indeed constitute excellent prospects

for the Egyptian agri-food business. In order to match

this ever growing demand, Egypt’s objectives in the

coming years are hence to increase its agricultural

output and to improve its exporting capacities. The

Egyptian Ministry of Agriculture expects agribusiness

sector to weight € 16 bn in annual production by

2020, with 500,000 new jobs created, and plans on

reaching an exports value amounting to €2,7bn, thus

nearly doubling the €1.4bn the country recorded in

2012. Opportunities to invest in the Egyptian agri-food

sector, despite the recent political events, are

therefore flourishing.

Agricultural sector development, a priority

The Egyptian agricultural sector is a major component

of its economy, accounting for 14.5% of its GDP in

2011/2012, 20% of its exports and 34% of its national

labour force. The sector is predominantly constituted

by agricultural cooperatives which manage 92% of

Egypt’s cultivated land. Agricultural cooperatives’

missions include the mitigation of the impact of high

land fragmentation, as agricultural farm holdings with

an average dimension of less than 2 ha represent

almost 42% of total farms.

There are three main types of farming in Egypt:

farming in the oasis, Nile Valley farming and reclaimed

desert land farming.

Egypt is well known for its traditional agriculture

practices and activities which include basin irrigation,

organic manure, crop rotation and intensification.

However, with limited usable land surface and water

supply, less than 5% of land is suitable for farming.

Approximately, 80% of the nation’s water supply is

used for farming and a large portion of this water is

provided by the Nile River. Traditional agricultural

regions are in fact the Nile Valley and delta.

EGYPT: KEY AGRICULTURE DATA (Source: GAFI, Egypt State Information Service, FAO)

Cultivated land

Cultivated area 2,86 millions ha

Agriculture’s share of the water supplies

80%

Role in the economy

% of the GDP 14.8%

% of exports 20%

% of the workforce 30%

Production of main products and crops (2011, thousands of tons)

Rice 3,100.0

Sugar 1,846.1

Milk 1,690.7

Cheese 453.5

Wheat 7,830

Corn 6,492.1

Consumption of main products and crops (2011, thousands of

tons)

Rice 3,549.9

Sugar 2,751.6

Milk 1,802.2

Cheese 469.1

Wheat 17,144

Corn 11,705.1

8 © EuroMed@Change 2013

Main agricultural commodities include cotton, rice,

corn, wheat, beans, fruits, vegetables, cattle, water

buffalo, sheeps and goats. Olives are also one of

Egypt’s best produces. Egypt’s exports include rice

(40%), cotton, vegetables and fruits. Top exports of

the sector in 2012 are: orange, cedar, strawberry,

grapes, frozen vegetables, potato, cotton, fresh onion

and onion dried. Despite such a great diversified

production, agricultural production does not satisfy the

consumptions of Egyptian people.

Land reclamation and irrigation improvement

to boost production

Egypt is among the WTO Net-Food Importing

Development Countries. In 2011, almost 55% of its

food consumption was supplied by imports, mostly of

cereals. The country also imports sugar, oil seeds and

red meat. The latest available trade data covering the

period between July 2012 and January 2013 (GIEWS

Review) indicate that Egypt has imported over 6 million

tons of wheat, mostly from the Russian Federation,

Ukraine and the EU. In order to reach food safety at

domestic level and to boost exports, the Egyptian

government has launched huge agricultural expansion

projects in the 80s and the 90s. Among them, The

North Sinai Development Project aims at

reclaiming 220 thousand feddans west of the Suez

Canal, thanks to the transfer of Nile water through the

Al Salam/Sheikh Gaber canal to North Sinai, mixed with

drainage water from Al Serw and Hadous drains.

Added to the 180 thousand feddans already irrigated in

the area, these 400 thousand feddans will constitute

around 17% of the 3.4 million feddans projected

increase in cultivable land until 2017, according to the

American Chamber of Commerce in Egypt.

The New Valley Development Project, one of the

10th largest construction project in the world, aims at

reclaiming an area of around 1 million feddans in the

New Valley governorate in three regions: around the

Toshka depression, in East Oweinat and in the New

Valley governorate oases. The Toshka project, a

system of canals around Sheikh Zayed Canal, fed from

Lake Nasser through the Mubarak Pumping Station

(completed in 2003) to irrigate 234,000 hectares in the

Sahara, is scheduled to be completed before 2020. The

East Oweinat project aims at irrigating a 200,000

feddans desert depression several hundred kilometres

east of the Gebel Oweinat in the southwest corner of

Egypt, using only deep well water. Such projects,

aiming at improving Egypt’s exports capacities of fruits

and vegetables, offer many investment opportunities

thanks to the global improvement of infrastructure and

legislative frameworks which have been implemented.

