Sunday, April 11, 2021

Al-Ministers: Increasing the value of industrial production to 942.4 billion pounds during 2019-2020

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The government approved unprecedented facilities for investors … and the establishment of industrial complexes and the provision of production requirements

The Media Center of the Council of Ministers issued a report containing infographics highlighting the state’s expansion in supporting the national industry to lead the locomotive of sustainable economic development.

The report dealt with the catalytic capabilities of the performance of the industrial sector and its performance indicators, pointing to an increase in the value of industrial production “at current prices” by 163.8%, as it recorded 942.4 billion pounds in 2019-2020, compared to 847.2 billion pounds in 2018-2019, and 718.6 One billion pounds in 2017-2018, 570.6 billion pounds in 2016-2017, 456.3 billion pounds in 2015-2016, 408.1 billion pounds in 2014-2015, and 357.3 billion pounds in 2013-2014.

The report indicated that the growth rate of the industrial sector reached 6.3% during the year 2019-2020 despite the repercussions of the Corona crisis, and the increase in public investments implemented in the manufacturing sector reached 7 times, as it recorded 49 billion pounds in 2019-2020 compared to 6.1 billion pounds. 2013-2014.

The contribution of the industrial sector to the GDP increased by 17.1% in 2019-2020 compared to 16% in 2013-2014, and the general industrial production index increased by 10.28 points, after it reached 111.43 points in 2019-2020, compared to 101.15 points. 2013-2014.

With regard to the infrastructure of the industrial sector, the report indicated an increase in the number of industrial establishments by 19%, reaching 42 thousand establishments in 2020 compared to 35.3 thousand establishments in 2014, while the number of workers in the industrial sector increased by 15%, reaching 2.3 million Workers in 2020 compared to 2 million workers in 2014.

According to the report, there are 149 industrial zones at the level of the republic, which include 14.9 thousand factories, which have provided about 1.2 million job opportunities. In addition, work is underway to implement 13 other industrial zones at the level of the republic.

The report indicated that 48.6 million square meters of annexed industrial lands were offered during the period from July 2014 to December 2020, in addition to the offering of 14.8 million square meters of industrial lands through the industrial investment map in 13 industrial areas during the year 2020.

The report monitored the state’s efforts to expand the establishment of industrial complexes for small and medium units, pointing out that there are 17 industrial complexes at the level of the republic, containing 5046 industrial units, which provided about 45 thousand job opportunities.

In the same context, the report indicated that there are 6 industrial complexes, which are being finalized within the plan to establish 13 industrial complexes, which include 4,317 attached industrial units, which will provide about 43,000 job opportunities.

The report monitored the state’s efforts to provide an adequate infrastructure for the industrial sector. Regarding roads and axes, 4,800 km were implemented in the first and second phases of a total of 7,000 km planned in the National Roads Project, in addition to developing, maintaining and raising the efficiency of 5,000 km of the current road network at a cost of 15 billion pounds, in addition to The completion of the implementation of 11 axes on the Nile, at a cost of EGP 14 billion.

As for energy, the report indicated that electricity has been available at the level of the Republic since 2018 at 100%, and the percentage of self-sufficiency in natural gas has reached 100% since September 2018.

The report stated that an environmental system has been put in place suitable for industrial activities, pointing to the second and third stages of the Industrial Pollution Control Program, which is one of the largest industrial pollution control projects in the Middle East, noting that the total cost of implementing the two phases so far is about $ 350 million. .

In the same context, the report referred to a project to replace fuel from diesel to natural gas in 243 industrial facilities so far, with a total cost of about $ 45 million.

The report monitored the most prominent reforms to improve the industrial investment climate, namely the issuance of a law to facilitate the procedures for granting industrial licenses and the issuance of its executive regulations, in addition to launching the first integrated map for industrial investment in Egypt at the level of the Republic, as well as providing a package of facilitations on the costs of small and medium enterprises.

The report reviewed the state’s efforts to support and revitalize the industrial sector during the Corona crisis, as it was decided to reduce the price of electricity for the industrial sector for a period of 5 years at a cost of 22 billion pounds, in addition to imposing a unified and reduced price for gas supplied to all industrial activities to reach 4.5 dollars / million thermal units, in addition to Postponing payment of the real estate tax due on factories for a period of 3 months.

The report stated that work has been done to expand the beneficiaries’ base of the Central Bank’s initiative for the industrial private sector, as 100 billion pounds were made available as credit facilities for companies whose business volume or annual revenues ranged from 50 million pounds to one billion pounds, in December 2019.

In addition to the above, it was decided in March 2020 to allow the addition of companies operating in the field of agricultural industrialization to benefit from the initiative, and it was also decided in April 2020 to allow all companies operating in the two sectors whose volume of business or annual revenues exceeded one billion pounds to benefit from the initiative, as the total allocations reached The initiative amounted to 200 billion pounds, after doubling it according to presidential directives.

