E commerce- fashion egypt

1-FDI regulations related to E- Commerce and retail
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Ways to get started!
The Government of Egypt has introduced a number of new regulations and laws which significantly strengthen the
national business climate for the growth of the e-commerce sector, as well as the economy as a whole. This
includes the issuance by the Central Bank of Egypt (CBE) in November 2016 of a new package of mobile payment
regulations removing key bottlenecks, which marks an important move toward substantially increasing mobile
payment services in Egypt, including in micro-financing. A National Payments Council to promote digital payments
was established in 2017. In January 2016, Egypt also approved its first bankruptcy law which, by removing the risk
of facing imprisonment in case of a failed bankrupted business, can help encourage youth entrepreneurs, as well
as investors. In addition, in June 2017, Egypt introduced a new investment law aimed at attracting FDI through a
series of tax and other incentives, and new procedures, substantially easing the “red tape” involved in
incorporating a company. This includes the establishment of an investors’ service centre “one-stop shop” for all
required licenses and an “electronic incorporation” platform system guaranteeing rapid respond to all investor
applications, as well as a “golden license” measure enabling the Prime Minister to issue a single approval covering
all necessary permits, licenses, contracting, etc., for strategic and national projects considered key to Egypt’s
development. To foster investment in technology and IT, the law also includes for the first time a framework for the
establishment of “technological zones”, where technological objectives can be pursued, including manufacturing
and developing electronics, programming and technological education.
Source: UNCTAD - United Nations Conference on Trade and Development

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1. The State shall ensure to the foreign investor the same treatment granted to the national investor. Under a decree issued by the Cabinet of
Ministers, an exception can be made granting the foreign investors a preferential treatment in application of the principle of reciprocity.
2. The invested assets shall not be subject to any arbitrary procedures or discriminatory decisions.
3. The State shall grant the non-Egyptian investors residence in the Arab Republic of Egypt throughout the term of the Investment Project
without prejudice to the provisions of the relevant regulating laws.
4. The Investment Projects may not be nationalized.
5. An administrative body may not revoke or suspend the licenses issued for Investment Project, nor may it reclaim the real property allocated
for same, unless it has served a notice on Investor comprising the violations with which Investor is charged, has heard Investor’s evidence and
has given Investor an adequate grace period to rectify the violations.
6. The State shall permit all cash transfers in respect of foreign investment to be freely and promptly transferrable to and from the State using a
freely convertible currency.
7. Investment projects have the right to import by themselves or through others what they need in construction, operation or expansion of raw
materials, production equipment, equipment and spare parts without having to be registered in the importers register (this is done by stamping
the import invoices from the General Authority for Investment until the start of production is determined) By the General Authority for
Investment and then the import card is imported production requirements by simple procedures).
8. Investment projects are entitled to export their products without having to register the exporters register.
9. Companies subject to the provisions of this law shall be subject to the provisions of the Customs Exemptions Law for the collection of a
customs tax in a unified category of 2% on all imported equipment, equipment and equipment necessary for its establishment.
10. Industrial projects shall have the right to import molds, moldings and other production materials of a similar nature with the provisional
release system without customs duties for temporary use in the manufacture and re-export of their products.
11. Investment projects shall grant an investment incentive against net profits subject to tax at rates ranging from 30-50% of the investment
costs of the project according to the investment map.
Source: GAFI- LAW No. 72 for year of 2017

2- Any restriction on foreign ownership of companies
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There is no restrictions on foreign ownership companies and there is a supportive governmental organization
called
ITIDA aspires to build momentum in the IT industry, by making Egypt one of the top global hubs for technology
and business services, the agency strives to further develop Egypt`s competitive advantages as one-stop shop for
foreign direct investors seeking to enhance their global offering and providing the Egyptian IT industry with the
right tools to increase IT/ITES exports.

3- List of most active VC “venture capitalists” and PE
“Private Equity” in Egypt, links to the news article on
their funding, average ticket size of their funding.
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links news article on their funding, average ticket size of their funding:
- https://egyptianstreets.com/2017/10/17/13-egyptian-businesses-make-forbes-top-list-of-arab-
startups/
- http://disrupt-africa.com/2017/01/egyptian-e-health-startup-vezeeta-raises-5m-funding/
- https://www.eshopworld.com/egyptian-ecommerce/
- https://www.businessoffashion.com/articles/news-analysis/africas-e-commerce-giant-jumia-sets-
sights-on-egypt
- http://www.egypttoday.com/Article/3/33850/Food-Delivery-App-Otlob-to-be-acquired-by-German-
Delivery
- https://www.wamda.com/2017/02/edfa3ly-finds-kuwaiti-safe-haven
- https://www.forbesmiddleeast.com/en/egypts-wuzzuf-raises-6-million-in-series-b-funding-from-four-
european-and-u-s-vc-funds/

