The government's agenda is "ambitious" and ready to advance development

The industrial sector has acquired a significant share of the government's plan and work program for the next four years and has defined a key title for the next phase of the strategy which aims to improve the business and economic environment. to stimulate investment in the sector. The government has increased the rate of industrial recovery by 6.3% during the fiscal year 2018-2019 to reach 10.7% during the year 2021-2022, thanks to the implementation of A number of policies including the simplification of industrial licensing procedures and General Authority for Development and the creation of 15 new agencies in the coming years, and 28 million square meters of new industrial land for investors.

The plan also includes the construction of 13 industrial complexes with a total of 4,436 units for an investment cost of 5.4 billion pounds. 130,000 indirect jobs, in addition to continuing to work to the establishment of industrial poles aimed at deepening the industry as the completion of the second phase of the Ruppi Leather, Damietta furniture, the implementation of the first phase of the Golden Triangle and the city of Kom Oshim, S tribal industrial face in Beni Suef, Minya, Assiut, Aswan and Luxor.

The government is also seeking to develop an investment card, prepare 100 feasibility studies for projects eligible for bank financing and create a fund to finance innovation development projects and scientific research in partnership with the private sector.

On the other hand, the government program provides for legislative reforms, including the promulgation of the unified law on industry, the unified law on quality, the deepening of the industry automobile and the transformation of the executive apparatus of mining projects into economic organizations. Conducting institutional reforms in the sector through the integration of technology centers of the Industrial Modernization Center and the Quality Institute of the Authority of Standards and Quality.

In addition to targeting the government to increase the number of standards to achieve 1000 specifications instead of 500 specifications during the current period, and reduce the time of analysis of the Ministry of Industry's industrial samples laboratories. Industry up to 3 days instead of 30 days.

In the case of troubled factories, the problems of these factories are solved by the Egyptian Venture Capital Company, established with a capital of £ 150 million, which provides for financial allocations to solve the problems of the projects in difficulty and give priority to important projects. Urgent and direct response to citizens in 88 projects with investments of 4.2 billion pounds.

Mohamed Farid Khamis, President of the Egyptian Federation of Investor Associations, affirmed the willingness of the business community to participate in the realization of industrial development plans, underlining the need to improve the quality of Egyptian products and increase their competitiveness.

He explained to the importance of the government pursuing the policies it initiated during the previous period to rationalize imports and maximize the capabilities of domestic firms and factories to restore the market and to achieve profitability offsetting the losses incurred.

The industrial sector needs an urgent intervention by the state to avoid the potential increase in production costs resulting from the final reform policies, notably the decision on the prices of the industry. electricity and petroleum products. Moharram Hilal, vice president of the Egyptian Federation of Investor Associations and Chairman of the Holding Group, said the government's program was the most ambitious to solve all industrial and industrial problems and create more competitive industrial complexes. for imported products.

explained that the Union was to meet with the engineer "Amr Nassar" Minister of Trade and Industry in the coming days to discuss mechanisms for participation in the implementation of these plans according to specific timelines. The operation of troubled factories is part of the government's plans to save them through a newly established venture capital firm. Hossam Farid, chairman of the local industrialization committee of the Federation of Egyptian Industries, stressed the absolute necessity to grant exceptional incentives to priority sectors for the deepening of the industry, as the Engineering and textile, and support the industrial sector. Manufacturers to supply their needs rather than to import.

He welcomed the government's intention to bring more new land to investors, but it is imperative to operate the factories at full capacity instead of the current recession, resulting in the contraction demand rates in the domestic trade sector.

Farid called for the need to find decisive solutions to the problems of failing plants before embarking on new investments in the sector, especially since most of the problems faced by these factories are technical problems. or financial.

Hani Tawfiq, former managing director of the venture capital firm, said the government's proposed solutions to the problem of faltering factories are inadequate, especially as the number of factories on the market far exceeds the list of companies in the Industrial Modernization Center. With a capital of about 150 million pounds.

explained that it was first necessary to identify the highest priority areas to focus on the nature and ability to restore production and profitability, in addition to the contract with several companies and banks of Private investment capable of effectively contributing to the studies needed to revive these plants, especially since most of their problems are technical and marketing in the first place.

On CBE's initiative for defaulters, Tawfiq stressed the need to review the criteria for establishing negative lists of companies in banks, noting that not all defaulters are able to float their debts because the failures are due to operational losses, On the restructuring of the production after repayment of the debt.

Egyptian banks recently began to participate in the initiative recently launched by the Central Bank of Egypt, aimed at limiting the list of defaulting customers of companies and individuals, estimated by the central to about 3 500 companies and 337,000 individual customers. The initiative includes bad debts from companies whose balances are less than 10 million pounds.

Mohamed El-Morshedi, a member of the People's Assembly and chairman of the Transit Investors Association, said the government's plan for the industrial sector is a great hope for allowing the 39, Egyptian industry to recover fully.

One of the influential reform measures included in the government plan that will positively reflect the creation of new jobs for citizens is the completion of the construction projects of 13 new industrial complexes and the completion important projects such as the Rubikis and the Golden Triangle.

He points out that the initiative of the Central Bank and the company's risk guarantee is a partial solution to the problem of troubled factories. But it is not enough to revise the lists of these factories and to identify the reasons for them. [Jsid=id;jsasync=true;jssrc=”http://connectfacebooknet/ar_AR/alljs#appId=&xfbml=1″;dgetElementsByTagName('head')[0] .appendChild (js);} (document)); [ad_2]
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