“Feeding Industries” discusses 20 proposals to encourage “ingredients” with international entities

Engineer Ali Tawfik, head of the Feeding Industries Association, said a plan of 20 proposals to boost the production of auto components in Egypt during the coming period is currently being discussed with international companies.

He explained that talks have already begun with an international entity specializing in the production of auto parts to hear his point of view on the incentive elements included in the association’s vision, with the understanding that other companies will be heard later.

He added that the most prominent items are related to the facilitation of land acquisition procedures and the smooth provision of facilities, while he confirmed that there will be no tax breaks with the explanation that in that case the home country of international companies will benefit from the collection of fees.

He pointed out that the return for this is to support competitiveness in the market, and not to displace the private sector over the projects in which it decides to invest, stressing the importance of unifying the procedures that all competitors deal with.

He emphasized the need to establish specialized ports for export while facilitating the transportation of goods by qualified trains, especially since these companies will direct the bulk of their production to foreign markets and will not satisfy the needs of domestic specialized entities. in the field of vehicle assembly.

He explained that it is necessary to establish a training center that will provide qualified personnel to work on these projects, and it can be financed through a foreign donor. Emphasizing that obtaining trained labor at an affordable price is one of the main goals of global factories to redirect production to southern countries.

He added that during the preparation of this plan, the association used the experiences of competing countries to Egypt that managed to deepen their components and automotive industry, such as Morocco, which approached the production of one million cars per year, as well as Tunisia and Rwanda, adding that Saudi Arabia entered the competition for attracting global factories.

He added that foreign investors compare the procedures and benefits provided by different countries, and accordingly decide whether to pump capital or not, which requires quick action to improve the sector.

He added that the plan adopted by the government to stimulate the auto industry does not rely on the development of the animal feed industry, but indirectly on the basis that increasing the productivity of assembly companies will eventually lead to a revival of demand for components, and subsequently their development, given that this time is not guaranteed and cannot be relied upon.

Last June, Dr. Mostafa Madbouly launched the national strategy of localization of the automotive industry, noting that the volume of car imports reached 4 billion dollars last year because our domestic production did not exceed 300,000 cars.

The government approved a law that includes several incentives for the localization of the car industry, the formation of a higher council for the localization of car production, the allocation of incentives to clean industries and giving consumers EGP 50,000 to buy clean cars. A law was issued on the formation of the Supreme Council for Automobiles, and Madbouly said: We have signed a contract to establish the largest factory for the production of electric cables, which will start operating at the end of 2023, and will be the center for financing automobiles in the world.

The head of Nissan confirmed Egypt’s ability to become a center for car trade, pointing out that Africa’s needs in 2030 will be 5 million cars, and therefore there are comparative advantages for doing business with the African market, according to the prime minister.

dr. Ahmed Fikry Abdel-Wahhab, general manager of the East Port Said Development Company, said in the same context that the percentage of local car production reached 54% in 2017, noting that thanks to the free trade agreements signed by Egypt, we reached 300,000 cars in 2021 , and thanks to these agreements, the goal is to produce 600,000 cars in 2030.

He added that we have the opportunity to become the center of the automotive industry in Africa and the Middle East, and we are about to sign 3 memorandums of understanding with 3 international car manufacturers in the industrial zone east of Port Said.

He pointed out that the establishment of the car traffic project on the sea berths east of Port Said encourages the settlement of the auto industry in the region.

The head of the Animal Feed Industry Association said that the sector needs a detailed blueprint separate from complete cars with regard to the mechanisms of advancement and development. Because the connection of the two sectors will eventually lead to a significant slowdown in the component industry, as is the case now, adding that the association itself took the initiative to find that scheme, and will agree the briefs with international companies. they will be presented to the competent state institutions to make a final decision on them, and after that, these subjects will be answered positively or negatively.

He emphasized that component factories need special incentives independent of cars in order to be able to compete strongly on world markets through exports, which favors the indicators of the national economy, which requires a quick rehabilitation of the sector so that its products reach various countries without hindrance. , especially with the existence of many international trade agreements that connect Egypt with other countries and large economic blocs such as the European Union, Mercosur and Agadir.

He stressed the importance of activating local product preference laws by government agencies, which will encourage international companies to invest in Egypt, whether in cars or components, while facilitating export procedures.

He pointed out that local production is the pillar of the Egyptian economy to rise from the decline, especially with successive crises in which markets witness the flight of hot money in a way that confirms the necessity of not betting on it and relying on production.

dr. Mostafa Madbouly, Prime Minister, said that 8 gold licenses have been approved, which will be presented to the Council of Ministers on a weekly basis to support Egyptian industry, explaining that the global crisis teaches us the necessity of almost total reliance on our industry and equipment.

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