4- List of Ecommerce players in Egypt and rough sense
of their size in terms of orders or GMV “Gross
Merchandise Volume”
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e-commerce players Souq and Jumia, who have invested heavily in Egyptian logistics hubs, local training, local
supplier initiatives and the creation of jobs. Jumia, for example, has partnered with the Egyptian Industries Union to
launch a “Made in Egypt” initiative which supports the development of local manufacturers. Through the initiative,
the products of local manufacturers are promoted and given visibility on the Jumia e-marketplace at a zero
commission rate fee until the end of 2017 as well as Souq was purchased by e-commerce giant Amazon in March
2017.
Jumia’s Orders:
Jumia’s local work may have only started in 2012, but the company has made great strides in the Egyptian e-
commerce scene. Growing from an average of 100 orders a day, the online marketplace now processes thousands
a day and has over 3000 vendors and local partners that they have helped develop. In 5 years, the company has
gained over 1.5 million subscribers, and manages online traffic of around 2 million shoppers monthly.
Souq’s Orders:
With 45 million online visitors per month; 8.4 million products in 31 categories and local operations in Saudi
Arabia, UAE and Egypt, Souq is the biggest e-commerce marketplace in the region. This acquisition will now help
the company stay on top of an area that has been one of Amazon’s traditional strengths: logistics.

5- Overall GDP of Egypt and % breakup- service,
manufacturing etc.
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Over all Egypt GDP
The Gross Domestic Product (GDP) in Egypt was worth 235.37 billion US dollars in 2017. The GDP value of Egypt represents 0.38 percent
of the world economy. GDP in Egypt averaged 76.57 USD Billion from 1960 until 2017, reaching an all time high of 332.90 USD Billion in
2016 and a record low of 4 USD Billion in 1962.

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Egypt GDP Annual Growth Rate
The GDP in Egypt expanded 5.40 percent year-on-year in the first quarter of 2018, up from 5.3 percent in the previous period. GDP
Annual Growth Rate in Egypt averaged 4.07 percent from 1992 until 2017, reaching an all time high of 7.70 percent in the fourth quarter
of 2007 and a record low of -3.80 percent in the first quarter of 2011.

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Egypt GDP FROM AGRICULTURE
GDP From Agriculture in Egypt increased to 96587.10 EGP Million in the first quarter of 2018 from 88705.60 EGP Million in the fourth
quarter of 2017. GDP From Agriculture in Egypt averaged 61298.93 EGP Million from 2007 until 2018, reaching an all time high of
125125.10 EGP Million in the third quarter of 2017 and a record low of 42897.60 EGP Million in the second quarter of 2007.

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Egypt GDP FROM CONSTRUCTION
GDP From Construction in Egypt decreased to 54855.80 EGP Million in the first quarter of 2018 from 54931.10 EGP Million in the fourth
quarter of 2017. GDP From Construction in Egypt averaged 22135.15 EGP Million from 2007 until 2018, reaching an all time high of
57144.50 EGP Million in the second quarter of 2017 and a record low of 10878.70 EGP Million in the third quarter of 2007.

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Egypt GDP FROM Manufacturing
GDP From Manufacturing in Egypt decreased to 152222.40 EGP Million in the first quarter of 2018 from 160670.40 EGP Million in the
fourth quarter of 2017. GDP From Manufacturing in Egypt averaged 75800.27 EGP Million from 2007 until 2018, reaching an all time high
of 160670.40 EGP Million in the fourth quarter of 2017 and a record low of 51326.60 EGP Million in the third quarter of 2007.

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Egypt GDP FROM Transport
GDP From Transport in Egypt decreased to 37545.80 EGP Million in the first quarter of 2018 from 37907.20 EGP Million in the fourth
quarter of 2017. GDP From Transport in Egypt averaged 20383.33 EGP Million from 2007 until 2018, reaching an all time high of 45953.20
EGP Million in the second quarter of 2017 and a record low of 11148.90 EGP Million in the first quarter of 2008.

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Egypt GDP FROM Mining
GDP From Mining in Egypt increased to 109152.20 EGP Million in the first quarter of 2018 from 82516.90 EGP Million in the fourth
quarter of 2017. GDP From Mining in Egypt averaged 65889.79 EGP Million from 2007 until 2018, reaching an all time high of 109152.20
EGP Million in the first quarter of 2018 and a record low of 52089.80 EGP Million in the third quarter of 2016.

