The new trade facilitation technology—the Advance Cargo Information (ACI) system—was successfully implemented on October 1 across all of Egypt’s ports, and is being applied to all goods imported into the country.
By using digital methods underpinned by block chain technology, the new customs system dispenses with paper documents, enabling goods to be checked and cleared before they reach Egyptian ports. The technology also strengthens risk management systems, identifying goods before they are shipped.
At the time of its launch, 38,700 exporters from around the world were registered to the new system, which has been broadly welcomed by Egypt’s trade partners. “This new trade facilitation technology will make it simpler, easier and cheaper for all companies exporting goods to Egypt,” said Jan Noether, CEO of the German-Arab Chamber of Commerce (AHK Egypt). “It shows that Egypt is not only open for business, but serious about maximizing its location at the crossroads of the world to become one of the world’s great trading economies.”
Independent evaluation shows that Egypt’s customs processing times have already improved by 55%.
Egypt is Africa’s second-largest importer; responsible for total imports in 2019 valued at $76.4 billion, and it is the world’s largest importer of wheat and asphalt. The biggest exporting countries to Egypt are China, the United States, Saudi Arabia, Germany and Turkey.
At the launch of ACI, in Cairo, H.E. Dr. Mohamed Maait, Egypt’s Minister of Finance, described the implementation of ACI as “a crucial step in our plans to transform Egypt’s trade infrastructure. This new technology will make it much easier for companies all over the world to trade with Egypt, helping to deliver the government’s plan to create the most advanced logistics hub in the region.”
“The implementation of the Advance Cargo Information system is a crucial step in our plans to transform Egypt’s trade infrastructure. This new technology will make it much easier for companies all over the world to trade with Egypt, helping to deliver the government’s plan to create the most advanced logistics hub in the region.”
In April 2019, the Egyptian government launched the National Single Window for Foreign Trade Facilitation (Nafeza), a single digital trade portal for all import, export and transit operations that links all of Egypt’s ports. The transformation program has also included the establishment of high-tech logistics centers in Cairo, East and West Port Said, Port Tawfik, Ain Sokhna, Damietta, Dakhilah and Alexandria to ensure that port facilities are transiting goods efficiently.
An evaluation shows that Egypt’s customs processing times have already improved by 55% since the portal was launched—a significant step in realizing the objective of reducing customs clearance time to less than one day.
Nafeza is part of an ambitious economic program to drive the wholesale modernization of the Egyptian economy. This initiative includes a $4 billion overhaul of Egypt’s ports, involving 58 wide-ranging projects that include the construction of new berths, trading yards and wharves as well as the dredging of shipping lanes and port docks. Plans are also in progress to develop a series of dry ports that will connect Egypt’s seaports to inland locations.
The dry port connections are part of a major railway and road expansion program—comprising more than 2,000 projects—set to be completed by 2024. Flagship projects include a highway linking Egypt with nine other African countries to boost Egypt’s exports to the continent, and a high-speed railway between Egyptian ports on the Red Sea and the Mediterranean coast. In line with Egypt Vision 2030, launched in February 2016, Egypt plans to almost double trade in goods and services, from 37% of the economy to 65%.
In 2020, Egypt attracted the second-highest level of foreign direct investment in the Arab world and was the biggest recipient of FDI funds in Africa.
Egypt’s infrastructure upgrades are part of a broader package of economic reforms to improve the country’s business environment and attract investment. Despite the impact of the pandemic, particularly on the country’s vital tourism sector, the Egyptian economy was one of the few emerging markets to experience growth last year. Egypt’s exports in June were up nearly 50% from the same month last year, while its trade deficit fell by over a quarter, according to data from the country’s Central Agency for Public Mobilization and Statistics. In 2020, Egypt attracted the second-highest levels of foreign direct investment in the Arab world, and was the biggest recipient of FDI funds in Africa.
Egypt is Africa’s top manufacturing hub, accounting for 22% of the continent’s value added in this sector, according to OECD, and the country’s reforms seek to boost the country’s manufacturing base. A key component of the economy, manufacturing is set to expand further as the country develops new sectors such as Covid vaccine and electric car production.
The OECD has also recognized, in a report published in July, that a growing number of firms are choosing Egypt as their production base for the African continent and the Middle East, and benefiting from the large number of free-trade agreements signed between Egypt and African, Arab, European and Latin American countries.
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