Agro industry, the top exporter subsector

The largest agri-food subsector is food processing.

In 2012, according to the General Authority of

Investment and Free Zones (GAFI), this sector could

count on 6 130 companies, reaching a total issued

capital of € 6,3bn. These companies include

manufacturing of agriculture crops, pasta and sweets

manufacturing, processed fish and meat and mills,

dairy products oils and fats. The agro-industry has

boomed with an annual growth rate over 34% in

recent years. Deficiencies in neighbouring nations’ food

industries have created strong business opportunities

for both national and foreign companies operating in

Egypt. As for such opportunities and for the unlimited

potential of Egyptian market, foreign companies have

contributed to 37% of total investments in the agro-

industry sector. The main exports in 2012 included

processed cheese, white cheese, oils, sugar, juice and

its concentrates (GAFI). According to the Ministry of

Industry and Foreign Trade, the agri-food industry

exports reached €736bn in 2012, amounting to 13 %

of total exports and making the sector one of the

nation’s top exporters.

The Gulf region is the main market for Egyptian

processed food exports, accounting for more than 50%

of total exports, followed by the EU, North Africa and

the USA. Added value products for exports to Europe

and the Gulf are fruits, vegetables, cereals, juices,

edible oil and dairy products, halal poultry and meat,

branded sweets and snacks, soft drinks, sugar beet,

aromatic plants and fish packaging.

The olive sector is of particular importance for Egypt,

which exports both bulk and packaged olives. With a

labour force of approximately 30,000 workers, Egypt is

ranking at the eighth position for olive production

GITTC: a Centre of Excellence linking academic research

to enterprises’ innovation.

Grants, Innovation & Technology Transfer Centre (GITTC) is the

main technology transfer office in Egypt. Created in 2009 with a

public-private statue, GITTC operates to increase the added

value of research activities of the Alexandria University in several

areas and in particular in agri-food sector. Its mains activities are

advising on business opportunities, support in building

partnerships, technical and legal advices on patents registration.

GITTC aims at becoming more and more close to enterprises and

to extend its actions to incubation projects, investing in

innovative start ups. To overcome the limits of the Egyptian law

which does not allow universities to create spin-off, today GITTC

works in close connection with TTIDA, a private consultancy firm

established in late 2012 and specialised in commercialising

technologies and patents.

“GITTC’s strategy also considers the development of

international partnerships on some key issues which are only

partially addressed by national programs” continues ElSaadany.

A successful project was implemented with PRICOL, a Dutch

engineering company which is present in Egypt since 2006. In

the framework of a USAID’s program, several training sessions

were organised focusing on know-how transfer from PRICOL’s

experts to Egyptian technicians and professionals. A total of 2000

people were trained during 18 months, mainly coming from the

agri-food sector. Mansour Group , an important Egyptian

company specialised in agri-food, also took part in the event.

Several sub-sectors were addressed in the training, such as food

safety (ISO etc.), a key issue for the transition of the Egyptian

agri-food sector.

© EuroMed@Change 2013 9

worldwide and is one of the world’s top producers

of table olives. Supported by the rapid expansion

of olive cultivation, the olive processing sub-sector

in Egypt has undergone considerable

transformation and technological advancement for

the last two decades. This transformation has

included the construction of more than 40 state-of-

the-art olive mills and table olive processing

facilities, many of which are ISO and HACCP

certified. Olives used for producing olive oil are

mostly hand-picked and carefully handled along

the supply chain, and yield a high quality extra

virgin olive oil. The government’s ambition is to

position Egypt as the third largest olive producer in

the world by expanding the harvested area, which

constitutes an excellent sign for investors in the

sector.

The Egyptian Government is strongly willing to

facilitate investment in the agro-industry. Foreign

company strategic investments will gain in focusing

on high-value food processing supports and agro-

industry projects. Relevant sub-sectors include

genetic engineering at plants and animals fields’,

fertilizers, reclamation and cultivation of barren

and desert lands, innovative irrigation systems,

animal, poultry and fish production, and packaging

and freezing equipment.

Research and technologies

Investment in research and technology is essential

to improve the agricultural productivity and

increasing the value of crop production per land

and water units. The introduction of new

technologies has already led to positive effects on

national agriculture but there’s still much to be

done. 80% of the nation’s water supply is used for

farming and a large portion of this water is

provided by the Nile River. In order to protect and

save up such a primary resource, improvement of

irrigation techniques has become a priority.

