Moroccan-Egyptian businessmen to initiate joint projects

Moroccan and egyptian businessmen agreed on the need to increase the volume of trade exchanges between the two states and to initiate joint investment projects to upgrade economic and trade cooperation.

The businessmen who took part in the third session of the

Moroccan-Egyptian business council held last week in Cairo recommended in a final statement the setting of a joint data base on export and import opportunities provided by the two countries and entrusted a working group with following up the project. The base will be accessed via internet.

The businessmen are currently examining 10 projects worth $ 150 million (500 million Egyptian pounds). These projects include the construction of a Moroccan cement factory plant in Egypt worth $60 million, head of the Egyptian side to the council, Yamani Foulfoula told reporters.

Three joint investment projects were agreed upon during the past three months, mainly a Moroccan food processing unit in Egypt, an Egyptian brewing plant in Morocco and a company that will distribute Egyptian products in the Moroccan market.

The businessmen equally agreed to conduct a feasibility study on the creation of a joint venture to service a maritime line between Casablanca and Alexandria.

The council voiced satisfaction over Morocco's decision to grant Egyptian businessmen multiple entry visas for one year and stressed the necessity to ease capital transfer procedures to back investment projects.

It recommended the setting up of a standing committee that will follow up the implementation of the council recommendations.

The businessmen recommended to admit within the council representatives of the Moroccan and Egyptian banking groupings and to set up a joint banking committee that will ponder on the problems hampering the flow of capital between the two countries.

The possibility to set up a joint Moroccan-Tunisian-Egyptian bank has also been discussed. The bank will serve as the core to a larger bank of all the countries of North Africa that will finance projects and trade transactions in the region.

The council noted that trade exchanges have been steadily increasing over the past three years to stand at $ 40 million. The figure is however far below the $ 200 million targeted in year 2000.

Businessmen and economy experts predict a large increase of trade exchanges following the setting up of a Moroccan-Egyptian free trade area, in force since April 1999.

The free-trade area related accord provides for the suppression, with immediate effect, of all duties on some sixty Moroccan and Egyptian products. Custom duties of more than 25 % will be gradually lowered by 5 % a year.

The council's recommendations will be submitted to the joint commercial commission, to convene in Cairo next November 21.