Al Amwal Newspaper
The 1st Cairo Factoring Promotion Conference,
In the Spotlight
“The Egyptian economy achieved growth rates up to 7% in last few years”
(Rashid Mohammed Rashid)
“Factoring system should be applied to support micro enterprises”
Wrote: Mohammed El Khloy
After a package of legislations and economy reform were adopted by the Government, the Egyptian economy achieved growth rates ranging from 7,7 % to 7,9 % in the last few years. This came during a speech delivered by Ola Gadallah; Head of the Egyptian Company for Exports Credit Guarantee, on behalf of the State Minister of Trade and Industry; Rashid Mohammed Rashid. She stressed that the investments in the fields of real estates and oil industry were a strong support to get out of the financial crises, in line with the recent banking and taxation reforms which led to a raise in the exports volume from US$10,5 billion to US$ 24 billion. This came during the first annual conference held by the International Factoring Organization under sponsorship of the Ministry of Trade and Industry.
During the Conference, the Head of the Organization gave a word stating that factoring was recently introduced to the Egyptian market although it started worldwide since 1969. He added that the Organization covers 66 countries, with a factoring business volume of US$1,109 billion by the end of year 2009. He also indicated that factoring business was introduced to Egypt in 2006 after the start up of the first Egyptian joint stock company specialized in factoring, with business volume of up to US$ 33 million. Nevertheless, Egypt occupies a relatively late position, compared to the rest of Organization members.
On the sideline of the Conference, Mr. Ali Moussa; Head of the Cairo Chamber of Commerce, stated that the Chamber is considered one of the large chambers in the Middle East. It includes 365,000 members and one million traders only in Cairo, out of four million traders in the whole Arab Republic of Egypt. He added that the economic changes occurred in the recent years in Egypt have participated in uprising the Egyptian economy. He further stressed that factoring business supports a large number of traders in the Egyptian market, as 95% of the projects are considered small and medium enterprises. He therefore believes that it is for the benefit of such projects to apply the factoring system to incur less cost and save more time, compared to banks. Moussa then called for expansion of factoring business in Egypt, particularly the local transactions carried out in the Egyptian market, so as to reach LE four billion per annum.