Private sector feasibility studies : final consultant"s report

investment in Egypt. Despite some delays, the project is now firmly launched. CTIC has accomplished all major tasks close to schedule. Ten Egyptian industrial sectors were surveyed to identify investment opportunities and the resulting reports (covering the production, processing, and distribution of Egyptian food crops, livestock, poultry, and fish; the construction, electronic, chemical, and automotive parts industries; pharmaceutical and health care products; integrated agribusiness; and maintenance and repair facilities and services) were distributed to 4,500 U.S. companies. Surprisingly, most offical Egyptian sources (even CAPMAS - the Central Agency for Public Mobilization and Statistics) had very useful little data on which the sectoral surveys could be based. One, the General Organization for Industrialization (GOFI), refused to share its data. Public sector company managers were cooperative, however, and a large measure of enthusiasm for increased U.S. investment was found. The response of U.S. companies to the sector reports (and to project-sponsored seminars and visits from Egypt"s Investment Authority - IA) has been quite good - 70 companies have requested applications for the project reimbursement program and 36 have submitted applications. There have been long delays in acknowledging and reviewing these applications, however, and thus far just 3 reconnaissance visits and 9 feasibility studies have been approved for reimbursement (vs. targets of 20 and 20 by 9/82). The reimbursement program has also been impeded by IA"s decisions to exclude CTIC from this activity and to close its New York bureau. Both on-the-job training and formal 3-week courses were provided to IA counterparts, but the IA lacks a permanent structure within which these counterparts can exercise their research, promotion, and investor support skills. Seven recommendations are made, key among them to obtain vigorous, top-level IA support, to periodically update the sectoral surveys, and to provide counterparts with intensive English-language training.