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GDP Per CAPITA
The Gross Domestic Product per capita in Egypt was last recorded at 2785.37 US dollars in 2017. The GDP per Capita in Egypt is
equivalent to 22 percent of the world's average. GDP per capita in Egypt averaged 1542.04 USD from 1960 until 2017, reaching an all
time high of 2785.37 USD in 2017 and a record low of 631.10 USD in 1960.

6- Overall retail market size of Egypt and break up –
Fashion, electronics, grocery, etc.
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Source: Euromonitor, FAS Cairo office research.

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7- What are the most fashion brands in Egypt-
international brands and local brands. ASP “average
selling price” (Price Points) of their products.
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ASP
EGP 800 to 8000
ASP
EGP 700 to 5000
ASP
EGP 300 to 5000
ASP
EGP 300 to 5000
ASP
EGP 80 to 1000
ASP
EGP 150 to 1400
International Brands

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ASP
EGP 80 to 700
ASP
EGP 300 to 2500
ASP
EGP 200 to 2200
ASP
EGP 300 to 3000
ASP
EGP 80 to 3000
ASP
EGP 150 to 1400
International Brands

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Local Brands
ASP
EGP 200 to 2000
ASP
EGP 200 to 3000
ASP
EGP 100 to 2500
ASP
EGP 150 to 800

8- What is the price of two wheeler?
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Bajaj: Boxer 150/ Price: EGP11200

Sanyang: SYM Fiddle II/ price: EGP 13500

Dayun: 3/ price: EGP11500

Halwa: hal express /price : EGP
13300

9- Salaries of: Field Executive, operation head,
developer, analyst, accountant, UI/UX expert, call
center agent, photographer, image editor/ Graphics,
content writer
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Ways to get started!9- What is the Salary level for
A- Field executive who can drive bike “ EGP 1200 TO 1500”, vocational education
B- Operation Head Managing 50 People in a warehouse, “EGP 15000 to 20000”
C- Full Stack Developer in Python/Java “EGP 5000 to 7000”
D- Analyst wit 3-5 years experience “EGP 4000 to 6000”
E- Accountant “EGP 2500 to 4500”
F- UI/UX expert “EGP 6000 to 8000”
G- Call center agent/ Executive “EGP 2000 to 3000”
H- Photographer “EGP 3000 to 4500”
I- Image editor/ graphics “EGP 2000 to 4000”
J- Content writer “EGP 2000 to 4000”
Source: citehr

10- What is the Salary level of CXO of a 10 Mn USD/
annum revenue, 100 Mn USD/ annum revenue
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11- What is the Salary level an associate, EM and
partner at top tier consultancy firm “MCKINSEY, ATK,
BGC, etc.)
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11- What is the Salary level an associate, EM and partner at top tier consultancy firm “MCKINSEY, ATK, BGC,
etc.)
“USD 5,000 to 15,000”

12- Fuel price- Petrol and diesel
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Source: http://en.thefuelprice.com/Feg
LPG/ liquefied petroleum gas- NGV/ Natural Gas Vehicles

13- Existing courier companies in Egypt, which is
considered best for retail
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Existing Courier Companies in Egypt

Which is considered best for Retail
- TNT Express
- FedEx - Aramex

which is considered best for End Consumer
- Middle east courier company - TNT Express
- FedEx - DHL Express

14- Rate card of courier company- price per
kg/packets, zone wise rate, service level-TAT and
compliance level/does same day delivery/next day
delivery possible with existing courier company.
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Domestic price list
Compliance: FedEx and Aramex only pay EGP 100 as compensation for any shipment lost,
TNT, UPS, and DHL : insurance paid is 1% if the shipment costs $1800 and 360 EGP if it
less than $1800 and the compensation is equal to the shipment cost according to their
calculation, if there is no invoice for it.

