Identifier
Created
Classification
Origin
09CAIRO1985
2009-10-19 15:54:00
UNCLASSIFIED
Embassy Cairo
Cable title:  

EGYPT'S ECONOMY: October 19 PRESS ROUND-UP

Tags:  ECON EINV EFIN ETRD EAGR ENRG PGOV EG 
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VZCZCXYZ0009
RR RUEHWEB

DE RUEHEG #1985 2921554
ZNR UUUUU ZZH
R 191554Z OCT 09
FM AMEMBASSY CAIRO
TO RUEHC/SECSTATE WASHDC 3924
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUEHRC/USDA FAS WASHDC
UNCLAS CAIRO 001985 

SIPDIS

STATE FOR NEA/ELA

E.O. 12958: N/A
TAGS: ECON EINV EFIN ETRD EAGR ENRG PGOV EG
SUBJECT: EGYPT'S ECONOMY: October 19 PRESS ROUND-UP

UNCLAS CAIRO 001985

SIPDIS

STATE FOR NEA/ELA

E.O. 12958: N/A
TAGS: ECON EINV EFIN ETRD EAGR ENRG PGOV EG
SUBJECT: EGYPT'S ECONOMY: October 19 PRESS ROUND-UP


1. (U) The following are notable economic news stories that appeared
over the past week in the Egyptian press:

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Telecom Egypt is Losing Customers
--------------


2. (U) Amr Badawi, Chairman of the National Telecommunication
Regulatory Authority (NTRA),told the press that state-owned Telecom
Egypt (TE) lost 1.4 million customers over the last three months,
dropping from 12 million subscribers to 10.6 million. The decrease
is largely due to the tough competition that TE, the sole fixed-line
operator in the country, is facing from the three wireless
operators. In an effort to try to compete with the wireless
operators, TE announced the reduction of the price of a phone call
to areas outside Cairo to 3 piasters (roughly half a cent) per
minute from eight piasters per minute, which is lower than the
prices offered by the wireless operators (Al Alam Al Youm, Al Masry
Al Youm, 10/13/2009).

--------------
Ministry of Investment Plans to Resume Privatization
--------------


3. (U) The Ministry of Investment has decided to resume its
privatization initiative, known as the asset management program, in

2010. This marks a return to Egypt's traditional privatization
program, after the GOE flirted with a plan to give each citizen over
the age of 21 a tiny share of state companies, a plan that was
widely criticized by political and civil society associations. The
Ministry of Investment has finalized a list of 30 to 40 state-owned
companies for which it will begin offering private shares, pending
approval by the Council of Ministers. According to the Ministry of
Investment, total privatization proceeds reached LE57.4 billion
(US$10.44 billion) by FY2008/2009, for the sale of 409 companies
since 1991 (Al Masry Al Youm, 10/13/2009).

--------------
Rice Export Restrictions Modified
--------------


4. (U) Minister of Trade and Industry Rachid Mohamed Rachid
announced the he would reverse previous plans to require rice
exporters to supply a portion of their crop to a government body, a
move that had been intended to ensure domestic supply. Rachid's
announcement will separate the process of acquiring rice export
licenses from the requirement to provide the General Authority for
Supply and Commodities (GASC) with rice. Rice exports will be
limited to 450,000 tons in 2009/10. In addition, export duties on
rice will vary based on the difference between domestic and
international rice prices. (Al Ahram, Al Alam Al Youm, 10/14/2009).

--------------
Former UNEP Director Discusses Pollution, Climate Change
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5. (U) Mostafa Tolba, who was the executive director of the United
Nations Environment Program (UNEP)for seventeen years, told the
press that the use of polluted water for irrigating food crops,
which was reported in several governorates, should be considered a
criminal act. Tolba added that Egypt does not have an integrated
system to deal with or treat solid waste or wastewater, noting that
90% of Egyptian villages do not have wastewater treatment facilities
and therefore face extensive pollution of surface and ground water.
Tolba also stressed the dangerous impacts of climate change on Egypt
and called for the establishment of a national committee to address
it. Tolba estimates that Mediterranean Sea levels are rising at a
faster than expected rate(Al Masry Al Youm, 10/13/2009).

--------------
Egypt May Increase Investment Ventures with Iraq
--------------


6. (U) Osama Saleh, Chairman of the General Authority for Investment
and Free Zones (GAFI),predicted that Egyptian-Iraqi investment
cooperation would soon increase, especially in the fields of
industrial development, urban development, and tourism (Al Ahram &
Al Akhbar, 10/18/2009)

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