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Egypt’s Food & Beverage Sector
By Mahmoud Elbassyouny, Executive Director, CFI.
International Food Policy Research Institu...
Contents
Economic Outlook
Why Egypt ?
Sector Overview
The Future of the F&B Sector
Regulations and Standards
Main trends
E...
Economic Outlook
International Food Policy Research Institute (IFPRI) Dec. 2018
The Economy
2015/2016 2016/2017 2017/2018
Real GDP growth rate 4.3% 4.2% 5.2%
(1st half 2017/18)
Inflation rate (CPI urban...
The Economy
1.8%
2.2% 2.2% 2.1%
4.4% 4.3% 4.2%
5.2%
2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 1st half
2017/...
The Economy
2018, IMF expected GDP growth to reach 6% over the medium term.
Egypt’s unemployment rate declined 1.4 % dur...
The Economy
 August 2018, Moody's Investors Service has upgraded Egypt's credit outlook rating from
“STABLE" to “POSITIVE...
Why Egypt
International Food Policy Research Institute (IFPRI) Dec. 2018
2
Why Egypt
•Allows Egypt to connect established and emerging markets.
Competitive Geographical
Location
• approx. 100 Mil...
Sector Overview
International Food Policy Research Institute (IFPRI) Dec. 2018
The F&B Sector
Estimated Investment $25 bn.
Accounted for about 4.7% of the country’s GDP.
Grown with a Compound Annual...
The F&B Sector
Exports reach $ 1.8 bn from Jan till Aug. 2018.
Top 5 Food Exports (Prepared and Preserved Vegetables, Dr...
The Future of the F&B Sector
International Food Policy Research Institute (IFPRI) Dec. 2018
Increased
R&D
spending
Attempting to
create new
trade
agreements
Branding Egypt
as a food
destination
Increase
emphasis on...
Regulations and standards
International Food Policy Research Institute (IFPRI) Dec. 2018
National Food Safety Agency (NFSA)
2
The Egyptian Parliament established the National Food Safety Authority (the “NFSA”) ...
Industrial Development Authority (IDA)
2
 The new regulations will reduce the waiting period for obtaining
industrial lic...
Chamber of Food Industries CFI
2
Established in 1958, the CFI is a non-profit organization that acts as the official repr...
Main trends
International Food Policy Research Institute (IFPRI) Dec. 2018
Trends
Food safety
Changing of customer preferences
Digital transformation
2
Trends
 Now that more women are entering the workforce, they have less time to complete certain tasks such as
cooking w...
Egypt Vision
International Food Policy Research Institute (IFPRI) Dec. 2018
2
To become one of the largest 20 economies worldwide.
Economic reform
Private sector development.
 Infrastructure deve...
Thank you
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Mahmoud Elbasyouny (The Federation of Egyptian Industries)• 2018 IFPRI Egypt Seminar: “Advancing the Food System for Growth, Job Creation and Better Nutrition in Egypt”

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as part of the IFPRI-Egypt Seminar Series- funded by the United States Agency for International Development (USAID) project called “Evaluating Impact and Building Capacity” (EIBC) that is implemented by IFPRI.

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Mahmoud Elbasyouny (The Federation of Egyptian Industries)• 2018 IFPRI Egypt Seminar: “Advancing the Food System for Growth, Job Creation and Better Nutrition in Egypt”

