Egypt Food and Drink Report Q3 2014

Egypt Food and Drink Report Q3 2014

Published: August 2014
Publisher: BMI Research
Product ref: 219701
Pages: 132
Format: PDF
Delivery: Immediate download

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Despite the relative near-term weakness of its food and drink market on account of the wider political and
economic situation, Egypt's core demographics continue to offer encouraging prospects for the world's
major fast-moving consumer goods companies. Egypt is also arguably the cultural hub of the Arab world
and doubles as an excellent gateway to the wider North African and Sub-Saharan African regions. We
believe that no other country in the Arab world can match Egypt's long-term potential, which is why many
of the world's largest consumer companies will very likely be increasing, rather than cutting back, their
investment in the country.

Our country risk team holds a moderately bullish view on the Egyptian economy and its consumer, mainly
predicated on the expectation for continued improvements in political stability as well as the impact of low
base effects. Our baseline scenario sees the economy expanding 2.3% in FY2014 and 3.1% in FY2015
(fiscal year running from July-June), up from 1.9% in FY2013.
Though we hold such a view, we stress that heightened political tensions could quickly erode any gains seen
in economic growth. The resignation of former Prime Minister Hazem el-Beblawi's interim government on
February 24 highlights the ongoing challenges which face the country.

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By sector: General drinks

By market: Egypt (in Africa)

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