French economic presence in Egypt

France was Egypt’s 12th trading partner in 2019

 

 © Photo: Unsplash

The volume of trade between France and Egypt has reached its highest record level since 2012 to touch 3 billion euros in 2019. According to the Central Bank of Egypt, France was Egypt’s 12th trading partner in 2019 (corresponding to 2.9% of Egypt’s foreign trade).

Egypt is France’s 39th largest trading partner. Yet, France is the world’s 8th largest trade surplus, while it is the third largest surplus in the Middle East and North Africa (Mena Region) and is the 1st largest trade surplus in Africa.

France’s trade surplus with Egypt is growing strongly (up 68%), touching 1.6 billion in 2019 after a sharp decline in 2018 (937 million):

– This result can be explained particularly due to the resumption of wheat exports after a two-year interruption.

– And a drastic increase in exports of transport equipment (€580 million euros in 2019)

French economic presence and investments

In 2019, Egypt is the first FDI host country in the African continent, with approximately 12.7 billion of FDI flows. France is the 9th largest foreign investor in Africa and the 3rd largest investor in the European Union (EU), with 1.8% of FDI flows.

Approximately 160 Egypt-based French subsidiaries are currently involved in the Egyptian market, employing more than 50,000 personnel and have a turnover of more than 5 billion. The French subsidiaries have been able to enter the Egyptian economic landscape in a sustainable manner, establishing a diversified presence in the following sectors, to mention but a few:

Construction and Industry sector (such as Air Liquide, Vinci, Bouygues, Saint Gobain..)

  • Energy sector: Total, Distribution, Total Eren, Engie, Voltalia, EDF EN
  • Water Treatement: Véolia, Suez
  • Transportation: RATP Development, ADPI;
  • Manufacturing of electrical and household appliances or automobiles: with the presence of companies such as Schneider Electric, Legrand, Nexans, Groupe Atlantic;
  • Agri- food:  with the presence of companies such as Lactalis, Danone, Bel, Savencia, Lesaffre, Soreal, Paul, Brioche Dorée…
  • Pharmaceutical and cosmetic industry:  Servier, Ceva, L’Oréal, Sanofi, etc…
  • Services: Orange, Crédit Agricole, Axa, Teleperformance, ATOS, Cegedim, Gide, etc…
  • Logistics: CMA-CGM, Bolloré, etc…
  • Major Stores: Carrefour, Decathlon, etc…
  • Tourism: Air France, Accor Group, etc…
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