Several National programs are addressing the

issue, like the on-farm irrigation development

in old land (OFIDO) project, which goal is to

improve irrigation systems in old land in order to

save significant amounts of water to be used in

reclaiming the targeted areas. This programme

includes actions to expand the use of agricultural

mechanisation and will offer investment

opportunities in terms of manufacturing and

imports of equipment and raw material for the

improvement of field irrigation systems. According

to the Egyptian Ministry of Agriculture and Land

Reclamation, investment will also be needed for

the conversion to PVC pipes, the installation of

controlling valves and on-farm irrigation systems

like laser levelling and gated pipes, the use of

agro-ecological GPS based zoning maps to identify

the optimal land use pattern.

Investments in research also focus on cultivation

techniques such as the hydroponic farming. The

GITTC: a Centre of Excellence linking academic

research to enterprises’ innovation

Grants, Innovation & Technology Transfer Centre (GITTC) is

the main technology transfer office in Egypt. Created in 2009

with a public-private statue, GITTC operates to increase the

added value of research activities of the Alexandria University

in several areas including the agri-food sector. Its mains

activities are advising on business opportunities, supporting

in building partnerships and providing technical and legal

advices on patents registration. GITTC aims at becoming

closer and closer to enterprises and to extend its actions to

incubation projects and investing in innovative start ups. To

overcome the limits of the Egyptian law which does not allow

universities to create spin-off, today GITTC works in close

connection with TTIDA, a private consultancy firm

established in late 2012 and specialised in commercialising

technologies and patents.

“GITTC’s strategy also considers the development of

international partnerships on some key issues which are only

partially addressed by national programs” continues

ElSaadany.

A successful project was implemented with PRICOL, a Dutch

engineering company which is present in Egypt since 2006.

In the framework of a USAID’s program, several training

sessions were organised focusing on know-how transfer from

PRICOL’s experts to Egyptian technicians and professionals. A

total of 2000 people were trained during 18 months, mainly

coming from the agri-food sector. Mansour Group, an

important Egyptian company specialised in agri-food, also

took part in the event. Several sub-sectors were addressed in

the training, such as food safety (ISO etc.), a key issue for

the transition of the Egyptian agri-food sector.

10 © EuroMed@Change 2013

company Egyptian Hydrofarms is one of the country’s

pioneers in this regard. This company uses locally

developed hydroponic growing technology to grow

lettuce and herbs directly in PH-balanced water

without using any chemical pesticide. Such technique

allows saving up to 80-90% of water that is

traditionally wasted. Located in the Azzazy Farm on

the Cairo-Alexandria Desert Road, Egyptian

Hydrofarms owns a plot of 0.4 ha producing half a

ton of leafy green products per day. Egyptian

Hydrofarms is determined to expand facilities and

market in the following years.

Organic agriculture, a profitable niche

Finally, Egypt owns one of the largest organic

farming sector of Africa. Organic cultures in Egypt

which benefit from the availability of organic

production inputs such as compost and bio pest

control products, have recently gained more and

more importance in the Egyptian agriculture as an

alternative to the traditional farming system and for

its positive environmental and social impacts. Sekem,

one of the main actors in the Egyptian organic

production, started in the 1970s as a non-

governmental organisation which applied organic

techniques to a parcel of land, is now holding 7

different brands serving national and international

markets and producing food, herbal medicines,

textiles, herbs and spices or cattle and compost.

SEKEM Holding has worked with international

institutions and counts the German GLS

Gemeinschaftsbank and the Dutch Triodos Bank

among its shareholders since May 2007.

In 2007, 460 organic farms covering an area of 14

165 ha could be found in Egypt. The main Egyptian

organic products are fresh vegetables, tropical fruits,

dried fruits, cotton, herbs and spices, medicinal

plants, and cereals. These organic products mainly

address international markets, and more specifically

the EU (France, Germany, Italy and the UK).

Organic farming, which shows a huge potential in

Egypt, needs a specific supportive legislation as well

as the creation of suitable infrastructures to ensure

its widespread development. Smallholders would gain

in being integrated into the infrastructure network so

as to ensure that technical issues and non-exported

production can also address supermarkets and the

tourist industry.

SEKEM: an international success story for organic

products made in Egypt

In 1977, Sekem was established on an area of 125 acres of

desert land, 60km north-east of Cairo. In 1981, Sekem began

exporting its medicinal herbs to the USA, and in 1983 it

launched its first product line of herbs and organic foodstuff.

In 1988, Libra Company was established, specializing in

packing and exporting fresh fruit and vegetables to Europe.

Since 2004, Sekem Holding has been overseeing 70,000 ha of

organic farms across Egypt and the Sudan, and it owns seven

different companies, including Isis for Organic Foods.

Sekem’s organic products are produced through biodynamic

farming and meet ISO 9001-2000 and HACCP quality

standards. Sekem Holding cooperates with the International

Finance Corporation (IFC) and its trading practices respect

the standards of the Fair Trade Federation.

