Author: OBG Admin

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Place in the sun: Investment in new projects and production capabilities is building momentum in an effort to become a centre for solar energy

Posted OBG AdminPosted in Uncategorized

  A combination of factors is driving demand for solar power in Egypt. According to the European Bank for Reconstruction and Development (EBRD), the cost of electricity produced by renewable projects has gradually decreased over recent years to become more competitive than traditional hydrocarbons-based sources. The government’s long-running effort to reduce the budgetary support it has historically provided fossil fuels has coincided with this trend: Egypt nearly halved its projected subsidy spending for petroleum products in the 2020/21 budget, lowering it from LE52.9bn ($3.3bn) to

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Fast-moving change: Producers and food retailers adapt to shifting preferences

Posted OBG AdminPosted in Uncategorized

  After the 2016 currency devaluation and IMF-backed economic reforms that led to an increase in the prices of necessities such as fuel, electricity and basic foods, Egyptian consumers began to rationalise their spending habits. Many began to opt for cheaper brands, or stopped purchases in certain categories altogether. Fast-moving consumer goods (FMCGs) and food retailers were particularly affected by the changes, as high inflation drove down demand. However, a fall in the unemployment rate – from 10.9% in FY 2018/19 to 8.6% in FY 2019/20 – has resulted in a slight improvement in consumer spending. According to a February 2020 report from Fitch Solutions,

Daouda Coulibaly-Managing Director-Société Ivoirienne de Banque

Manufacturing shift: The Covid-19 pandemic has sparked questions about whether China can sustain its position at the centre of global industry and international supply chains

Posted OBG AdminPosted in Uncategorized

  The fact that the virus originated in China, the world’s major manufacturing centre, led to disruptions in global supply chains of basic goods, and gave rise to speculation that some companies would seek alternative production bases. Indeed, international reaction was swift, with representatives of three of the world’s four largest economies publicly encouraging companies to shift their manufacturing operations out of China as part of plans to diversify global industry. In April 2020 Phil Hogan, EU trade commissioner, told international media that the bloc

George Richani-CEO-Al Ahli Bank of Kuwait

Spinning forward: Investment in textile production is set to boost exports

Posted OBG AdminPosted in Uncategorized

  In comparison to many other industrial subsectors in Egypt that rely heavily on imported inputs, which grew more costly following the 2016 currency devaluation, the garment segment is able to use locally sourced materials. Foreign investors are attracted to the production base’s relatively affordable labour, lower electricity and water costs, and attractive location with proximity to key markets in Europe, Africa and Asia. Textiles are also central to the government’s efforts to increase the volume of value-added exports. Textiles’ annual export value is estimated to be around $2.6bn, or 15% of non-oil exports. According to the Textile Export Council – a public-private partnership organisation

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Going digital: Government services are shifting online to boost efficiency

Posted OBG AdminPosted in Uncategorized

  As part of Egypt’s digital transformation, the country is working to digitalise government services and train Egyptian youth in technology and other specialisations to ensure the country has a qualified workforce to meet the shifting demands of employers. The Ministry of Communications and Information Technology (MCIT) has sought to create a digital government through the transformation of service administration, the modernisation of IT infrastructure, and the creation of a strong legislative framework that provides governance and data security, while at the same time preserving user rights. The digitalisation of services is expected to enhance bureaucratic efficiency, as well as increase data availability and sharing,

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Source of wealth: Business process outsourcing firms are attracted to the educated workforce and strong IT infrastructure

Posted OBG AdminPosted in Uncategorized

  Drawing on its location between Europe, the Middle East and Africa; its youthful, educated, tech-savvy and multi-lingual population; and strong IT infrastructure, Egypt has become a destination for business process outsourcing (BPO). The budding segment has been supported by the government, which offers financial incentives to outsourcing companies, and has invested in the necessary telecommunications infrastructure upgrades to support BPO, such as 4G and fibre-optic cable networks. Workforce The country’s success establishing itself as an outsourcing destination has created thousands of jobs, with the

Prasanta Das Sarma-Managing Director-Airtel Kenya

Building up: Efforts encourage the private sector to play a more important role in funding infrastructure projects

Posted OBG AdminPosted in Uncategorized

  In recent years infrastructure and real estate development have been important growth drivers for the construction industry, and the government has highlighted the need for private investment to take on a larger role in the sector. Indeed, much of the growth in construction activity has been accelerated by the private sector, as a result of the government’s economic and structural reforms designed to improve the business environment. The private sector is set to play an even more vital role in the sector as the

Daouda Coulibaly-Managing Director-Société Ivoirienne de Banque

Home economics: The government has launched a number of initiatives to offer mortgage financing to low- and middle-income households

Posted OBG AdminPosted in Uncategorized

  Egypt’s economic reforms, such as the flotation of the pound in late 2016, the reduction of fuel subsidies and the wave of inflation that followed, have broadly affected household purchasing power in recent years. In turn, this has caused a fall in demand for real estate and impacted the sector’s overall performance. This has been compounded by the outbreak of Covid-19 in early 2020, which has led to a further slowdown in demand. The most common means of developer financing, using off-plan sales –

Mohammed El Etreby-Chairman-Banque Misr

Money matters: Shifts in monetary policy support lending to the private sector

Posted OBG AdminPosted in Uncategorized

  Higher interest rates following the flotation of the Egyptian pound in 2016 made it costly for businesses and individuals to obtain funding from Egyptian banks. The depreciation of the currency also raised input costs for businesses and reduced their ability to expand operations, thereby reducing demand for funding to cover capital expenditure. Banks, meanwhile, found it easier to lend to the government in a high interest rate environment, further restricting private sector lending growth and solidifying a trend that has persisted in the domestic market. Indeed, banks held LE2.4trn ($147.9bn) in government debt in September 2018, while their aggregate lending to private sector stood

Pham Hong Hai-CEO-HSBC Vietnam

Open invitation: Government policy and private sector activity are fuelling the development of digital banking solutions

Posted OBG AdminPosted in Uncategorized

  Egypt’s sizeable informal economy represents a significant challenge for the government. With between 40% and 60% of economic activity taking place out of sight of the Ministry of Finance, the government’s economic reform agenda faces a number of obstacles. Informal employment is generally characterised by low-wage, low-skill activity with limited potential for the kind of productivity increases that the government has deemed necessary for the nation’s long-term economic growth. Perhaps most importantly for a country with an ambitious development agenda, the existence of such