Egypt’s industrial sector contributes 11.7% of GDP
Newspaper Title: https://dailynewsegypt.com/
Newspaper Number:
Tuesday - 28 June 2022
Minister of Trade and Industry Nevine Gamea stated that industry contributes 11.7% to the country’s GDP and employs about 28.2% of the total Egyptian workforce, and that its investments amounted to approximately EGP 49bn in FY2020/21, representing about 6% of total public investments.
She also said that the industry and trade sectors have achieved tangible development over the past eight years since President Abdel Fattah Al-Sisi took office in 2014.
Moreover, the Egyptian government has paid unprecedented attention to developing industrial sectors and increasing export rates, as they are among the mainstays of the national economy and the engine of comprehensive economic development in Egypt. They also play a pivotal role in achieving social stability by providing job opportunities for young people and improving citizens’ living standards.
She added that the value of industrial production also increased to around EGP 982bn in 2021 and that Egypt enjoys a diversified industrial base that includes about 150 industrial zones distributed across all governorates.
Furthermore, the minister pointed out that the government exerted more efforts to provide industrial lands connected with utilities and services, establish cities and specialised industrial complexes, in addition to establishing a road network covering all parts of Egypt to support logistics, as well as providing soft financing programmes for all productive projects. Accordingly, the government has provided 43.5m sqm of industrial lands over the past six years.
The government has also granted operating licenses to 63,736 establishments and approvals for the establishment of new industrial projects and expansions for 82,152 facilities that provide 4m direct job opportunities.
Additionally, it conducted 100 stimulus measures to advance Egypt’s industry, including 58 short-term measures, 33 medium-term measures, and nine long-term measures, with the minister clarifying that 66 of said measures have been completed so far, and the rest are ongoing.
These procedures aim to provide the needs of the local market in addition to increasing Egyptian exports to global markets, according to a systematic plan based on the acceptance and popularity of Egyptian products in these markets.
The minister elaborated that — in conjunction with challenges that the global economy has witnessed since the outbreak of the COVID-19 pandemic — President Al-Sisi directed to strengthen partnerships with the private sector on infrastructure and national projects and to rely on Egypt’s industry to supply the needs of these projects, which contributes to stimulating national production through investment in infrastructure as a main engine for the advancement of the economy.
The most prominent of these projects included the establishment of more than 4,800 km of roads, the development of railway system for transporting goods, the New Suez Canal, the development of commercial ports by increasing the length of berths, establishing eight new airports, and establishing new power stations.
This in addition to reclaiming 4m feddans and the inauguration of development projects such as the Decent Life Presidential Initiative to develop Egypt’s countryside.
She explained that these strategic projects contributed to creating a large local demand for products of the various industrial sectors — the most important of which are building and construction materials, chemicals, furniture, and engineering — with the aim of supplying about 70% of the total needs of these projects.
These projects also contributed to providing an opportunity for the country’s industry to expand, increase its production capacity, and provide more job opportunities, thus contributing to improving the standard of living of citizens.