In 2010 SEKEM in partnership with Danish companies EWH

Bio Production and Envision started mass production of

micro-organisms under the name “Predators Production

Company”. The Predators Production Company is specialised

in breeding and production of a number of natural enemies

that resist many pests in vegetable and fruit crops either in

open field or inside the greenhouse.

© EuroMed@Change 2013 11

Foreign Direct Investments

Strong fundamentals attracting foreign investors Agri-food is the sixth most attractive sector for

foreign investors in Egypt according to the

ANIMA-MIPO Observatory: at least 4 FDI

announcements have been detected every year over

the 2007-2011 period, with a record 10 projects in

2009 (the strong decline in 2012, with only 1 foreign

investment project in agri-food, is part of a global FDI

fall affecting almost all sectors and can be explained

by the current political and economic uncertainty).

The country is thus the third best MED performer in

terms of agri-food FDI projects, behind Turkey and

Morocco. Egypt, the most populous country in the

Middle East, direly needs to reduce its reliance on

importing essential food commodities, and thus offers

a wide portfolio of investment opportunities, mainly in

the food processing industry, but also in agricultural

development and catering.

A wide range of projects in the food processing

industry

31 out of the 39 FDI announcements detected in the

agri-food sector, i.e. 80%, fall under the food

processing industry. The milk industry attracted 8

projects, both from Europe (French holdings Danone,

Lactalis and Bel) and from the Gulf countries (Kuwait

Food Company through its affiliate Americana, and

Saudi Savola and Almarai). These projects, mainly

acquisitions and expansion of existing facilities, target

the domestic market as well as exports to

neighbouring markets. Other sub-sectors of interest

include beverage (6 projects, like the acquisition in

2009 of the dairy and juices producer Beyti by

International Dairy and Juice, a 52-48 joint-venture of

American giant Pepsi and Saudi Almarai, or the

construction of beverage can manufacturing plants by

US groups Ball and Alcoa in 2004), but also bakery

(US transnational corporation Kraft Foods, Greek

Marfin), sweets (British confectionery company

Cadburry), condiments, etc.

A growing interest in agricultural development

and catering

3 Gulf companies have entered Egypt since 2009 to

launch cereal projects: 2 Saudi groups, Al Rajhi and

Kadco (a subsidiary of KHC-Kingdom Holding), in the

frame of the national Toshka project, and Abu Dhabi’s

Jenaan, which acquired a 42,000 ha area in South-

Western Egypt to cultivate wheat for the local market.

2 FDI projects have also been detected in the field of

vegetables, the latest one being the participation of

Dubai Abraaj's SME investment fund in Agrocorp, an

Egyptian SME specialised in artichoke production, in

2009. Egypt also offers wide opportunities in the

catering sector: tens of partnerships projects have

been implemented by North American or Gulf

companies, and in 2008, the London-based private

equity firm Actis injected over EUR 30 m into Mo'men,

one of the largest restaurants chains in Egypt

Egypt: FDI and partnership projects announcements

in the agri-food sector (ANIMA-MIPO)

0

2

4

6

8

10

12

0

200

400

600

800

1000

1200

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Invested amounts (€m) Number of FDI projects

Number of partnerships

Egypt: Main investors in the agri-food sector (in

number of FDI projects, ANIMA-MIPO)

8

65

4 4

6

2 13

0

1

2

3

4

5

6

7

8

9

Saudi

Arabia

USA UK UAE France Other EU Other

Gulf

MED Other

countries

12 © EuroMed@Change 2013

10 biggest FDI announcements in the agri-food sector in Egypt (2003-2013- ANIMA-MIPO)

Investor Origin Date Type Project €m

Kobe Bussan Japan 2006 Greenfield Kobe Bussan to invest EGP 1.2 bn on an 100% export dedicated project in Qena governorate.

967,7

4

Jenaan

United Arab Emirates 2009 Greenfield

The private agricultural investment firm to acquire a 42,000 ha area in South-Western Egypt to cultivate wheat for local market.

186

Ajwa Saudi Arabia 2009

Financial JV, partial acquisition

The agrofood group to strongly increase the issued capital of its 98%-owned local subsidiary AJWA for Food Industries.

159,8

Al Rajhi Saudi Arabia 2009 Brownfield

Saudi Group to exploit 42000 hectares of wheat and maize in the Toshka desert reclamation project.

138,8

Kraft Foods USA 2003

Financial JV, partial acquisition

US food group to acquire Family Nutrition Company, an Egyptian producer of biscuits and snack cakes.

100,6

Cadbury / Cadbury Egypt UK 2008 Brownfield

The group's local branch to invest to develop its production lines of chocolates, candy and cookies in its 3 factories.