Early delivery
next day Before 10 AM + EGP 75
From 10am to 1030 am + EGP 60

15- Do Courier companies provide COD- if Yes- what
are the charges for the service, how long do the
courier companies take to return the money to the
business.
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Yes, it’s provide COD but the business should
having account holder and it takes about 15
days to return the money to the business.
The charge is: %2 of shipment or EGP 18
“whichever is more expensive”

16- How many fashion seasons are there:
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Summer: “June, July, August”
Winter: “December, January, February”
Spring, people usually use the same clothes of summer
Autumn, people usually use the same clothes of winter

17- Are there any special occasion/ festival where
people shop a lot- pleases share such events and the
months along with comments
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- Ramadan and Eid El Fitr that following Ramdan /lesser Bairam on “June” and it’s changed every day based on
lunar year is called the “Islamic calendar” or “Hijri-Qamari calendar”
- Eid El Adha/ lesser Bairam “ and it’s almost 70 Days difference Between Eid Ul Fitr And Eid Ul Adha
- Coptic Easter on April
- Sham El Nesim “Traditional Holiday” on April
- Eastern/ Coptic Christmas on January
- Sales on August to October and same period for “Back To School”/ sales on January to February/ White Friday “It
runs from November 22-25, well-known international brands have offered discounts up to 50 percent, while
others offered 25 percent”.

18- Size chart of the population if possible for M and
F eg. 10% of adult M are size S in Shirt, for shoes E6
etc.
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Shirt sizes Females
Source: Finder

Shirt sizes Males
Source: Finder

Shoes sizes Females & Males
Source: Finder

19- For Marketing- what are the channels generally
used- News paper, magazine, TV, Radio etc. Rough
sense of costing
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Channel/ cost
Magazines
Newspaper
PR
Events
Radio
TV

20- How easy to let go employees – legal and cultural
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It’s easy to hire or terminate employees according to job contract

21- How is internet used- smartphone, laptop- office
or person-%of population using smartphone
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Smartphone Users: The statistics 26% of population are using smartphone.

Desktop vs Mobile vs Tablet Market Share in Egypt Desktop :50.55%
Mobile: 47%
Tablet: 2.45%
July 2017 - July 2018
Source: Statcounter

22- Smart phone device used- Samsung, Huawei,
Apple, Infix, Lenovo, and Oppo
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Source: Statcounter

23- Cost of Data/Internet, year wise trend in usage of
data and cost of data
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Source: MCIT

24- inflation for the last 5 years and projection for
next five years
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24- inflation for the last 5 years and projection for next five years
Inflation Rate:

Inflation Rate:
Source: Sattista

25- Currency fluctuating in USD for last 3 years and
projection for next 3 years
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Source: wallet Investor

26- Rental cost for Warehouse space
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25-30 EGP/ Meter/ Month

27- Number of language spoken-% break up of
population
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Source: Source: Australian Bureau of Statistics, Census of Population and Housing, 2016 (Usual residence data)
Compiled and presented by .id, the population experts.
66.4
17.6
16
% population
Arabic English Others

28- Total e-commerce size and breakup- It was in the
ppt shown during discussion. Pls add the 50%
remaining e-commerce breakup
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29- Demographical breakup, income level breakup.
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Source: CAMPAS
Item
Urban
in EGP
Rural in
EGP
Average of Annual Per Capita Expenditure 10184.2 6659.3
Average o Annual Per Capita Total expenditure 10612.3 7095.8

Percentage distribution of Annual average per capita Expenditure by Main Groups (urban & rural) 2015
Source: CAMPAS
Main Expenditure Group Urban % Rural %
Food and non- Alcoholic beverages 30.4 38.9
Alcoholic Beverages, Tobacoo and
Narcotics 4.5 4.9
Clothing and footwear 5.3 6.1
Housing water, electricity, Gas &
other Fuels 19 15.8
Furnishings, H.H equipment and
rotuine H.H maintenance 4 4.2
Health 10.1 10
Transport 7.4 5.1
Communication 2.9 2
Recreation and culture 2.2 1.9
Education 6.1 3.3
Restaurants & Hotels 4.7 3.2
Miscellaneous Goods & Services 4 3.7

Percentage distribution of Annual average per capita Expenditure by Main Groups (urban & rural) 2015
Source: CAMPAS
30.4
4.5 5.3
19
4
10.1
7.4
2.9 2.2
6.1 4.7 4
38.9
4.9 6.1
15.8
4.2
10
5.1
2 1.9 3.3 3.2 3.7
0
5
10
15
20
25
30
35
40
45
Food and non-
Alcoholic
beverages
Alcoholic
Beverages,
Tobacoo and
Narcotics
Clothing and
footwear
Housing water,
electricity, Gas &
other Fuels
Furnishings, H.H
equipment and
rotuine H.H
maintenance
Health Transport Communication Recreation and
culture
Education Restaurants &
Hotels
Miscellaneous
Goods &
Services
Urban % Rural %

30- General expectation of ROI from
A- Equity Market
B- Debt Market
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