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For Egypt's exporters, benefits of devaluation slow to emerge

A factory employee works in a thread spinning factory in Cairo, Egypt, July 5, 2018. REUTERS/Mohamed Abd El Ghany High interest rates, a breakdown of trust by foreign buyers during the post-uprising years and a lack of capacity to meet changing foreign demand have all played their role. “It’s the bureaucracy. It’s the market access. It’s the quality control,” Eldesoki said. “Foreign buyers wanted a consistent supply, and Egyptian producers were not able to give it to them,” added Tarek Tawfik, head of the American Chamber of Commerce in Egypt. In 2017, growth in non-oil exports was a relatively modest 9.2 percent, far short of pre-uprising levels, though a jump to 19 percent in the first three months of 2018 - according to central bank figures - points to a change for the better. That figure roughly matches the annual growth rates of cotton textile and garment exports in the seven years that followed Egypt’s previous major devaluation in 2003. That boom lasted until the 2011 uprising.

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