US Investment Promotion Office (USIPO) evaluation report

investment in Egypt. The evaluation covers the period 1981- 11/90. The project was unable to achieve its original goal of stimulating U.S. investment and therefore was drastically revised in 1989. Although some increases in U.S. investment occurred, the overall U.S. corporate presence remains small -- particularly for a country as large as Egypt. The total number of U.S. investments amounts to about 50 ventures. The project's shortcomings in investment promotion are primarily due to the lack of improvement in Egypt's business environment. However, numerous internal weaknesses in the project were also present. Until 1986, the project remained merely responsive to investor inquiries, rather than actively carrying out formal marketing campaigns. Until 1989, the project was hindered by a series of institutional shortcomings, including a lack of clearly defined methods and performance targets; an absence of specific strategic annual work plans; inappropriately experienced or motivated personnel; staff rivalries and personality clashes; and a lack of promotional tools. Beginning in late-1988, serious steps were taken to change the project's focus, goals, and implementation strategy. Promoting exports, rather than investments, became the major focus, new personnel were recruited, and the existing staff restructured. The project was also made responsible for conducting private sector feasibility studies. Since this time, project management and oversight have improved markedly. While achievements have been limited, they are improved over the previous period. The project has assisted about 25 companies in gaining export contracts.