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Some Egypt businesses thrive in crush of economic downturn

Egypt's smaller companies have been trying to push aside the hosni mubarak since the uprising in 2011. But in a few money economy, the enterprise is doing.
In the face of turbulent background, access to credit and currency has dried up. Government officials have decided to stop taking safety all but disappeared from the streets.
Factories and plants have been hit funding interruption of diesel and petrol and often power outages, the government running low, it needs to be imported petroleum products.
The angry workers often shut down factories and ports.
Gross domestic product (GDP) growth at the end of March 9 months at an annualized rate of only 2.3%, well below the 6% rate of growth, think it is necessary to absorb new entrants to the Labour.
But for many in the food production, supply and other business, even if the economy could slow people require their services.
"Last year our sales terms and in value terms in Egypt, we have the best year ever, this year is better," said tower hill Gargour Lecico Egypt sanitary ware and ceramic tile manufacturers, managing director.
"We sell higher price is what we have done any for a year, even the best years of hosni mubarak overall gross domestic product (GDP) growth is in the midst of the rush hour."
Lecico main contractor suffered from a lack of business, has provided the toilet and small ceramic tile and personal builders are taking advantage of the collapse of the government rules of the partition.
All over the country, the skyline has become illegal add floor brick red people on limited land and agriculture and other concrete and sintered brick buildings is established.
Construction boom spurred the uplift in Egypt marriage age of young people looking for a place to live.
"Another story is that due to the uncertainty of the economy and the strength of the Egyptian pound, people are in real estate for a safe haven investment," said Gargour.
Lecico net profit growth of 28%, for 1.63 billion Egyptian pounds over the same period of last year, and revenue climbed 15% in the first quarter of 2013, 331900000 pounds.
Feed the fish
Aleko, aquatic Egypt, extruded pellet feed fish farms, manufacturers, chief executive of hussein said mansour, business environment is becoming unbearable.
"Egypt the currency issue, making it harder to import," said mansour. "Diesel shortage hurt production, rising wages and the safety of road has become a problem."
A steady rise in government borrowing budget deficit financing, private borrowing by extrusion.
Bank loans to give less, more strict guarantee, and set up multiple conditions. Mansour said, they are now routinely charge 18% interest on loans, plus administrative costs and expenses.
Lack of access to credit, means that companies must be prepaid cash, use money, is a painful company, its products have a due date.
Collect user need a week's time, now need two months time, this is a very big effect, and small companies, "he said."
However, this did not prevent aleko, aquatic animals, Egypt partnership in Denmark, during the economic recession to build a new factory in 60 city west of Cairo.
"The contractor a lot of pain, because the market is not good, many people have to suspend operations," said mansour.
Egypt is the world's leading tilapia aquaculture, mainly in the Nile delta, fish usually raised water irrigation in the paddy fields. Aleko, Aqua 40 permanent staff and 40 temporary staff use imported soybean, corn, fish meal and other raw materials, production country expanded 20% of fish feed.
Mansour said that the plant will be increased by two times, make it's largest producer of expanded feed rapidly growing market in Egypt, the capacity of the company.
The red tape
Mechanical and electrical integration, western industrial scale, the conveyor belt and other products manufacturers, factory bathhouse Elabd, also said that, chief executive of credit has been closely watched.
Before the 2011 uprising, smaller companies rarely hire purchase goods, required to provide guarantee, but now it is the standard. Previously, Banks usually require a down payment of 30% to 30%. Now, they are asking 100%, Elabd said.
The influence is huge. Sales have fallen, costs rise, the basics, you buy and sell the financing has been a problem, "he said."
It has been cut to Elabd sales, but he has found a way to replace the domestic market.
"If it weren't for us in Egypt outside of the contract, it is very bad, said:" Elabd, he says, in particular, he refused to market in Libya.
Foreign sales of foreign currency problem help Elabd skirt has hurt a lot of other companies to import.
Government tightening of foreign currency, the pound in December after the operation, to give priority is defined as the essential commodities, such as basic food importers.
But even if the import of these goods are eligible for official currency exchange rate on the black market to buy some of their own currency, aquatic animals, column, mansour said.
Even if Banks are demanding a new file by then.
"The company must provide the customs documents to the bank companies are allowed to withdraw up to $30000 a day, so it can take two weeks or longer to complete a considerable import purchasing," said mansour.
"We have to convince foreign investors to cooperate with us, we import or funding from them, or allow us to installment payment problem - the things they all demand here, they will export the payment in advance," said Elabd.



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