Collect data from industry, petroleum and finance to serve strategic axes
Committee Chairman: Egypt will enter the list of the top 20 within 5 years
The Industry Committee in the House of Representatives is preparing a new strategy to support the industrial sector during the coming period. It will include, reviewing all economic decisions that would hinder the work of industry and investment, as well as work to increase the export capacity to achieve the aspirations of President Abdel Fattah El-Sisi and bring it to 100 billion dollars over the next four years.
Engineer Moataz Mahmoud said Chairman of the Industry CommitteeThe committee assigned its members to develop a small plan of action for each industrial sector, provided that those plans are grouped into a large strategy that the committee will work on during the coming period.
He explained that the committee focused on this strategy contributing to placing Egypt among the top 20 economies in the world during the next five-year plan, because work will be done through 3 main axes, which are solving the problems facing the industrial sector, contributing to increasing exports, and attracting more new investments.
Mahmoud added that the work plan currently being prepared by the head of the committee focuses on developing the Egyptian industry and increasing exports as a strategic goal, and under it is a plan to develop industries based on Egyptian raw materials such as the exploitation of mines and quarries, and linking them to the strategic goal of the state.
He revealed that reaching “$ 100 billion in exports” is not an easy matter .. Therefore, the Council will work in cooperation with the government to prepare the climate to reach this rate, given that ensuring that this number is achieved will protect the economy from the risks of instability in other sectors that the state depends on to introduce the currency. Difficult as tourism.
The head of the Industry Committee in the House of Representatives said that Egypt achieved exports in 2019 worth 28.5 billion dollars compared to about 28 billion dollars in 2018, an increase of 1.5%, pointing out that the Corona crisis had a negative impact on all sectors and therefore exports are expected to decrease significantly. Big during 2020.
But enabling the industry to return to work at full production capacity will ensure the achievement of exports worth $ 40 billion by the end of the next two years.
Mahmoud explained that the committee will meet with export councils and exporters during the coming period to urge them to increase their role in promoting goods and cooperation with representatives of commercial representation offices in African and European countries, as well as the state’s contribution to supporting exporters by providing a complete and ready transport fleet to transport goods to countries that they cannot to get it.
Mahmoud considered that improving the quality of the Egyptian product is one of the most important pillars of export to foreign countries, and working to improve quality will enhance the competitiveness of the product .. Therefore, the committee will propose to grant companies whose products are accepted in foreign markets, incentives in the form of tax exemptions or export support.
He pointed out that the parliament, in cooperation with the Ministry of Trade and Industry, seeks to localize the local industry by activating the law favoring local products, and urging the government to contract with companies that manufacture 100% local product.
He added that despite the issuance of the Local Product Law in 2015, there was no specific mechanism to compel government agencies to buy it in their contracts … and imported goods were relied upon in their projects.
Mahmoud said that for the first time, the industrial product for technology was added as part of the amendments to the law approved by Parliament after Egyptian technology and software companies suffered in the past when they submitted to government tenders and contracts before foreign companies.
With regard to faltering factories, he pointed out that the first strand for the development of the industry is to study the conditions of stalled factories to contribute to solving them, whether technically or by amending some laws that impede their mechanism of work, in addition to organizing listening committees for all industrial chambers, including the room of building materials, ready-made clothes and metal industries. And chemists to work to solve all problems hindering their work so that they can develop.
He explained that the committee’s work would not be limited to private sector factories. Rather, the committee actually addressed all the holding companies affiliated with the business sector by sending all the budgets of their companies to try to find solutions for those defaulting, so that we would not be surprised by the announcement of the liquidation of factories or other companies, as happened with iron and steel.
On the file of the iron and steel factory, the head of the Industry Committee in Parliament explained that most of the problems facing the liquidated factory were the high costs of transporting the raw material and some other technical problems, most of them technological.
He added that the committee is preparing a number of proposals to present to the Minister of Business Sector during the upcoming meeting, among them the establishment of a new iron and steel factory that is close to the source of the raw material to reduce transportation costs and some other technical obstacles. He mentioned that one of the technical problems facing the work of the factory was In the low oxide percentage in the stone from which the billet is made, from 52 to 45%, due to its dependence on the oases area to obtain the ore, and thus it requires double energy .. Therefore, working near the raw material will work to overcome these obstacles.
He pointed out that the most prominent proposals that the committee will present to the minister is to exploit the land of the factory in Helwan to establish another factory belonging to the business sector or in partnership with the private sector, so that more than one billion pounds that were spent on infrastructure works for that land is not wasted.
In July 2020, the Egyptian Iron and Steel Company signed an agreement with the Ukrainian Fash Mash Company, to study the possibility of raising the iron ore concentration in the oases and establishing two pellet factories at a cost of approximately $ 35 million and a production capacity of 1.3 million tons per year of relatively high-concentration ore.
Last October, the company’s extraordinary general assembly agreed to separate the mining activity in an independent company, and after the division was approved, the company’s extraordinary general assembly decided on January 11, 2021, to liquidate the company’s factory activity in Al-Tebeen, Helwan.
The company owns two plots of land, the first with an area of 270 acres, in El-Tebin, Helwan, and another plot of about 325 acres, inside the company’s walls in Helwan.
The company intends to sell that space to pay part of its debt, which reached 8.5 billion pounds in June 2020.
The article, Eng. Moataz Mahmoud: “The Industry of Representatives” launches a new strategy to support the sector.