Egypt’s Ministry of Trade and Industry is currently coordinating with the state’s industrial community to encourage them to manufacture raw materials and production requirements locally, Nevin Gamea told Daily news Egypt
These efforts aim to meet the needs of the country’s industry, by networking national manufacturing chains, deepening local manufacturing, and achieving integration between the government and private sector, according to Minister Nevine Gamea.
Egypt’s industrial scene following COVID-19, and the most promising industrial sectors
Despite the many challenges that have affected the global economy as a result of the ongoing COVID-19, Egypt can exploit this crisis to expand local industry and increase the proportion of Egyptian components in products.
The opportunity can be exploited by investing in feeding industries and refer to local production requirements to decrease imports. This comes particularly in light of the pandemic, which caused the closure of many factories and reduced production capacities of other factories in the majority of countries supplying production requirements to Egypt.
The post-COVID-19 phase includes radical changes in global economic systems and relations that may affect commercial and industrial businesses around the world. It is also likely to affect jobs, air and sea travel, as well as the flow of funds from central banks and governments, to prevent the world from entering an economic recession.
The pandemic has resulted in a dire need for more measures internal to countries, to secure energy and food resources. Additionally, international borders suddenly became more valuable and important, after countries kept hold of equipment and medical supplies.
Countries also sought to increase their domestic production, without looking at the needs of other countries. Consequently, the new economic system must be more flexible after the end of COVID-19, so that countries achieve a balance between taking advantage of economic globalisation and need for self-sufficiency at the level of industrialisation and domestic production.
The COVID-19 crisis has revealed many opportunities in addition to challenges, as it prompted Egypt to pay attention to transitioning to a green economy. Moreover, the government also seeks to strengthen value-added chains and localise industry, besides achieving structural reforms in various sectors.
Despite the closures and ensuing collapse in trade exchange rates worldwide, and the halt in international production and exports, the production wheel did not stop in Egypt. This was because the government was keen to continue the production process, while preserving the safety of workers. Perhaps the important reason behind the Egyptian economy’s resilience during the COVID-19 crisis was the diversity of the Egyptian economy structure.
Accordingly, the Egyptian Commercial Service and its overseas offices have been assigned to encourage more communication between Egyptian producers, exporters and their counterparts abroad. This comes on the back of international flight suspensions around the world, with the aim of preserving the Egyptian presence in foreign markets.
I believe that the current crisis represents a great opportunity for Egyptian manufacturers to depend on national industries and limit imports. Therefore, we are currently coordinating with the industry community to encourage them to locally manufacture raw materials and production requirements to meet the needs of Egypt’s industry sector.
This will take place through networking with national manufacturing chains, deepening local manufacturing, and achieving integration between the government and private sectors.
Among the most promising industrial sectors at present are engineering, building materials, metallurgical industries, food industries, chemical industries, the medical and pharmaceutical sector, and textiles.
New facilities will be provided by the Egyptian government manufacturers and exporters
The state has not and will not delay in providing support to productive sectors in general and export in particular. Henceforth, the government is keen to provide more facilities for this vital sector. For instance, Egypt has provided urgent measures since the COVID-19 outbreak, which have helped preserve productivity rates and employment at factories, whilst preserving the presence of Egyptian products abroad.
Egypt’s plans to activate African Continental Free Trade Agreement (AfCFTA) and benefit from it
The AfCFTA, which came into force at the beginning of 2021, is a major step on the road to economic integration in Africa, through establishing the Common African Market to reach the African Economic Union. The agreement promotes sustainable development and increases growth rates across the continent, in line with the Africa Vision 2063 agenda.
Through the actual liberalisation of trade within the agreement, the continent will see a real qualitative leap in economic performance, and development, regional and continental integration. This is through productive and commercial integration based on competitive advantages and building value-added chains across the continent.
The African continent represents the future market for Egyptian exports more than any other market in the world, as the AfCFTA will contribute to increasing the volume of trade between the current African countries from about 13% to 25% or more.
The agreement will contribute to developing infrastructure and achieving industrial development in the continent. It will also facilitate the movement of people and transfer of technical expertise and trade-related services, which include energy, information and communication technology, financial, educational, health and professional services of great importance for sustainable economic growth.
The Ministry of Trade and Industry is currently making efforts, in coordination with all national authorities, with the aim of starting actual trade within the agreement’s framework. This includes introducing the business community to the agreement, opening new markets for Egyptian products and integration with African countries.
Egypt’s political leadership is attentive to activating the agreement, and President Abdel Fattah Al-Sisi has directed the formation of a committee headed by the Ministry of Trade and Industry.
The committee will also have the membership of representatives from ministries and other concerned parties to study all aspects related to commercial and financial integration within the agreement.
