Egypt is one of the most developed African countries, and it is a great factor on the international trading market. Its economy is a very well centralized one, and it even got better after the reforms that were started by the government after the year 2000. Egypt economy was adjusted after changes in the fiscal, monetary policies, taxation, privatization and new business legislations domains.
Since import-export businesses are a significant part of Egypt’s economy, they tend to be developing from year to year. New imports involve new opportunities for international businesses, and they can bring a significant profit to both importers and exporters. If you are into the international trading, here is what you should know regarding imports when it comes to Egypt!
Most Important Products Imported Into Egypt
When it comes to importing goods into Egypt, there are several aspects to take into consideration. And if you keep your attention on the main points of this process, your chances of succeeding are a lot higher! Egypt has a large population of almost 100 million people which increases the demands for many goods and products.
It is an important aspect to consider when you want to introduce your products into the Egyptian market. The larger the population, the greater chances you have to sell your goods. And a good advantage is that Egypt has both urban and rural areas which creates a variety when it comes to imported goods.
List of Egypt top imports are
- Mineral and Chemical Products: 25 percent of all imports are represented by chemical products, which is a quarter of all the imports made by Egypt. Since mineral and chemical products are not produced enough in Egypt, the demand for these types of goods is still high. As an importer or exporter, this is a great opportunity to consider as mineral and chemical products also sell for good prices and they are easy to transport from one location to another.
- Agricultural Products: The next types of goods imported by Egypt are agriculture products which represent around 24 percent of all the Egyptian imports. The most popular agricultural products are mainly wheat, maize, and meat. Meat is something that is highly consumed in Egypt, and the price for it tends to remain high compared to other foods. Egypt imports commodities as always a good idea for importers and exporters since they will always be in high demand all over the country.
- Electrical Equipment: When it comes to Egypt electrical equipment is in high demand especially in the urban areas of the country. It increased the imports of electrical equipment to almost 15 percent of all imports, and the perspective shows even a further increase of it. Considering that electrical equipment is also Peavey, importing it into Egyptian market can be a real chance for an international trader.
- Base Metals: Base metals imported into Egypt reach almost 13 percent of all the imports each year. Even if finding quality base metals might be a challenge, it is one of the main imports that an international businessperson can make when entering the Egyptian market. Base metals are metals that are not precious but very useful when it comes to building or forging. Base metals tend to be important in a variety of industries which is why they can be very popular in Egypt.
- Rawhides, Wood, Paper-Making Products, Textiles, And Footwear: These types of goods represent around 9.5 of all imports which even if it is not in the top three, it is a great number to work with. Plus, finding quality textiles and other similar goods is rather accessible and doesn’t require stress from the importer or exporter. It can be a smooth type of business for everyone involved but it can also bring significant profits. For instance, paper imports in Egypt reached the value of US$1.16 Billion only in 2017. These imports also include cardboard and articles of pulp and different boards.
- Artificial Resins and Rubber: These types of good represent only around 6 percent of all imports, but they can be a starting point. To import such product is easy and a great opportunity for beginners regarding international trading. If you are a first-time importer, you might want to consider trading artificial resins before jumping to more complex trades that can also come with certain risks.
- Vehicles and Aircraft: Even if vehicles and aircraft only make for 5 percent of all goods imported into Egypt, the price of these products makes all the difference. You can import one or two vehicles or aircraft and make enough income for one season or even the entire year, depending on the type of car that you are bringing into the country.
With so many imports, Egypt also has a multitude of partners to work with when it comes to international trading. And the main exporters that provide the goods so much needed in Egypt are China (imported goods in the value of $10.5 billion yearly), Germany, Italy, Turkey, Saudi Arabia, Kuwait and Lebanon, United States and India.These are the most important Egypt trade partners, but new ones might appear in the future.
The percentage is variable from one country to another and from year to year according to the local demand for different goods in Egypt. But more often than not, these countries remained the constant trading partners of Egypt along the years and even along the decades. Egypt foreign trade is also under continuous development which might bring significant changes shortly.
When it comes to China, this is the biggest provider for Egypt and usually goods imported from this Asian country stay above the $10 billion value mark. Regarding imports, Egypt ranks the 49th country in the world, but the number of imports is expected to grow even more in the following years. And the importing process is connected with the exporting one which has a significant impact on Egypt’s economy for many decades now.
Considering the number of opportunities present on the Egyptian market, more foreign exporters and even investors have their eyes on this African country as their next trading target.
How Egypt’s Exports Support The Country’s Economy
Egypt’s economy is strongly based on the exports of the country to foreign partners being them African or from other continents. Egypt’s economy is the largest 52nd one based on export in the world, and it has plenty of chances to get even higher in the international top. Egypt is exporting in average goods in the value of $22 billion, and those funds are supporting the entire economy of the country.
However, in the past, the exports of Egypt reached even higher values which makes the government more ambitious when it comes to the local production of certain goods and products.In 2017, Egypt had a GDP of $336 billion while its GDP per capita was around $11.1k these numbers are empowering the idea that Egypt has a strong and strategic economy and it is mostly thanks to their exports. These numbers make Egypt an example for other African countries that struggle with different economic problems or levels of poverty.
Certain goods and products are exported on a regular basis by Egypt and bring significant income to the country.
And the best aspect of these goods is that they don’t require significant investment to explore them and even to produce them if that is the case. They are goods that can be easily achieved in Egypt and exploited for the interest of the entire country.
