Cluster Development UNIDO experience in Egypt

20 December 2017

Giovanna Ceglie

UNIDO Representative

and Director of the Regional Office in Egypt

g.ceglie@unido.org

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Performing Cluster

Source: UNIDO (2013)

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Clusters and Value Chains

• Main approach

• Multiple objectives: prosperity, environment, inclusion

• Multiple levels: companies (different sizes), institutions, policies

Main sectors covered:

- Agri-business

- Waste management

- Creative industries

- Furniture

- Renewable energies

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Pesticide application technology

Pesticide Applicator

Value addition

Business linkages

Marketing

Palm Date Cluster Development • 200,000 palm trees in Edwa / 2000 producers

• 50% infestation with red palm weevil

• Locally consumed and rarely sold

• EGY 1st producer but only 3% of World Market Share

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Increase in value (2 EGP/kg to 10

EGP/kg)

2 trading companies

3 million EGP turnover per

year

10,000 palm trees treated of palm weevil

60 employment opportunities

(mainly women)

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Silage and Feed Production

Raising and Breeding Skills

Value Addition and Processing

Ultrasound and Artificial Insemination

Compost and Biogas Production

Animal Production Cluster• 5000 producers in Edwa

• Low productivity

• Inefficient breeds

• Lack of services

77

Increase in milk productivity

83.1%

Increase in meat productivity:

132.7%

14% decrease in production cost

35 veterinarians and veterinary

paramedics capacitated in

addition

20 Biogas units provide 50 families

with gas every month

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Promoting local value addition in the Agribusiness sector:Sun-dried tomatoes in Luxor

Awareness raising on possible value addition for

tomato growers

Capacity building for 12 farmers’ cooperatives

Business linkages with 12 buyers

Women empowerment

(80% of new created jobs)

Egypt is the 5th tomato producer in the

world

Less than 3% is processed

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Promoting local value addition in the Agribusiness sector:Sun-dried tomatoes in Luxor

30% income increase

9 dryers established with

local cooperatives

100 % value increased

181 new jobs created (80%

women)

New long tomato varieties

introduced

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Promoting local value addition in the Agribusiness sector:Artichokes in Nubareya

Training on better cultivation practices (gibrillic acid)

Capacity building

Business linkages & contract farming

Common facility

Quality of production and preparation

declining

Opportunities to anticipate production and

pre-process locally, avoiding traders

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Promoting local value addition in the Agribusiness sector:Artichokes in Noubareya / Bangar el Sokkar

50% increase in productivity

2 preparation units established with

local cooperatives

140 new job opportunities (40%

women)

5 supply contracts signed over 2 years

27% increase in income

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Reviving the Alabaster Cluster in Luxor:

Improve market access of alabaster products:

• Enhanced marketability through product design and

development in line with national and international trends

• Fostered linkages among designers, artisans, and traders

Train students and graduates as cluster agents on:

• Design

• Prototyping with Luxor artisans

• Marketing

Quarries Designers

Exibits

Traders

End users

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Sugar Processing (sugar cane factories)

Refinery factories (in Cairo)

Regional cement

factories

Bagasse

Alt-Fuel Manufacturers

Advanced irrigation system components

Agriculture machinery

Solar powered pest control & light pest control

Biocontrol agent from plant extract

Traps for pheromones pest control

Straw

Waste Traders

FoodInd. Regional paper and

wood factories StarchInd.

Cellulose manufacturers

Glucose manufacturers

Craft paper makers

Sugar Cane Farmers

LEGEND

Existing ActivitiesBusiness

Opportunities

Sugar Cane Production & Sugar Industries “Potential Cluster in Luxor”

Pharma Ind.

Animal breeders Sugarcane

juice shopsBlack honey

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A few tips

• Learn by doing and do by extensive consulting

• Local stakeholders lead the process but external expertise is key for innovation and value addition

• Local, consistent presence is a must: cluster agents

•Market is the goal but choices are needed: need for a priorization framework

•Cluster policies are integral part of other private sector policies

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Thank you!

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Under-performing Cluster

Source: UNIDO (2013)