THE GERMAN-ARAB CHAMBER OF COMMERCE CELEBRATES 50 YEARS OF TRADE AND COOPERATION WITH EGYPT.
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With the advancement of technology today, it is becoming easier for people to work from home. This arrangement, when possible, is especially convenient for women. The German-Arab Chamber of Industry and Commerce (GACIC), together with Siemens and the German Development Cooperation (GTZ), is establishing a new information technology training institution to train women and handicapped people on computers and thus enable them to work out of their home, as GACIC's executive director Peter Goepfrich explains.
The new institute is only one of several GACIC projects. Established in 1951 as one of over 70 German chambers of commerce worldwide under the auspices of the Association of German Chambers of Industry and Commerce, GACIC (which was certified according to ISO 9001 for total quality management standards and celebrates its 50th anniversary this month) is the oldest bilateral chamber in Egypt. Since its inception, the chamber has played an important role in promoting trade between Egypt and Germany, opening new markets for industries and endorsing business relations between the two countries.
Today GACIC has 2,000 Egyptian and German members, and provides information about business in Germany and Egypt through its events, special publications, road shows and market studies. Through its affiliates, the chamber also offers specialized services such as training in different fields including management, marketing and finance, as well as consultancy in legal matters, IT and industrial management.
Throughout its years in Egypt, it has been necessary for the chamber to cope and adapt to the changes taking place in the country. The chamber's functions changed in line with Egypt's economic conditions, explains one of the oldest and closest associates with GACIC, Azer Farag, chairman of El Karnak Agency Co. Farag joined the chamber in 1974 as deputy executive director and has been a board member since 1991. Under Nasser, for example, the effect of the domination of the economy by the public sector was reflected in the composition of members and board members, most of whom were key persons in public sector banks and industries, he explains. Still, the chamber was able to introduce activities which did not exist at the time, like training, conferences and matchmaking activities.
The most difficult challenge the chamber had to face, according to Goepfrich, was in 1965 when political relations between Germany and Egypt were interrupted due to Egypt's acknowledgement of East Germany as a state. "Despite that, the chamber continued its good relations with the Egyptian government," he states. During that time, GACIC assumed the role of an embassy by staying in contact with businesses, facilitating between the two governments and coordinating German development aid. In the 1970s, diplomatic relations were resumed and economic activities of the chamber multiplied, as well as membership. Under Sadat the picture brightened as the private sector assumed a more active role, especially starting in 1974, when it was allowed to represent foreign companies in Egypt-- something that had previously been confined to the public sector.
The establishment of other foreign and bilateral chambers of commerce has also had its effects on the chamber. "We have to confess that the presence of new foreign chambers of commerce in Egypt like the American Chamber and others have certainly pushed the chamber to create new activities which were not common before like the specialized committees and the monthly luncheon," states Farag.
Since 1995, the chamber has been expanding its mandate beyond Egypt to cover other Arab countries through the establishment of liaison offices in Jordan, Lebanon, Syria and Palestine. GACIC is also currently studying requests to open offices in Sudan and Libya next year. At the same time, it is working toward promoting business in Iraq through increasing exports of its German and Egyptian members, especially products of German-Egyptian joint ventures. "All those regional activities aim not only to increase German exports, but are considered a major priority to increase intra-Arab cooperation and thus contribute to the development of an Arab economic area which will be a valuable player in the context of a global economy, especially in the context of Euro-Arab cooperation," says Goepfrich.
An important achievement of the chamber, which Farag believes is often overlooked or underestimated, is German aid to Egypt. Unlike most other foreign aids, it is non-binding, which means it does not oblige the recipient country to buy only from the donor country. The Mubarak-Kohl Initiative (MKI) is one of the most successful German aid projects in Egypt, according to Goepfrich. "So far it has succeeded, together with the Ministry of Education, in training thousands of Egyptian young people to become skilled workers and technicians in various professions," he says. MKI follows the German dual educational system, which involves simultaneous theoretical and practical learning. "The output of the program is a well-qualified worker, trained on the latest machines and technologies used by a certain industry," says Farag, adding that MKI could help solve the unemployment problem of new graduates.