List of Egypt major exports
- Gold: Around 12 percent of all the exports that Egypt makes to foreign countries are represented by gold. This adds a value of $2.65 billion yearly to the Egyptian economy which is significant and also something the government relies on. Not to mention that gold is a metal wanted worldwide so the demand for it is and will always be present.
- Crude petroleum: Crude petroleum represents around 8.1 percent of total Egyptian exports, and the value of these exports reach around $1.81 billion. Extracting this petroleum requires certain local investments, but it is all worth it, in the end, considering the value it adds to the local economy. Not to mention that there are foreign investors that can easily explore this type of exports in both the favor of their businesses and the Egyptian government.
- Refined petroleum: Refined petroleum requires more funds invested in it than the crude petroleum. But even so, the income from exporting this type of petroleum can reach $802 million which means the initial investment is rapidly recovered during the export process.
- Nitrogenous Fertilizers: These types of fertilizers reach an export value of $767 million and represent around 3. 4 of all the Egyptian exports on a yearly basis. Nitrogenous Fertilizers are also called around the world in different ways according to their types and concentration such as ammonium, nitrate, sulphonitrate, sulphate, calcium, cyanamide, urea, mineral, chemical. These fertilizers are a four digit HS92 product.
- Insulated wire: insulated wire might not be one of the most popular exports when it comes to Egypt, but it is an important one regarding the Egyptian economy. Insulated wire represents on average 3.3 percent of all exports made by Egypt on a yearly basis, and it brings around $741 million to the Egyptian economy.
- Other exports: even if not all goods and products made in Egypt are top exports of Egypt, all of them contribute to a better local economy. Cheese, for instance, is exported in the value of $284 million and equals 1.4 percent of all exports.
It might seem little compared to the exports of gold, but it gathers in the category of small exports that together also bring significant funds to support Egyptian economy. Same goes for building stone which brings around $206 million income while it stands for less than 1 percent of all the exports.
Besides, furniture pieces which have a value of $352 million and represent 1.6 percent of all the exports. And there are a multitude of small exports that individually they might not mean much but gathered together they do make a difference for the national economy of Egypt.
It is important to realize that some funds received from such exports are also used to import goods that are in high demand in Egypt. With these being Egypt major imports and exports, many foreign people in business find new opportunities every time they dive into the Egyptian market.
When it comes to the main destinations for Egyptian exported goods, the United Arab Emirates receive goods in the value of $2.83 billion yearly while Saudi Arabia receives goods in the value of $1.75 billion. Other major destinations are Italy which pays around $1.47 billion for Egyptian goods, Turkey which pays $1.44 for the goods and United Kingdom which imports Egyptian goods in the value of $1.05 billion every year. When it comes to both imports and exports, main products of Egypt tend to adjust from year to year, so nothing is set in stone regarding international trading. The import and the export processes are strongly tied together, and there is no way of completing one without the other.
This is why foreign people in business also discovered ways to trade a type of goods for another type. For instance, they might trade gold for a type of food or electrical equipment. Such affairs are achievable when a foreign exporter identifies a local Egyptian importer that they can trust and rely on. It takes a developed business relationship to reach such a level of trading goods, but in the long run, it might be the best type of business when it comes to international trading.
What Do You Need To Import Goods Into Egypt
To become an importer, you need to consider several aspects as well as get familiar with the exporting process. Try to evaluate your chances of success after you gather enough information regarding the paperwork that needs to be done as well as the national norms required to be respected during the import process.
More often than not the paperwork for importing goods will be strongly connected with the paperwork used by your exporter which is why you need to keep good communication with your partner. A specialized lawyer can guide you through this process for certain fees and help you avoid serious consequences and costs that you don’t need to suffer.
You also need to decide on the type of good you want to import. If you are a beginner, you should focus on commodities such as foods or different textiles and clothes. These are not only easier to import but also they sell much better and faster than other goods, so your risks are minimal. Similar to that importing car and different vehicles can bring you a significant amount of money only by one transport, so you don’t even need to focus on the quantity of the goods but mostly on the quality of them.
Another aspect that you need to consider is transportation. As an importer, you need to decide on a shipment method and make sure that your goods are safe during transportation. There are many companies the will gladly help you with a certain type of insurance for different costs. A high level of research will be needed before you make important decisions in the matter, but such an import can significantly impact your level of profit. It might take some time to get used to the importing process, but in the long run, this can take your local business to a whole new level of success.
How Can Waystocap Help Regarding Importing Goods Into Egypt
Waistcoat is a system that supports the entire importing and exporting process, and many foreign importers and exporters can use its guidelines. If you are an importer or even a foreign exporter, Waystocap can answer a lot of questions that you might have while you develop your business. It can also save you a lot of time spent to research the best products to import or find the best and most reliable partners.
One of the biggest challenges when it comes to importing goods into Egypt is to find a quality partner and to avoid certain scams or frauds that can be extremely common. Such unfortunate events can cost you funds that otherwise you wouldn’t spend. Waystocap also guides you through the paperwork that needs to be filled to introduce new goods and products into the Egyptian market.
You can also find ways to ensure your goods to make sure that your clients get the best quality products. Waystocap takes care of both your business and your goods and shows you the shortest path toward successful international trade. Especially for beginners, this system can bring a variety of advantages that would be hard to enjoy otherwise.
Waystocap can also make you a personalized plan according to your needs and financial possibilities to obtain the most out of your import and open new opportunities for future imports. Therefore, you should consider investing in such a strategy rather than taking a long way and suffer several risks that can damage your company.