Alexandria, 26/09/2011 (Agence Europe) - The meeting of over 300 businesses, investment promotion agencies, business support bodies and chambers of commerce from all the countries of the Mediterranean rim in Alexandria, Egypt, from 20 to 22 September, provided the opportunity to take stock of cooperation possibilities in the Euro-Mediterranean area. The meeting was organised by MedAlliance, of which the network Invest-in-Med and its members, Eurochambres, ASCAME - the network of Mediterranean chambers of commerce - and BusinessMed, the network of employers' organisations, are part.
Prospects are good as the countries of the southern rim have “growth rates far higher than those of Western countries and are now growth markets for investors forever in quest of new openings”, according to the organisers. Invest-in-Med said that 826 FDI (foreign direct investment) projects were announced in 2010, an increase of 52% on the 542 in 2009. Progress is less marked in terms of flows: €33.2 billion, compared with €28.4 billion in 2009 - a 17% increase, according to the same source. These “good results” were compromised at the start of the year and the political situation since the start of the “revolutions” has brought a relative “wait-and-see” policy. There is not just political danger, several speakers made clear. Obstacles to investment and to the rolling out of the huge potential of trade remain great.
After two days of debate and exchange of analyses and experience, the organisations which form MedAlliance adopted an action plan to ensure sustainable recovery of business activity, which has been somewhat depressed since the recent upheavals. Data for the last few years show sustained growth which has dipped somewhat, however, since the “revolutions” of the end of 2010 and through the course of 2011 (see EUROPE 10456).
Potential was still generally felt to be strong. To fully develop this potential as soon as the countries concerned return to normal, the networks affiliated to MedAlliance agreed to pool their efforts and adopted six areas for action, according to their joint statement. Firstly, action will focus on those regions which are somewhat lagging behind as the development model of Europe's Mediterranean partner countries would appear to be under challenge: the benefits of economic opening barely find their way to the majority of the population and often carry with them unwanted effects (heavy concentration of FDI in certain areas, local added value not high enough, sometimes negative effect on the environment or culture, eviction of local businesses to make way for foreign operators, etc). Action will also seek to “position the Mediterranean on key sectors” (the green economy, agri-food, logistics and distribution, ICT, cars and tourism). The aim is also to highlight complementarity “through regional clusters” and to support the emergence of “Mediterranean tenders”, stronger international redeployment and a “platform for growth” will be set up to support the creation of funding instruments for the start-up phases. Binationals - from Europe and the southern Mediterranean countries - will be asked to invest their savings in projects. A “network of SME facilitators” will be formed from the members of the MedAlliance network. It was decided to set up a “resource centres for investment, trade and innovation in the Mediterranean” to offer reliable and exhaustive “independent advice” on EuroMed markets and to capitalise on the services developed by Invest-in-Med, involving other data providers in the steering phase (OECD, World Bank, EU, etc). The great unknown is the scale of European financial support over the coming years. (FB/transl.rt)