88

Savola Saudi Arabia 2011

Acquisition, total privatisation

The group to acquire 100% of two Egyptian pasta manufacturers, El-Maleka and El-Farasha, the largest acquisition in the food industry in Egypt.

86,3

Al Marai Saudi Arabia 2008

Financial JV, partial acquisition

The Saudi Arabian agrofood company to buy a majority stake in Egypt's dairy products group Beyti for EGP 600 million.

73,6

KHC - Kingdom Holding / Kadco

Saudi Arabia 2011 Brownfield

The Egyptian affiliate to pursue its investments in the national Toshka project, aimed at increasing the agricultural area in the south of the country.

64,1

Nestlé Switzerland 2012 Brownfield

The food giant to launch a two year investment and recruitment plan to expand activities in its three existing plants in Egypt

60,5

Egypt: FDI and partnership announcements in the agri-food sector (2003-2013, Source ANIMA-MIPO)

© EuroMed@Change 2013 13

Selected partnership announcements in the agri-food sector in Egypt

Investor Origin Date Type Project

Egypt International Tobacco & Cigarettes Jordan 2003

Development agreement Agreement with Eastern Company to produce cigarettes

Smoothie King USA 2009 Franchise, shop, etc.

The American smoothies chain to sign a franchise agreement with local Amer Group to open 10 shops throughout the country

Smoothie King USA 2009 Franchise, shop, etc.

The first Smoothie Kings are to open in El Alamein, in coastal cities and in Cairo thanks to franchise agreement with local Amer Group

Coca-Cola USA 2012 Development agreement

The company to partner with KidZania to propose an educational programme to kids willing to experiment working in a factory of the group

Freshi Saudi Arabia 2012

Franchise, shop, etc.

The ice stick maker to sign a master franchise agreement with Egyptian Amer Group, which will open the first stores by end 2012

© EuroMed@Change 2013 15

Key players

Regulation

The Ministry of Agriculture and Land Reclamation is in

charge of the agricultural and land reclamation

policies in Egypt. Its activities are therefore devoted

to the development of agricultural resources, the

increase of the reclaimed land area and to the

promotion of rural economics. Several authorities and

agencies depend from the Ministry:

Central Administration for Agricultural Credit;

General Authority for Agrarian Reform;

Division for Reclaimed Land;

General Authority for Export & Import Control

(GOEIC);

The Ministry of Water Resources and Irrigation is in

charge of managing the water resources of the whole

country and agriculture irrigation projects, such as

the Aswan Dam and Al-Salam Canal.

Federation and professional associations

15 General Cooperatives operate in agricultural sector

in Egypt, providing several services to farmers. The

Central Agricultural Cooperative Union is the general

umbrella organisation. Food sector industrial

stakeholders are represented by Chamber of Food

Industries, a non-profit organization with a member

base of more than 3000 companies. CFI represents

processed food & beverage industry before the GOE.

The Federation of Egyptian Industries (FEI) has its

own Food industries Chamber whose main objective

is the development of Egyptian food & beverage

companies and at the same time strengthening the

image of the Egyptian food industry domestically and

globally.

Innovation players

Several structures are devoted to research and

development. The National Research Centre (NRC) is

the principal Egyptian Research player in the public

sector. It has been working since 2002 in conjunction

with the Federation of the Egyptian Industry.

Egyptian Universities collaborate on technology

transfer within the national ENIT network (Egyptian

Network for Innovative Technology) financed in part

by the American support program Usaid and the

Tempus program.

The Agricultural Research Centre (ARC) is the first

research centre created in Egypt. It was founded by

the Ministry of Agriculture in 1970. Today the ARC‘s

applied and basic researches aim at generating a

continuous flow of technologies that help increasing

productivity and reducing production cost.

The Alexandria University Grants, Innovation &

Technology Transfer Centre "GITTC" support staff

members, researchers, undergraduate students and

industry to obtain grants and funding to sponsor their

research and mobility. Moreover it develops a

sustainable system of technology transfer, innovation

and entrepreneurship through the Technology

Transfer & industry collaborative (TTICO).

Organic Certification

With reference to organic agriculture, Egypt has two

national certification bodies: the Centre of Organic

Agriculture in Egypt (COAE) and the Egyptian Centre

for Organic Agriculture (ECOA). COAE was formed as

a non-profit organization in 1990 and, in collaboration

with Demeter Bund and IMO Switzerland, became a

certification body in 1996. ECOA was established

directly as a certification body in 1998.

