A golden license revives the hope of investors and eliminates red tape
Numerous investors and businessmen have assessed that the golden license has a positive role in encouraging the attraction of new projects and increasing investment in existing projects, highlighting its ability to reduce bureaucracy, given that it provides a unique approval for obtaining permits, starting with construction operations and ending with start-up operations.
Investors pointed out that the main advantage of issuing a gold license is the speed of launching projects, then pumping in new investments, and the possibility of greater employment.
Investors explained that this is an important step to attract a large number of projects, but minor changes related to approval controls are needed to reduce costs, along with the importance of establishing a specialized unit in the Main Investment Authority to communicate with applicants and those who wish to get them for further facilitation.
Investors emphasized the importance of changing some provisions of the license regulations, including the non-obligation to provide infrastructure for the project, and the recognition of only bearing the costs of building these logistics services, with the establishment of an electronic platform for receiving requests to facilitate procedures.
The High Commission for the granting of approval for the “Golden License” has approved 8 projects in preparation for their presentation to the Council of Ministers at the nearest session for formal approval, while currently studying new requirements, in order to present them to the Council of Ministers for approval. through the Supreme Board of the Council, chaired by Dr. Mostafa Madbouly.
Magd El-Din El-Manzlawy, Chairman of the Industry Committee of the Businessmen’s Association and Chairman of the Board of Directors of the Egyptian-Chinese Businessmen’s Foundation, said that the golden license represents an attractive element for the expansion of the establishment of new projects. abroad and at the local level by investors, adding its ability to accelerate procedures related to the establishment and establishment of projects.
Al-Manzlawy explained that the Egyptian-Chinese corporation aims in the coming period to attract Chinese investments for the establishment of projects within the Egyptian market in various sectors, primarily the localization of technology and the animal feed industry, and factories that produce components and production requirements that are imported from abroad in order to quickly meet the needs of the industrial sector and reduce the demand for foreign exchange.
He continued that the gold license represents a unique approval and then a good opportunity for the localization of industry in Egypt, and also helps the country to implement the strategy of localization of industry for the coming period, despite external challenges, crises, the Russian-Ukrainian war, confusion in supply chains and negative the effects of the Corona pandemic, which still represents a challenge for the previous communication with Chinese investors.
In a related context, Dr. Medhat Nafeh, Chairman of the Board of Directors of Arab Bullion Company, demanded the establishment of an independent unit within the Investment Authority, which works to communicate directly with those who wish to apply for this license by simply filling out a simple electronic form, provided that the employee in charge for the unit provide investors with all necessary controls.
Nafeh emphasized the importance of expanding the work with many financial initiatives that help the industrial sector to work, in light of these circumstances and challenges, even if it is financed through specialized funds under the supervision of the Directorate of Investments, especially the industrial sector.
Nafeh explained the importance of changing the seventh clause of the conditions for obtaining a license, which represents a challenge for investors, because it is enough that the investor undertakes to pay his obligations related to the connection of facilities and infrastructure, and not to undertake to manage them.
He continued that the conditions for issuing a gold license are specified in the seventh point, according to which the investor is obliged to submit a statement on the obligation to provide all infrastructure facilities, including roads, water, sewage, electricity, communications, and action in case of violations. clause is one of the most important conditions for obtaining a golden license.
It is important to note that Dr. Mostafa Madbouly, the Prime Minister, ordered the establishment of an office to receive applications for projects that want to receive a “golden license”, provided that applications are regularly submitted to the Technical Secretariat of the Supreme Committee to the Council of Ministers, and then the submitted requests are submitted to the Supreme Committee Council, which decides on approval. For the award of the “Golden License”.
On the other hand, Dr. Walid Gaballah, economist and member of the Egyptian Society for Economics, Statistics and Legislation, emphasized that the ultimate goal of implementing the industrial localization scheme is to remove all obstacles and bureaucracy that investors face, and to abolish the endless permit cycle.
He pointed out that the single agreement facilitates and shortens the procedures for obtaining permits and is under the personal supervision of the prime minister to ensure rapid implementation.
He added that the license collects all the consents and steps that an entrepreneur, domestic or foreign, requires from obtaining land, a building permit, and all mechanisms related to work and the management process, along with the creation of an electronic platform that contributes to a quick review and examination of investor requests.
Jaballah stated that the state launched many incentives to localize the industry, especially after the economic conference, and implemented many of its recommendations requested by investors, while working to reduce the intensity of documentary letters of credit and expand the substitution of local products to reduce import rates.