  1. 1. Egypt’s Food & Beverage Sector By Mahmoud Elbassyouny, Executive Director, CFI. International Food Policy Research Institute (IFPRI) Dec. 2018
  2. 2. Contents Economic Outlook Why Egypt ? Sector Overview The Future of the F&B Sector Regulations and Standards Main trends Egypt Vision – 2030
  3. 3. Economic Outlook International Food Policy Research Institute (IFPRI) Dec. 2018
  4. 4. The Economy 2015/2016 2016/2017 2017/2018 Real GDP growth rate 4.3% 4.2% 5.2% (1st half 2017/18) Inflation rate (CPI urban) 8.38% (Jan 2015) 14% (Jan 2016) 14.4 % (Feb. 2018) Population 89 Mn (Jul 2015) 91 Mn (Jul 2016) 96.5Mn (Feb. 2018) Net Foreign Direct Investment (USD bn) 6.9 7.9 3.8 (1st Half 2017/18) International Reserves (USD bn) 17.5 (Jun. 2015) 31.3 (Jun. 2016) 42.6 (March 2018) Unemployment Rate (%) 12.8% ( 2015) 12.5% (2016) 11.8% (2017) Newly established companies (No. of Companies) (GAFI data ) 12081 15358 9685 (1st half 2017/18) Doing Business Rank 126 (2016) 122 (2017) 128 (2018) Global Competitiveness Report Rank 115 100
  5. 5. The Economy 1.8% 2.2% 2.2% 2.1% 4.4% 4.3% 4.2% 5.2% 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 1st half 2017/18Source: Central Bank of Egypt GDP Growth Rate
  6. 6. The Economy 2018, IMF expected GDP growth to reach 6% over the medium term. Egypt’s unemployment rate declined 1.4 % during the first quarter of 2018 to 10.6 %, compared to 12% in the same period of 2017. Egypt holds the largest population size across the Middle East and North Africa (MENA) region. Its population of 97 mn in 2017 is set to increase to 102.2mn by 2021.
  7. 7. The Economy  August 2018, Moody's Investors Service has upgraded Egypt's credit outlook rating from “STABLE" to “POSITIVE" for the first time since 2015. May 2018, Standard & Poor's (S&P) global rankings lifted Egypt's sovereign credit rating from B- to B, improving Egypt's rankings from B- in less than a year. Egypt's ratings are supported by progress in implementing an economic reform program, greater macroeconomic stability and improving external finances.
  8. 8. Why Egypt International Food Policy Research Institute (IFPRI) Dec. 2018
  9. 9. 2 Why Egypt •Allows Egypt to connect established and emerging markets. Competitive Geographical Location • approx. 100 Million, ​50% of which are below the age of 30.Young Growing Population •Almost 1 million new consumers are added to the Egyptian market each year.Growing Market •Egypt is the second largest signatory to trade agreements in the world. GAFTA, COMESA, AGADIR, QIZ, PARTNERSHIP AGREEMENT EU,…etc. Trade Agreements •More than US$ 15 Billion investments in transportation, electricity networks and irrigation projects.Infrastructure 1 2 3 4 5
  10. 10. Sector Overview International Food Policy Research Institute (IFPRI) Dec. 2018
  11. 11. The F&B Sector Estimated Investment $25 bn. Accounted for about 4.7% of the country’s GDP. Grown with a Compound Annual Growth Rate 15 % from 2011 to 2016. Expected Compound Annual Growth Rate 16 % from 2017 to 2021. Food Consumption is expected to record Compound Annual Growth Rate 16.6 % from 2016 to 2021. Growing demand for locally produced products (more competitive due to inflation). Fruits, Vegetables and Juices consumption expected to show strong growth.
  12. 12. The F&B Sector Exports reach $ 1.8 bn from Jan till Aug. 2018. Top 5 Food Exports (Prepared and Preserved Vegetables, Dried and Chilled Fruits and Vegetables, Frozen Fruits and Vegetables, Proceeded Cheese and Essential oils)  Potential Value Chains (Frozen Fruits and Vegetables, Processed Poultry, Juice Concentrates and Fish) Potential for exports (dates, olive and olive oil) Compound Annual Growth Rate through 2021 ( 18.4% Poultry, 16.3% Bread, Rise and Cereals, 15.6% Dairy)
  13. 13. The Future of the F&B Sector International Food Policy Research Institute (IFPRI) Dec. 2018
  14. 14. Increased R&D spending Attempting to create new trade agreements Branding Egypt as a food destination Increase emphasis on value added products Align product innovation with changing global taste Capitalize on political and government backing/endors ment The Future of the F&B Sector
  15. 15. Regulations and standards International Food Policy Research Institute (IFPRI) Dec. 2018
  16. 16. National Food Safety Agency (NFSA) 2 The Egyptian Parliament established the National Food Safety Authority (the “NFSA”) by virtue of the new law 1/2017 (the “NFSA Law”).  As per Article 2 of the NFSA Law, NFSA’s mandate is “achieving the requirements of food safety in a way as to preserve human health and safety”. The National Food Safety Agency of Egypt (NFSA) is an open and independent authority to protect consumers’ health and consumers’ interests by ensuring that food consumed, distributed, marketed or produced in Egypt meets the highest standards of food safety and hygiene.
  17. 17. Industrial Development Authority (IDA) 2  The new regulations will reduce the waiting period for obtaining industrial licenses to establish new facilities from 600 days to between 7 and 30 days. Investors in Egypt have long complained of lengthy waiting times for obtaining approvals, with the World Bank ranking Egypt number 122 of 190 countries on its 2017 Doing Business Index, partly because of difficulties obtaining permits and licenses According to the new law, the waiting period for 80 percent of industries will be reduced to one week or less, while the remaining 20 percent will require about one month due to their higher risks to health, environment, safety, or security, or a combination of these factors
  18. 18. Chamber of Food Industries CFI 2 Established in 1958, the CFI is a non-profit organization that acts as the official representative of the Egyptian F&B industry. The CFI has a member base of 7700 companies and has a platform that represents the industry, solving and developing every aspect of the business environment that may affect the industry’s competitiveness on a domestic and global scale. Food Export Council FEC FEC is to be a lean institution acting as a think tank, catalyst and facilitator for all actions and policy advocacy needed to continuously and dynamically enhance export objectives of the Egyptian food industry at the macro level as well as realize of the aspirations of the Egyptian food exporters.
  19. 19. Main trends International Food Policy Research Institute (IFPRI) Dec. 2018
  20. 20. Trends Food safety Changing of customer preferences Digital transformation
  21. 21. 2 Trends  Now that more women are entering the workforce, they have less time to complete certain tasks such as cooking which has led more households to begin purchasing frozen semi-prepared food products in an effort to cut preparation times.  There has also been a growth in the consumption of packaged confectionery (baked specifically) products which could be an indicator that local consumers are looking for an on-the-go alternative to traditional meals, in order to save time.  In addition, Egypt has seen an increase in the consumption of packaged milk, growing by approximately 10% in 2016. This could be attributed to an increase in awareness over health hazards related to loose milk. Despite that, the majority of milk consumers in Egypt continue to consume loose unpackaged milk.
  22. 22. Egypt Vision International Food Policy Research Institute (IFPRI) Dec. 2018
  23. 23. 2 To become one of the largest 20 economies worldwide. Economic reform Private sector development.  Infrastructure development
  24. 24. Thank you

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