The report stated that unprecedented facilities were provided to small investors, as credit facilities were continuing to be granted at a reduced rate of return of 5% to companies and small establishments operating in the field of agricultural industrialization, whose business volume or annual revenues ranged from 250 thousand pounds to less than 50 million pounds.

In addition, unprecedented facilities were granted to investors with 1,657 units in 7 new industrial complexes, where the price of the bid book for obtaining the unit was reduced to 500 pounds instead of 2000 pounds, and it may reach 300 pounds in some cases, in addition to agreeing to give 6 months as a period. Permission to pay the rent of the new industrial units after completing the licensing procedures.

The report highlighted a number of models of cities and major industrial projects, including the complex of phosphate and compound fertilizers in Ain Sokhna, which is the largest complex for the manufacture of phosphate and compound fertilizers in the Middle East, with a total implementation cost of 16 billion pounds, and provides about 21.5 thousand direct and indirect job opportunities.

The report also referred to the city of leather in Rubiki, which is the first integrated industrial complex specialized in leather industries with local and foreign investments, and provides about 35 thousand direct and indirect job opportunities, while the total volume of industrial investments in the project reached about 5.6 billion pounds.

In the same context, the report dealt with the talk about Damietta Furniture City, which is the largest industrial and commercial gathering of furniture, and the first of its kind in the Middle East, with a capital of about 5.5 billion pounds, and it provides more than 25 thousand direct and indirect job opportunities.

Regarding the optical fiber factory project in Ain Sokhna, the report stated that it is the largest optical fiber factory in Africa and the Middle East, with investments exceeding one billion pounds, and a total annual production capacity of 4 million km of cables to serve the internal and external markets.

As for the project to produce sugar from beets in western Minya, the report stated that it is the first integrated industrial agricultural project for sugar, and the largest in Africa and the Middle East, with investments amounting to $ 1.5 billion, and the project aims to reach the value of its annual exports to $ 120 million.

According to Fitch, the report touched on the most promising industrial sectors in the coming years, on top of which is the pharmaceutical industry, as Egypt has well-established manufacturing capabilities, and the presence of a large group of highly trained doctors, pharmacists, engineers and technicians.

In this context, the report indicated that annual spending on medicines will increase in the medium and long term, supported by the continuous implementation of the comprehensive health insurance system. Egyptian pharmaceutical exports are expected to grow to reach $ 280.9 million in 2024, and these exports may grow faster depending on the success of the program. Egyptian Export Council for Medical Industries.

With regard to the electronics industry, the consumer market for electronics in Egypt is expected to record faster growth in 2021, with this trend enabled by expanding the scope of the Corona vaccine, which will lead to a recovery in consumer confidence.

The report noted that Egypt is one of the largest markets in the Middle East and Africa in the field of electronics due to its integration into the global trade network, as well as being a center of production to serve the local market and the region. Mid-range thanks to the expansion of the middle class.

Regarding the food and beverage industry, the report pointed out that the retail food industry is rapidly expanding in Egypt, and is likely to be one of the largest industries in the region in terms of value. It also made clear that the gradual return to economic and political stability will attract greater levels of investment in the food and beverage industry in the region. Egypt.

The report noted that Egypt represents one of the largest consumer bases in the region, with potential for long-term growth for food and beverage companies.

Continuing with the above, it is expected that the auto sector will continue to grow in Egypt thanks to improved consumer and corporate morale driven by the global economic recovery during 2021, especially since Egypt has many potentials for the auto industry thanks to its possession of one of the few production bases in the region, and the presence of global brands produced locally. Its geographical location makes it an export center, which made it maintain its position as the third most attractive country in the Middle East and North Africa region for car production.

As for the petrochemical industry in Egypt, the report stated that the abundant natural gas reserves will give the petrochemical industries in Egypt a high competitive advantage. The petrochemical sector is expected to grow significantly in Egypt, in addition to Egypt enjoying a good position to export its petrochemical industry to Europe.

The Egyptian government allows foreign companies to invest in the phosphate fertilizer sector, given that Egypt has a well-established fertilizer sector.

As for the medical device industry, the report indicated that this industry will enjoy a comparative advantage thanks to the ongoing health infrastructure projects in Egypt, in addition to the improvement of the economic environment that will support the growth of the Egyptian medical devices market that is most attractive in the Middle East and North Africa.

The report noted that Egypt ranks second in the Middle East and North Africa region in the medical device industry efficiency index.

The article “The Ministers”: The increase in the value of industrial production to 942.4 billion pounds during 2019-2020 was written in Al-Borsa newspaper.

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