16 © EuroMed@Change 2013

Government & Governmental bodies

Ministry of Agriculture and Land Reclamation

The Ministry is in charge of the development of agricultural resources, increasing the area of reclaimed land and promoting rural economics .

www.agr-egypt.gov.eg/En_MinistrialLinks.aspx

Ministry of Water Resources and Irrigation The ministry is in charge of managing Egypt’s water resources (mainly coming from the Nile river). It also manages irrigation projects such as the Aswan Dam and Al-Salam Canal.

www.mwri.gov.eg

Industrial Development Agency (IDA) IDA aims at facilitating industrial expansion, enabling the private sector to develop industrial zones & ensure an effective, organized and friendly business environment.

www.ida.gov.eg

General Authority for Investment and Free Zones (GAFI)

GAFI is the governmental authority in charge of regulating and facilitating investment. GAFI makes emphasis on various investment opportunities that lie ahead in different sectors, among which the agri-food sector.

www.gafi.gov.eg/ar/Default.aspx

Principal Bank for Development and Agriculture Credit (PBDAC)

PBDAC is the agricultural bank providing different banking and financing services to farmers and agricultural MSMEs. PBDAC’s mission is to contribute to a comprehensive agricultural development in Egypt.

www.pbdac.com.eg

Egyptian International Centre for Agriculture (EICA)

EICA is in charge of agricultural training programs in the framework of international programs implemented with FAO, IFAD, AARDO, ICARDA, ACSAD and others.

www.eica-eg.org

Main Business Federations & Associations

Chamber of Food Industries CFI is a non-profit organization and the official representative of the Egyptian Food Industry, with a member base of more than 3000 companies. CFI represents processed food & beverage industry before the GOE.

www.egycfi.org.eg

Food industries Chamber, Federation of Egyptian Industries

FEI’s Food Industries Chamber represents Egyptian food & beverage companies and aim at strengthening the image of the Egyptian food industry domestically and globally. It includes more than 2 420 industries.

www.fei.org.eg/chambers_info.asp?id=2

Central Agricultural Cooperative Union The Central Agricultural Cooperative Union is the highest authority in the agricultural cooperative structure in Egypt. It represents the whole Egyptian agricultural cooperative system.

n.a.

Food Export Council (FCE) FEC acts as a think tank, a catalyst and a facilitator for all actions and policy advocacy needed to continuously and dynamically enhance export objectives of the Egyptian food industry.

www.feceg.com/aboutus.php

Union of Producers and Exporters of Horticultural Crops (UPEHC)

Established in 1971, UPEHC has two main strategic objectives: the enhancement of the Egyptian horticultural industry and the development of Egyptian horticultural exports.

www.upehc.org

Egyptian Agribusiness Association (EAGA) EAGA is a non-profit NGO that aims to serve the Agribusiness community through advocacy activities and provides support for industry integrated clusters.

www.eaga-eg.org/whoweare.asp

Union of Growers & Exporters of Organic and Biodynamic Agriculture (UGEOBA)

In 1995 a new group of organic growers established UGEOBA. The Union members produce and trade mainly organic herbs, vegetables, fruits, potato and some cereals.

n.a.

© EuroMed@Change 2013 17

Innovation players (incubators, research centres, etc.)

Agricultural Research Centre (ARC)

Created in 1970 by the Ministry of Agriculture, the ARC had the mission to develop research capabilities in the Egyptian agricultural sector. Further to this, today the ARC is also involved in upgrading technology researches.

www.arc.sci.eg

Food Technology Research Institute (FTRI)

Established in 1991 within the ARC, the FTRI conducts applied researches in food processing to improve the quality of food products to reach international standards and produce safe high nutritional value food.

www.arc.sci.eg/InstsLabs/Default.aspx?OrgID=16

Egyptian Food Safety Information Center (EFSIC)

EFSIC offers information, education, advisory and training which represent a very important area in food safety system. It depends from the FTRI and the ARC.

www.efsic.com

Food Technology Center (FTC) FTC works as a catalyst to help meet the technological needs of the Egyptian food processing industry and its export sector to become competitive in a sustainable manner

www.ftc.gov.eg

Technology Transfer & industry collaborative (TTICO)

Alexandria University office for Technology Transfer & industry collaborative (TTICO) is to transfer inventions and innovative knowledge to outside organizations for the benefit of society.

www.gittc-alexu.org

Ministry of Agriculture and Land Reclamation

Several laboratories and research centres depend from the Ministry of Agriculture and Land Reclamation. The Ministry’s website gives an integral list of such structures.

www.agr-egypt.gov.eg/En_MinistrialLinks.

aspx

Certifications

The Center of Organic Agriculture in Egypt (COAE)

The COAE offers inspection and certification services based on the international regulations and standards with the objective of becoming the leading certification and technical services provider in the Egyptian organic food.

www.coae-eg.com

Egyptian Centre for Organic Agriculture (ECOA)

