I have always refrained from discussing politics and economic policy, but it is becoming increasingly difficult to ignore their impact, positively and negatively, on entrepreneurs and business at large. Finally, there seems to be light at the end of the tunnel.
Over the last few weeks the value of Egyptian pound has dropped nearly by 80% against the US dollar. The fuel prices have increased by 40% on average … Inflation is soaring in a country that has been struggling for almost five years to find political stability and social justice. What has been hoped for to be an Arab spring turned into a long Arab fall, and the upcoming winter doesn’t look any shorter.
It may be true that high-end supermarket chains are running out of luxurious imported goods, leaving wealthy Egyptian with nothing but local alternatives. For the first time in many decades, Egyptian products are being pushed to the shiniest spots on the shelves.
In the first time in the Egyptian modern history, as demand for imported goods fall Egypt has a real opportunity to reach balance of payment. This is unlikely to be achieved unless the Egypt’s wealthiest reduced their imports, this include billionaires, corporate executives and army generals.
The competitive advantage in creation cannot be missed. In today’s prices, Egyptian white and blue collars are more competitive than their peers in China and India. This is an opportunity that should not be missed by Egyptian entrepreneurs.
High unemployment and withdrawal of foreign investment in the last few years limited multinational job opportunities and demand for top talents in the Egyptian market. In the past, it was very difficult for Egyptian entrepreneurs to attract talented engineers, who preferred safer job opportunities at multinational firms. Today, top talents are more accessible than ever before.
Several executives told me that their businesses have made strong comebacks in November 2016, with contracts being signed and job openings being filled.
The game rules are being changed, a phenomenon that doesn’t happen very often, but it is just happening today. There is a real opportunity for the quick and nimble, and for the contrarian who believes that she can have a positive impact.