LABOUR-EGYPT: Skilled Management Key to Export Development

By Cam McGrath Reprint | | Print |

Cam McGrath

CAIRO, Jun 11 2002 (IPS) - The mediocre performance of Egyptian exports in world markets has forced the government to rethink its foreign trade strategies and concentrate on upgrading the skills of its export managers.

Ministry of Foreign Trade statistics indicate that the value of Egyptian exports reached 7.0 billion United States dollars in 2001, well short of the modest 10 billion U.S. dollar target set five years ago.

Economists generally agree on the reasons behind this failure pointing to stifling bureaucracy, excessive customs tariffs and lack of technological innovation. More importantly, they say, Egypt lacks a labour force with the managerial skills to overcome these obstacles, which seem unlikely to disappear anytime soon.

In a recent study on export performance economist, Talaat Abdel Malek, argues that a new breed of export managers is needed to create the appropriate ‘export culture’ for today’s global market.

“The export culture cannot exist unless (prevailing) attitudes and practices… are replaced by more forward-looking, open and cooperative approaches that put international competitiveness of the enterprise at centre stage,” he writes.

A new government-supported facility, the first of its kind in Egypt, aims at instilling this competitiveness. Inaugurated earlier this year, the Foreign Trade Training Centre (FTTC) is dedicated to teaching exporters the marketing and managerial skills they need to compete in the global market.

“The centre is supplying trained personnel in the field of export marketing and upgrading the skills of export directors in order to enhance the competitiveness of Egyptian exports,” says FTTC Executive Director Dr. Said Talaat Harb.

The specialised facility is a partnership between the Ministry of Foreign Trade and the Japanese government. Representatives of 11 export-related bodies occupy its board.

The Japanese International Cooperation Agency (JICA) and Japan External Trade Organisation (JETO) provide technical assistance in the form of training expertise, equipment and scholarships, while USAID has provided a 215,000 U.S. dollar grant to finance the implementation of the training programmes during the initial stage.

Twelve experts supply technical assistance to the project and experienced trainers are drawn from local and foreign universities, corporations and export bodies. The training courses are free, but nominal fees will eventually be levied to help cover operating costs and salaries.

“Programmes are offered throughout the year and are based on the philosophy of giving trainees an integrated approach to export marketing,” says Harb.

The programmes include a two-week primer on export culture and a six-week course for commercial representatives. The main programme is a 12-week course on advanced marketing techniques for export managers and marketing directors.

The course familiarises trainees with all aspects of the export system, including World Trade Organisation (WTO) rules, marketing strategies, export credit insurance, packaging, negotiation techniques and e-commerce.

“The emphasis here is the export system as a whole,” explains Dr. Mohammed Zakareya, the centre’s Director of Training and Operations. “One cannot concentrate on developing products without taking into account the necessity of developing services. Our trainees learn how to do both simultaneously.”

Backing up the new training centre is a handful of existing facilities, such as the state-run Egyptian Export Promotion Centre (EEPC), which offers free marketing information and statistics to exporters, and the European Union’s Industrial Modernisation Programme (IMP), which includes sector-specific training programmes.

Exporters can also find complementary training at the Centre for Business Support (CBS), a USAID-sponsored non-profit organisation that offers assistance to businesses in the information technology, tourism and food processing sectors.

While FTTC training focuses on macroeconomics, CBS works individually with each client at the micro level in all departments.

“Our training is not an off-the-shelf or generic package,” says Dr. Tarek Nabhan, Director of Firm Level Assistance. “We provide company-specific tailor-made training at the micro, or firm, level.”

Taken together, these export training facilities promise a significant improvement in the skills of Egyptian export managers. They are part of a new integrative approach that recognises the importance of marketing and management skills to the export process.

“It is not enough to have the right product,” says textile factory manager Ismail Hussein. “A company must have skilled management and a sound marketing plan to succeed in exporting.”