The Egyptian Center of Organic Agriculture is a certification body in the field of organic agriculture and GLOBAL G.A.P. compliance, inside as well as outside Egypt.

www.ecoa.com.eg

Useful directories ( private companies)

Egyptian Olive Industry Processing companies utilize state-of-the-art technologies and processing techniques and continue to meet the quality and certification standards of competitive export markets.

www.egyptolives.com/?cat=89

ECOA Certified Farms ECOA’s data base includes 282 certified organic farms and 64 certified operators. www.ecoaserver.com/farmList0

2.aspx

Egyptian International Trade Point

EITP provides and on line data base of Egyptian companies operating in the agri-food sector. www.tpegypt.gov.eg/Eng/EgyDirectory.aspx

Egyptian Banking Institute (Central Bank of Egypt)

The Egyptian Banking Institute has launched in 2012 a SMEs database. The companies included cover formal

economic activities, have a minimum of five employees and annual sales up to EGP 50M. www.sme-egypt.org/Pages/smedb.aspx

© EuroMed@Change 2013 19

Recent national policies

Horizon 2017 development strategy

One of the Egyptian agri-food sector’s many

challenges is the necessity to reach food security

levels. With a population of 80 million and imports

representing up to 55% of its domestic food

consumption, the task is immense. The objective of

the government is therefore to boost agricultural

production in order to achieve food security while

supporting national top export production. The

Ministry of Agriculture and Land Reclamation is

aiming at a 4.1% annual growth rate of the

agricultural production. In the framework of the 2003

National Strategy for socio-economic development,

the long term agricultural development strategy has

set key priorities for both agricultural and irrigation

sector up to 2017. The mainstays of the strategy

include:

The reclaim of 1.5 million feddans, including the

areas of Toshka, east of Oynat and El-Salam

canal, with an annual average of 150 thousand

reclaimed feddans;

The vertical development by increasing

agricultural production through expanded

cultivation of highly productive crops that are

characterized by an efficient use of pest resisting

inputs, and with a limited growth period;

The development of animal production;

The support for agricultural products’ exports;

The support for agricultural research programs,

especially in the fields of genetic engineering and

bio-technology, in addition to training and

marketing programs;

Stimulating domestic and foreign investments in

all agricultural areas.

The most important agricultural-based policies on the

development strategy include the following:

Continuing programs for improving and

introducing new species of highly productive

agricultural products, using modern technological

systems (genetic engineering and tissue

transplantation);

Expanding the cultivation of high value crops to

improve farmers’ income;

Allocating parts of reclaimed land to young

graduates and beneficiaries from areas planned to

be reclaimed and cultivated by holding and

corporate companies;

Increasing private sector contribution in

investments targeting land reclamation and

cultivation.

As to the Water Resources Development Strategy to

the 2017 horizon, the strategy is based on the

following two pillars:

Development of new water resources;

Rationalizing the use of irrigation water.

New Land Reclamation Programs

(source: Ministry of Agriculture and Land Reclamation)

Expected area of

reclaimed land until

2020

1.8 m feddans

Expected area of

reclaimed land until

2030

3 m feddans

(1 feddan= 0.42 ha)

20 © EuroMed@Change 2013

Key issues for agri food sector

The government has made the development of the

agricultural sector a priority, ensuring continued levels

of investment. In 2007, new policies were launched

aiming at liberalising the sector and limiting the role of

the state in the agricultural sector and encouraging

private investment. Some national production lines

were privatized and important instruments were

handed to private operators to play a significant role

in the agricultural sector. The government provided

the infrastructure and services required, such as

irrigation, roads and other utilities, together with

credit-lines and tax exemptions. It also developed

credit policies through the Principal Bank for

Development and Agricultural Credit (PBDAC) to play

an active and constructive role in the agricultural

sector.

Egypt also began to implement a series of mega

agricultural projects to achieve a balanced agricultural

development between Egypt’s governorates.

The Ministry of Agriculture, together with the Ministry

of Trade and Industry, has also made the expansion

of agricultural exports a top priority. The Food Export

Council ambition is to reach an annual value of €1.1bn

export by 2020.

The government is also committed to improving

quality standards in the agribusiness industry. In

addition to the industry’s commitment to applying

HACCP standards, the Ministries of Finance and

Investment has announced the creation of a € 113m

fund in 2005 to help improve agri-food processing

operations in Egypt and increase processed food

exports.

Incentives to invest

In Egypt, investment is governed by the Law No. 8 of

1997. This law allows the possession of 100% of the

capital of a company by foreign investors as well as

the repatriation of profits. The General Authority for

Investment (GAFI) acts as the official regulator and

facilitator for all incorporations and licenses. Whatever

the sector, a 100% holding of the capital by foreigners

in a company is permitted, as well as the repatriation

of profits. Investment Law No 8 also provides with the

automatic approval of the investment projects in

priority sectors, among which the agriculture and

livestock, and water management.