He expected a large response from investors to establish new projects through the gold license, especially those working in industrial fields that need what is called a “one-stop shop” and the availability of this license, which accelerates the completion of the establishment procedure and the start of production, to face by successive development from the outside.
Gaballah pointed out that these accelerated incentives to meet the demands of manufacturers contribute to the implementation of the state strategy towards the localization of industry, and to the rapid implementation of procedures for granting licenses to many projects and factories, especially in Suez. Kanal economic zone.
He explained that the most important challenge faced by the investor is bureaucracy and red tape, and the elimination of this challenge represents a direct contribution to the achievement of the state’s goals towards the growth of the industrial sector.
In a related context, Dr. Mohamed Helmy, a member of the Egyptian Federation of Investor Associations, confirmed that he noticed, since the start of the activation of the single approval under the chairmanship of the Council of Ministers, that there has been a response from industrial investors, because it represents a good incentive for starting new projects.
He explained that this license contributes to eliminating the fears of businessmen related to the long deadlines that were necessary for projects to obtain licenses and start operating.
Helmy added that the license helps many important industries that needed approvals of at least two years to complete quickly, especially the aluminum industry, energy-intensive industries and other projects that require environmental approvals as a prerequisite.
He explained that the golden license includes all safety, executive and environmental approvals, infrastructure insurance, building permits and all necessary conditions for starting a project, especially large industrial projects.
He stated that the Council of Ministers launched a unique link on its website for receiving requests from investors who want to obtain a “golden license”, in order to facilitate procedures and speed up communication with industrialists and businessmen.
It is important to note that the state has set some controls and conditions for obtaining a gold license, as it requires the company to have the form of a “joint stock company” or “limited liability company”, in accordance with the provisions of the Investment Law promulgated by Law no. 72 from 2017 or the law on joint-stock companies and limited liability partnerships and similar limited liability companies, sole proprietorships, and promulgated by Law no. 159 from 1981.
Certain controls stipulate that the share capital of joint-stock companies and limited liability companies must not be less than 20% of the investment costs of the project, with the obligation to provide evidence of the financial ability to implement the project, and that the company is subsequently established on the date of entry into force of the aforementioned law on investments.
The controls also include the need to submit an initial feasibility study for the project, made by one of the authorized domestic or international expert houses, with the obligation to submit the dynamics of project implementation.
And submit a statement on the obligation to provide all special facilities in the infrastructure (roads – water – sewerage – electricity – communications – waste treatment), while complying with all requirements and controls related to the company’s activity, in accordance with the laws and regulations governing .
President Abdel Fattah El-Sisi tasked the President of the Republic to quickly consider all the requests of investors within the strategy of localization of the industry and reliance on the local component in order to reduce the import bill.
The Senior Committee for the Award of Golden Permits and Unique Approvals is chaired by Dr. Mostafa Madbouly, Prime Minister, which includes Dr. Yasmine Fouad, Minister of the Environment, Dr. Assem El-Gazzar, Minister of Housing, Utilities and Urban Communities, Major General Hisham Amna, Minister of Local of Development, and Eng. Ahmed Samir, Minister of Trade and Industry. , and the Chief Executive Officer of the General Administration for Investments and Free Zones, as well as officials of ministries and competent authorities, to ensure that a single approval is granted by all parties.
The Supreme Committee agreed to grant a gold license for 8 investment projects, including the establishment of an industrial complex for electrical appliances in favor of “Haier Electric Egypt Limited” and the establishment of a plant for the production of animal feed, chemicals and plant nutrients related to “CFC food and chemicals” within the framework of the private free zone system.
The approvals also include the establishment and operation of a factory for the production and assembly of finished and semi-finished household, electrical and visual appliances and their components for the “El-Araby Group Company for Industrial and Commercial Development”, as well as the “Misr Green Hydrogen Company” Project. For the production of “green hydrogen” from a 100 megawatt production facility in the Ain Sukhna industrial zone and the “Egypt Green Ammonia” project for the production of green ammonia with a capacity of 1 million tons per year in the Suez Canal industrial zone. Economic zone.
It also includes the project “Yazaki-Egypt for electrical distribution systems” in the system of private free zones, for the production of electrical systems for the distribution of cars of all types.
The “SE Wiring Systems Egypt” project also received a golden license. For the production of wiring systems for cars and vehicles of all types, and the “City of Vaccines and Biotechnology”, which testifies to the establishment and operation of a factory for the production, packaging and packaging of vaccines, human and veterinary serums of all types. , biological preparations, biotechnology and production requirements.