Egypt: Conference on the future of Egyptian industry in the light of global transformations

The conference on the future of Egyptian industry in the light of global transformations, organized by the Egyptian Center for Strategic Studies (ECSS), was launched on Saturday morning, March 26, 2022.

The conference discussed, in the first session, qualitative transformations globally and their impact on the industry, while the conference discussed, in the second and final session, a roadmap for location and development of the industrial sector.

The conference also addressed successive global developments with a view to understanding their implications for the future of industrial business systems.

The conference highlighted the importance of training, research and development to ensure the competitiveness of Egyptian industry.

The conference also reviewed plans to attract foreign direct investment to Egyptian industry and mechanisms to enhance the role of the private sector in Egypt’s industrial sector, in addition to discussing mechanisms to maximize the role of manufacturing industries. in sustainable development and plans to locate industries in the governorates and achieve spatial development.

Globalization controls the international system…and global crises are causal

In this regard, Senator Dr. Abdel Moneim Saeed, Head of the Advisory Body of the Egyptian Center for Strategic Thinking and Studies, confirmed that Egypt faces international challenges in the field of industry, noting that globalization has dominated the world system over the past few decades in a way that the world has become a small village, but that small village has returned to its vast differences now. He explained that these differences are in the heart of the European continent, where the two world wars took place, and not in other countries like Afghanistan, Iraq or Georgia as happened before.

In this regard, Senator Dr. Abdel Moneim Saeed noted that the current crisis has two possibilities, the first is to get used to the crisis similar to what happened in other crises such as terrorism and Corona, while the second possibility is to reach a solution. Fortunately, there are already signs that the crisis could unfreeze in the coming months.

Saeed added that the current global crisis is causing a major economic crisis because it is at the heart of the global capitalist system, so it is adding great complications to supply chains around the world and affecting the price of the dollar from top to bottom, which affects local currencies.

He explained that all these problems facing the world are due to war and mutual threats between the poles that possess weapons of mass destruction, which affect the global economy and investments, and consequently Egypt from different manners. In this regard, he stressed the importance of localizing the industry.

He explained that the basic Egyptian model in terms of development is similar to the Asian model based on the creation of a real market economy which has a strong export capacity.

The senator pointed out that Egypt has completed the necessary infrastructure for this, but we need a big export market, because the Egyptian market in itself is not a big market. Therefore, if the global market is competitive, the regional market gives us more space that can accommodate significant growth in Egyptian industry, such as what happened with the integration-based eastern Mediterranean gas which has made Egypt a regional energy hub.

A Decent Life: We are looking for investment opportunities in each region

Justina Tharwat, Target Group Sector Manager at the Good Life Foundation, spoke about the role of the Good Life initiative in the development of the industry.

She said that a decent life is primarily aimed at developing people and the environment around it and providing a solid and quality product, in line with the Sustainable Development Goals launched by the United Nations, explaining that it there are 36,000 volunteers on the ground as part of the Decent Life initiative.

Major General Mohamed Ibrahim, Deputy Director of the Egyptian Center for Strategic Thinking and Studies, said the conference “The future of Egyptian industry in light of global transformations…towards more localization and integration” aims to propose visions that can contribute to the development of national industry.

During his speech at the conference, he raised a question: “Do the current global transformations represent an opportunity for the Egyptian industry?”, stressing that this is the question currently being posed on the scene, especially in the light growing indications that these These transformations will lead to reshaping the world industrial map and adjusting the balance of power at the international level.

Tracking of 131 customs items that can be produced locally

Engineer Mohamed Abdel Karim, head of the Industrial Modernization Center, said a committee of 18 ministries has been formed, led by the Ministry of Trade and Industry, to implement 100 proposals aimed at boosting the industry, in particular the strengthening of the control of industrial installations.

The head of the Industrial Modernization Center stressed the importance of industries and small and medium enterprises and their role as engines of growth.

Engineer Mohamed Abdel Karim said that many obstacles facing the industry have been studied, including property tax, as the state treasury will bear the property tax on factories for a period of 3 years.

He also explained that a list of 83 confirmed investment opportunities has been prepared for industrial products that can be produced locally instead of importing them from abroad, adding that the Industry Modernization Center has identified 131 customs items that can be produced locally, helping to reduce the import bill.

Final Declaration of the Conference

Conference participants recommended the following:

– The need to strengthen regional cooperation between Egypt and Arab and African countries in the industrial sector, especially in raw materials with a competitive advantage.

– Place local manufacturing of the Egyptian product at the top of the Egyptian government’s action plan.

– Strengthen the partnership between the public and private sectors to set up industrial projects to substitute for imported goods.

– Improve the investment climate.

– Increase the competitiveness of the local product on international markets.

– Stimulate foreign investment to establish research and development centers to help transfer knowledge and modern technology to the Egyptian state.

– Develop the establishment of industrial cities, within the framework of the economic reform program of the Egyptian State.

– Make a legislative amendment that includes the addition of mandatory clauses in government contracts for imports from abroad to include the transfer of technology and knowledge and the training of Egyptian workers.

– Develop the creation of schools and technological institutes.

– Develop societal awareness of the importance of technical education.

The declaration concluded on the need to promote environmentally friendly industries and to expand the production of clean energy sources.

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