Trade agreements

Egypt is a member of several regional free trade

agreements, including GAFTA and COMESA. Through

COMESA membership, Egypt can benefit from the

customs exemptions granted to COMESA member

nations.

Egypt and the European Union signed a Free Trade

Agreement in 2001 in order to gradually establish a

free trade. Egypt’s trade agreement with the European

Union offers duty-free access to the EU market For

Egyptian processed food items.

In May 2009, the United States and Egypt signed a

Plan for a Strategic Partnership, with the goal of

fostering increased bilateral economic cooperation,

especially with regards to trade. This partnership will

certainly favour Egypt’s objective to reach the annual

level of $ 1.5 billion of exports.

Egypt has also ratified the Agadir Agreement

Establishing a Free Trade Area Amongst Arab Euro-

Mediterranean Countries (Jordan, Egypt, Tunisia and

Morocco).

© EuroMed@Change 2013 21

Selected on-going programmes & initiatives

Irri

gati

on

National project for On-farm irrigation development (OFIDO)

Period: Ongoing

Budget: € 7,7 bn

Funding: Governmental, Private Sectors, World Bank, AFDB

Target/Opportunities: Market opportunities

Lead executing agency: Ministry of Agriculture and Land Reclamation

Objectives: OFIDO aims at improving on-farm irrigation systems in old land in

order to save significant amounts of water to be used in reclaiming the targeted

areas in 2030 strategic plan.

Information: http://www.agr-egypt.gov.eg/En_NewsAll.aspx?catid=4

Inte

rnat

ion

al p

rogr

ams LACTIMED – Promoting Mediterranean Dairy Products

Period: 2012-2015

Budget: €4.8m

Funding: European Union / other

Target/Opportunities: Technical assistance, training, networking, BtoB

Lead executing agency: ANIMA and 11 partners

Objectives: Foster the production and distribution of typical and innovative dairy

products in the Mediterranean by organising local value chains, supporting

producers in their development projects and creating new markets for their

products.

Information: www.lactimed.eu

EGYPT ZAYTUN PROJECT

Period: 2011-2013

Budget: n.a.

Funding: USAID

Target/Opportunities: Information and training

Lead executing agency: CNFA, USAID

Objectives: Zaytun Project aims at strengthening Egypt’s competiveness

across the olive oil and table olive value chains

Information: http://www.cnfa.org/program/egypt-zaytun-project/

© EuroMed@Change 2013 23

Major business events

Agr

icu

ltu

re

SAHARA EXPO

Sector: Agri-food and food technologies

Number of editions: 26

Organiser: EXPO

Type: Exhibition for Africa and the Middle East, seminars

Services:

Expected 2013 participation: n.a.

Next event: 23-26.09.2013

Information: www.saharaexpo.com

AGRENA

Sector: Poultry, livestock and fish

Number of editions: 15

Organiser: Crose Fairs Organizers

Type: Middle East exhibition and seminars

Services:

Expected 2013 participation*: n.a.

Next event: 6-8.06.2013

Information: www.agrena.net

Foo

d T

ech

& p

acka

gin

g

FOOD TECH

Sector: Food technology and packaging

Number of editions: n.a.

Organiser: Arabian Group for Development

Type: International exhibition

Services:

2010 participation*: 8 185 professional visitors

Next event: n.a.

Information: www.foodtech-egypt.com

APEX PRINT & PACK 2013

Sector: Food technology and packaging

Number of editions:

Organiser: Middle East Trade Fairs

Type: Arab African exhibition

Services:

Expected 2013 participation*: 8 768 visitors

Next event: 27-30.10.2013

Information: www.apexcairo.net

*organisers’ data

© EuroMed@Change 2013 24

This guide is a Doing business toolkit dedicated to clusters, SMEs, or entrepreneurs

interested in developing business partnerships in the Agri-food sector in Egypt. It provides

an overview of the main opportunities available for the private sector, as well as concrete

and useful data to those interested to go further.

It has been prepared by ANIMA Investment Network under the EuroMed@Change Project,

a Preparatory Action initiated by the European Parliament and implemented by the

European Commission (DG Enterprise and Industry).

EuroMed@Change proposes new dynamics for SME and cluster internationalisation

between Europe and 4 targeted partner countries: Morocco, Tunisia, Egypt and Lebanon. It

is managed by four organisations from across Europe (ANIMA Investment network as

Project leader, the European Business Innovation Centre Network, INNO AG and the

Fondation Sophia Antipolis as partners) and it coordinates with more than 45 associated

regional business, finance and innovation networks.