EXPORT MARKETS

Trade dispute slows the flow of FMCG exports from Egypt to Libya

By our African Marketing Confederation News Team | 2024

Improved stability and economic growth are enhancing Libya’s potential as an export market. Egypt, in particular, sees the opportunity.

Libya, an increasingly viable export market for FMCG products as it experiences a period of improved political stability and economic growth, is embroiled in a spat with Egypt that is preventing products from that country reaching Libyan consumers.

Egypt’s proposed new logistics area at the Al-Salloum land border. Photo: Presidency of Egypt

Consignments of soft drinks and yoghurts are among the products that have refused entry by Libyan authorities at the Al-Salloum land border crossing with Egypt.

Several thousand cartons of Schweppes lemon and mint soft drink were rejected by the Libyans last week, on grounds that most had passed their expiry date.

A thousand cartons of Almarai strawberry yogurt suffered a similar fate on grounds that they contained a prohibited colour agent known as E120. The agent is legal in many countries, including EU states.

According to some commentators, the real reason is a tit-for-tat response to Egypt’s decision to raise entry fees for Libyans entering the country. Citizens of both countries regularly cross the borders because the have family and tribal ties on both sides.

“We can read the new hardline approach by Libyan authorities as an attempt to send a clear message to Egypt’s government about its feelings on the new border fees,” comments Trendtype, the London-based emerging markets consultancy.

“Libya is an important expansion target for Egyptian manufacturers, keen to develop a valuable export market for what is currently overcapacity in the FMCG manufacturing sector.”

Consignments of soft drinks and yoghurts are among the products that have refused entry by Libyan authorities at the Al-Salloum land border crossing with Egypt.

 

Several thousand cartons of Schweppes lemon and mint soft drink were rejected by the Libyans last week, on grounds that most had passed their expiry date.

 

A thousand cartons of Almarai strawberry yogurt suffered a similar fate on grounds that they contained a prohibited colour agent known as E120. The agent is legal in many countries, including EU states.

 

According to some commentators, the real reason is a tit-for-tat response to Egypt’s decision to raise entry fees for Libyans entering the country. Citizens of both countries regularly cross the borders because the have family and tribal ties on both sides.

 

“We can read the new hardline approach by Libyan authorities as an attempt to send a clear message to Egypt’s government about its feelings on the new border fees,” comments Trendtype, the London-based emerging markets consultancy.

 

“Libya is an important expansion target for Egyptian manufacturers, keen to develop a valuable export market for what is currently overcapacity in the FMCG manufacturing sector.”

 

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.