Japanese companies to invest in Egypt projects worth $18 bln

[DJKeefy]

Japanese companies to invest in Egyptian projects worth $18 bln.

Japanese companies are set to take part in Egyptian projects worth about 2 trillion yen ($17.7 billion) in the electricity and other sectors, Reuters reported, quoting Prime Minister Shinzo Abe as saying on Monday after meeting Egyptian President Abdel-Fattah El-Sisi in Tokyo.

Abe did not elaborate on the projects, but an official at Japan's foreign ministry said Japanese and Egyptian companies are scheduled to sign more than 10 memorandums of agreement on Wednesday.

On Monday, Egyptian Minister of International Cooperation Sahar Nasr signed three concessional loan agreements with Japan International Cooperation Agency worth more than $450 million to finance projects in the energy and transport sectors.

Abe and El-Sisi also announced that they agreed to hold a dialogue between their defence and foreign ministry officials periodically to strengthen security ties.

El-Sisi's visit to Japan comes as part of his third tour to Asia.

Earlier Tuesday he met with Japan's Crown Prince Naruhito in Tokyo.

The Egyptian president also met with a number of Japanese CEOs, including the CEOs of Mitsubishi Heavy Industries and Toyota motors to discuss investments opportunities in Egypt.

Source: http://english.ahram.org.eg/News/189911.aspx

[A-Four]

Here we go again with these 'memorandum of understandings', the JICA will come up with $0.5 Billion. Where on God's earth do they pick up these daft statements.

Question. Who in their right mind is going to finance such a project of $17 Billion in a country like Egypt ?

P.S. - Anyone noticed this months profit from the Suez Canal........Oh Boy. .... .

[Major Thom]

Another question - the visa situation? Why invest on a tourist visa?

[carrie]

I thought you said you were fed up of talking about the visa situation MT but here we go again.
The Japanese have invested heavily in Egypt before why not again A Four? Surely Egypt must have some potential for growth.

[A-Four]

The Japanese have invested heavily in Egypt before why not again A Four? Surely Egypt must have some potential for growth.

Not easy to explain here Carrie, but will do my best.

I would imagine that your income comes from the U.K. on a monthly basis. You receive this as £ sterling, you are careful that you do not change too much to LE because of the fear of devaluation. It is the same for international business. No company will sink $1 Billion into a project as a signed agreement one day to find that the next day their project in Egypt has instantly lost 20% of its investment, without even laying one brick.

This is the major problem in Egypt at the moment. Add to this the daily shambolic actions with in the House of Representatives (Egypt's House of Commons), where no legislation on taxation is being made. The 10% V.A.T. was initially past in law five years ago, though still waiting to be implemented. New rules on civil service pay and conditions has still to be ratified, again five years on.

Egypt can only get what is known as dark loans from its near neighbours, who fear the total collapse of Egypt. Again five years down the line a $3.5 Billion loan from the I.M.F. agreed with Mubarak is still on hold, awaiting the conditions required to allow this loan.

As I have repeated on here Egypt is simply dithering, each day gets worse,.......though it continues to sign these silly 'memorandums of understanding',......by now most people really do understand these, but it makes the President look good.

[A-Four]

Further to my above post, if we look at why Barclay's Bank has pulled out of the whole of Africa, it is not really the excuse they are giving here in London. Their dividends from many countries there are a very respectable 17%, however, when you balance this with a devaluation of currencies such as the South African Rand of 20% this year, then you end up with a 3% loss. Barclay's know that the Africa situation is only going to get worse.

God only knows what there view of Egypt's future will be.

[Dusak]

Well at least he's trying to do what he thinks is best for the country, capitalizing on those with money to invest. If the Anti Christ ever enters the building, Egypt, I think, can kiss goodbye to the cash they are currently receiving from the US.

[carrie]

Can't believe that he is so close to becoming the Republican nominee. American's never fail to amaze me.

[Major Thom]

Your so right Carrie, which ever way the wind blows!!

No I mentioned the visa for some fun, or are the Japenese treated different, will they get a residents visa

[carrie]

I would have thought if they are going to invest 18 Billion they can have anything they like.