Dr. Mostafa Madbouly, Prime Minister, held a meeting today at the government headquarters in the New Administrative Capital to follow up on efforts to enhance export rates from various productive sectors As well as ways to deepen local industries, which in turn contribute to increasing export rates, which consequently enhances the dollar receipts from exports
The meeting was attended by Eng. Ahmed Samir, Minister of Trade and Industry, Major General Essam Al-Naggar, Chairman of the General organization for Export and Import Control, and heads and officials of export councils.
At the beginning of the meeting, the Prime Minister indicated that the dollar shortage crisis that the Egyptian economy has experienced during the last period is a result of many successive external shocks. Despite its difficulty, it demonstrated the inevitability of relying on the sustainability of hard currency resources, adding: “Everyone agrees that industry and export are considered among the most important resources generating hard currency.”
Dr. Mostafa Madbouly, in his speech to the heads of the export councils, said: “I have previously met with you more than once, with the aim of working to push and stimulate the various export sectors.” Pointing out that Egypt's total exports amount to 53 billion dollars annually, and "with a simple calculation, if these numbers are increased by 17-18%, in 2030 we will reach the value of exports to about 145 billion dollars."
The Prime Minister continued that the current period is witnessing stability in the availability of dollar resources, stressing that the government is working through more than one axis to ensure the sustainability of the state’s hard currency resources.
He added: “We are here today to listen to your visions and proposals, and to know your demands from us as a government, and what we should move towards according to a realistic approach to achieving these goals.” We must be able to measure this, according to a clear mechanism.”
Dr. / Mostafa Madbouly stressed the government’s readiness to respond to any requests to localize and deepen the industry locally, and expand existing industries. He added: “We have a list of a number of products and industries that we need, and there are incentives that will be offered to those who localize the manufacture of these products.
Counselor Mohamed Al-Homsani, the official spokesman for the Presidency of the Council of Ministers, said that Dr. Mustafa Madbouly discussed during the meeting the export burden refund program. He stressed that the government has one specific goal, which is “to have an increase in our exports from 15% to 20% annually.” In this context, the Prime Minister instructed all attendees to formulate a practical implementation plan to achieve these goals according to a specific timetable, indicating that he would meet again with them after two weeks, to discuss this plan and settle on its terms.
Meanwhile, the Minister of Trade and Industry reviewed a report on merchandise export rates during the first quarter of the current year 2024. It reached 9 billion and 612 million dollars compared to 9 billion and 129 million dollars during the same period in 2023, achieving an increase rate of 5.3%.
The minister explained that the report included the largest receiving markets for Egyptian commodity exports during the first quarter of this year, which included Turkey, with a value of 874 million dollars. The Kingdom of Saudi Arabia, with a value of 792 million dollars, the United Arab Emirates, with a value of 586 million dollars, Italy, with a value of 544 million dollars, and the United States of America, with a value of 471 million dollars.
He added that the report included the most important export sectors that formed the structure of Egyptian merchandise exports during the first quarter of this year,and included building materials worth one billion and 958 million dollars, food industries worth one billion and 546 million dollars, and chemical products and fertilizers worth one billion and 445 million dollars, agricultural crops worth one billion and 444 million dollars, engineering and electronic goods worth one billion and 272 million dollars, ready-made clothing worth 673 million dollars, spinning and textiles worth 273 million dollars, printing, packaging, paper, books and artistic works worth 244 million dollars, and medical industries worth 156 million dollars, furnishings worth 141 million dollars, furniture worth 67 million dollars, handicrafts worth 52 million dollars and leather, shoes and leather products worth 34 million dollars.
The report pointed to the most prominent export items that achieved an increase in the structure of Egyptian merchandise exports during the first quarter of 2024, which included fresh and dried citrus fruits at a value of 625 million dollars, Nitrogen fertilizers worth 421 million dollars, insulated wires and cables worth 339 million dollars, petroleum oils worth 317 million dollars, and gold worth 303 million dollars.
Eng. / Ahmed Samir said that the report contains indicators of the industries that must be supported, and these are the industries in which we have a competitive advantage.
In turn, the heads and officials of the export councils pointed out during the meeting that we have a competitive advantage in some industries, and therefore we must work to support them and increase their production capacity.
They stressed the necessity of having an indicative price for agricultural crops, especially as they are an essential component in the food industries. And work to increase land shipping rates to neighboring countries and facilitate its procedures, with the need to promote the distinguished Egyptian food product, which has a good reputation.
The heads of the export councils also presented a proposal to issue what could be called a tax-exempt “exporter’s licence.” This allows us to have a new profession, the “exporter” profession, stressing that this profession will witness great demand, especially in light of the provision of appropriate incentives.
They stressed the need to expedite the disbursement of the value of refunding export burdens, and that it should be aimed at attracting more foreign investments that contribute to the localization and deepening of local manufacturing, Especially for the feed industries and ingredients, by providing appropriate incentives to attract these investors to provide them for the local market, as well as for export.
They pointed out that the export burden rebate program must be clear, frank, and continuous for a long period, and that disbursement must be taken into account on fixed dates.
