K. Fragogiannis: Strengthening the economic cooperation between Greece and Egypt

The Deputy Minister of Foreign Affairs elaborates on the “strong”, “consolidated” Greek-Egyptian economic cooperation in various fields that “reflects the excellent state of bilateral political relations”, but also on their further development possibilities, with the planning of a visit to Egypt by a business delegation on Economic Diplomacy and Extraversion Costas Fragogiannis in an interview with the Egyptian newspaper “Al Ahram”.

Mr. Fragogiannis, expressing the opinion that the future lies in the collaborations in the fields of energy and the environment, emphasizes that in addition to the collaboration in natural gas projects, there are also great possibilities for synergies in the field of solid and liquid waste management. At the same time he explains that cooperation in ports and shipping is another area of ​​development, with the expansion and establishment of regular shipping links for the movement of products to and from Egypt. It also emphasizes the possibilities offered by tourism to increase tourist flows, by jointly organizing cruises, as well as cooperation in the field of innovation and start-ups, with the aim of developing new technologies for agriculture and food security .

Regarding the tripartite Egypt-Greece-Cyprus summit, Mr. Fragogiannis states that “the long-term bonds of friendship and strong relations between the three countries have contributed to the establishment of one of the most advanced and active forms of cooperation in our region, which is a model productive and multi-level cooperation in the area of ​​the Eastern Mediterranean”. He explains that since the first summit in 2014, nine more have been held and agreements have been signed in a wide range of sectors” with joint actions “taking place in various sectors, from tourism and small and medium enterprises, to energy and the protection of environment”. “Progress” he underlines “is substantial and continuous, despite the various obstacles and challenges we have faced”.

Referring in particular to the memorandum signed during the last summit in Athens, on October 19, 2021, for the electrical interconnection between Egypt and Greece, he points out that it is “a project of strategic importance, because it promotes energy security and prosperity, especially in this period of time , that the energy crisis affects the whole world”.

“The project”, he clarifies, “is part of Greece’s focus towards an energy policy that seeks and ensures the maximization of energy security and the diversification of sources and routes”. He adds: “The project envisages the electrical interconnection of the Egyptian and Greek systems in order to transfer 100% clean energy produced by high-efficiency renewable energy sources to Egypt.” “Besides,” he points out, “the project contributes to tackling both climate change and the greenhouse effect, through the use of clean and renewable energy. Part of the transferred energy will be consumed in Greece, another part will be used to produce green hydrogen , while another part will be transferred to Europe. Among its other benefits, the electrical interconnection also strengthens the infrastructure of the electricity networks of Egypt and Greece.”

“We are making sure,” adds the Deputy Minister of Foreign Affairs, “to expand our cooperation in new areas. In particular, we are developing our cooperation in the field of electricity production and distribution, with the aim of strengthening our energy security and diversifying our energy sources “.

In this context he refers to the two “important” memoranda of understanding signed by the two countries in the field of energy cooperation – one for interconnection of the two countries’ electricity grids and one for cooperation in the field of natural gas. At the same time he points out that “many Greek shipowners have already started some LNG shipments from Egypt to our country, placing Egypt in the index of our LNG suppliers”.

The Suez Canal agreement with the Port of Thessaloniki

He also places particular emphasis on the agreement signed on January 26, 2022, by Egypt’s Suez Canal Economic Zone (SCZone) and the Thessaloniki Port Authority (ThPO), “which is expected to contribute to the development of international trade and the increase of business activities between Asia and Europe”, as well as in the two bilateral legal texts signed last June between Greece and Egypt:

-On June 16, Export Credit Greece, the organization that responds to the needs of Greek exporters by providing them with export credit insurance and financial and consulting services, signed a memorandum of cooperation with the Egyptian Export Credit Guarantee Co., with the aim of creating the cooperation framework , supporting and encouraging bilateral trade and investment.

-On June 26, an agreement was signed to connect the two countries by extending a branch of a large submarine cable system, currently located in the Mediterranean Sea. The agreement aims to intensify cooperation in the field of telecommunications and IT and to serve the growing traffic of data between Africa, Asia and Europe.

Then Mr. Fragogiannis emphasizes “Greek support for Egypt as the venue for the UN Climate Change Conference 2022 (COP27), next November” while announcing the participation of representatives of the Greek food industry, organized by Enterprise Greece, in the international exhibition entitled “Food Africa Cairo”, which will be held in Cairo from 5 to 7 December 2022.

At the same time, he emphasizes that “in addition to our bilateral cooperation activities, we also look forward to the progress of our tripartite cooperation, with the next tripartite summit, which will take place in Egypt, in the second half of 2022”. He also points out that there are ongoing discussions about planning a visit to Egypt by a business delegation to explore ways to expand and strengthen economic cooperation.

Mr. Fragogiannis also makes special mention at the Gas Forum of the Eastern Mediterranean “an important initiative undertaken by Egypt, which was welcomed by Greece from the start, since it serves the collective effort to create a regional natural gas market in the southeastern Mediterranean”. “It is worth noting” he adds “that the EU has recognized the important role of Eastern Mediterranean countries in diversifying gas routes and suppliers” pointing out that “EMGF provides an excellent example of how participating countries use energy as support for peace and cooperation and not as a cause of conflict in a troubled region. Every country is invited to participate under the condition of full respect for international law.”

In this context, the Deputy Minister of Foreign Affairs underlines: “We fully welcome any cooperation with Egypt, both bilaterally and internationally, and in this regard, we look forward to working closely with Egypt during the upcoming COP27 summit.”

Bilateral trade and investment relations

Referring to bilateral trade in numbers, the Deputy Minister of Foreign Affairs explains that “in 2021 it amounted to 1.7 billion euros, an increase of 49.5% compared to the same period in 2020, adding at the same time that “there is always room and perspective for new economic cooperation opportunities”.

According to the latest available statistics, the value of Greek exports to Egypt followed a downward trend in 2021, mainly due to the decrease in exports of petroleum products and their derivatives, which make up half of Greek exports to Egypt.”

“Greece’s main goal is to diversify our export portfolio and reduce dependence on petroleum products, with an emphasis on increasing the share of the food industry, pharmaceutical products, chemical products and services (construction, tourism, energy and RES and ICT)” notes Mr. Fragogiannis clarifying:

According to the latest data from the Bank of Greece for 2020, direct investments from Greece to Egypt amounted to 81 million euros and mainly concern cement, oil, aluminum, construction materials, food, banking services, sea and air transport, education, IT and paper industry services.

Accordingly, the amount of direct investments from Egypt to Greece is estimated at 24 million euros and mainly concerns real estate.

In 2021, several Greek business and investment groups showed an active interest in the Egyptian market, making site visits and looking for the best ways to stabilize or expand their activities.

As far as the Egyptian side is concerned, there is strong interest in the purchase of real estate (through the Golden Visa program), as well as in the exploitation and management of tourist properties and hotel units. There is also a growing interest in branches of the Greek industry.

Source: AMPE