The chamber is currently involved in a number of important projects, including the German Industry House, through which GACIC is going to offer business services such as conferences, meetings and banking services, to name only a few. At the same time, the chamber is establishing an export promotion desk at its Berlin office to help Arab exporters by connecting them to German buyers and markets, in addition to the office's continuing matchmaking events and consultancy services.
Training constitutes an integral part of GACIC's activities. Through its affiliate associations, the chamber provides vocational and management training programs. "By increasing the capacities of [people], their efficiency increases and more job opportunities would be available," believes Goepfrich. Through training, the chamber is also helping its members adapt to changes in technology and working conditions by ensuring sufficient supply of skilled labor. The foreign language secretaries program, for example, jointly with the German Chamber of Industry and Commerce in Dusseldorf and in conjunction with the German School in Alexandria, carries out the examination and certification of qualified German-speaking secretaries. In addition, Farag explains that through seminars and courses, the chamber offers legal training to lawyers and judges on international arbitration. It also provides training on special topics such as letters of credit, letters of guarantee and international marketing, to facilitate foreign trade transactions.
Germany is known as the world's leading trade fair center, hosting around 140 international events every year with more than 154,000 exhibitors and over 10 million visitors. The fairs represent a good opportunity to collect new market information, be informed about state-of-the-art technology, develop work strategies and establish business contacts. Through its customer care center, GACIC offers information and services for exhibitors and visitors, including providing entrance tickets, brochures and schedule of conferences to visitors, as well as renting booths, assisting in advertising and public relations, studying cost of participating in the fair in addition to providing information about the German market to the exhibitors.
The main difficulties the chamber faces are mainly due to bureaucracy in Egypt, according to Goepfrich. However, a good relationship with government officials makes it easier and, "Problems are translated into challenges," as he explains. "The chamber never faced a real problem in Egypt because it has never interfered in local Egyptian politics and never tried to act as a pressure group, contrary to other businessmen associations and other chambers," says Farag, explaining that GACIC has always respected the laws and regulations of the hosting country.
One challenge all bilateral chambers of commerce are facing and will increasingly face in the future, according to Farag, are the effects of modern information sources, such as the Internet. One of the major functions of such chambers includes providing members with information about producers, exporters and importers of the two countries. "On the Internet, you can easily and quickly get such information today," says Farag, explaining that for chambers of commerce to survive, they have to always look for new functions, especially in terms of training. "Otherwise, they cannot stand the challenge from the easy flow of information through the Internet and other routes," he explains. Goepfrich assures the chamber is continuously developing new services "that meet the challenges of the third millennium," and that it adapts and positively contributes to the changing environments.
Preparations for GACIC's 50th anniversary are under way and include the German-Arab Economic Conference, which will take place in Cairo from October 21 - 22. The conference aims at discussing the direction of German-Arab trade and investment through assessing business potentials, establishing new partnerships, and covering in-depth business themes and sectors of importance to Germany and the Arab world, explains Goepfrich. Participants will include German and Arab ministers and politicians in addition to chairmen of various leading corporations, banks and financial institutions. The conference is designed to be an outset of a similar, annual conference to be held in a different Arab country ever year.
On the occasion of the anniversary, a recreational trip will also be organized by Friends of the Railways of Egypt and the Arab World, an affiliate non governmental organization of the chamber. The trip will begin at Safaga on the Red Sea, going through the white granite quarries of the Roman emperor Claudius, to Luxor, Dendera and Abydos, to the Persian and Ptolematic temples and early Christian chapels in the oases of El-Kharga. In addition, another trip has been organized by the chamber to Sixth of October City to visit a number of the German-Egyptian joint ventures and show participants how these businesses were established and developed over the years.
In the future, Goepfrich expects more integration with other chambers of commerce such as the Egyptian Chamber of Commerce, as well as with other institutions like the Federation of Egyptian Industries. "In addition," he states, "we plan to become even more involved in the activities of the European Union, up to the point where in the midterm future along with the political developments in the EU, the German Chamber of Commerce might evolve from a bilateral to a European-Arab Chamber of Industry and Commerce."
