Eng. Mohamed El Sewedy, President of the Federation of Industries, said that the material support of exports does not bear the required fruits in increasing exports, so it should be directed to support services and develop the industry.
He pointed out during a meeting organized by the General Federation of Chambers of Commerce on the export support program that the Union has called for increasing the allocations of the Export Risk Guarantee Fund in order to encourage Egyptian exporters to be present in the African market, especially that the competitors receive great support and the exports are guaranteed 70% Value of products.
The real support should be to open up new markets and develop the industry from obtaining quality certificates and training, rehabilitating the workforce, bringing experts to develop factories, supporting the added value chain, removing bureaucratic obstacles, and developing test laboratories and supporting them with modern equipment, he said.
On the other hand, some sectors of the state and government agencies do not strictly follow the laws, especially the Local Product Preference Law No. 5, which gives priority to partnerships with an added value of 40% in state projects.
He stressed that the application of laws and activation on the ground encourages the various sectors to grow and increase production capacity and development of production.
Al-Suwaidi pointed out that there is a problem faced by the industrial sector as well, namely the application of specifications, whether Egyptian or international, a share, and that these specifications are not checked and not supported by the auditing bodies, as well as the continued adoption of certificates of origin in embassies.
He pointed out that all these matters put burdens on the Egyptian products. Therefore, the state should encourage the various industries to grow by clearing the obstacles they face in importing the necessary raw materials, just as in the textile industry, the importation of short staple cotton to only 7 countries.
Al-Suwaidi added that the increase in exports will only take place in the case of the growth of industry and the increase of production capacities. Therefore, the industry should be supported and assisted in overcoming obstacles and obtaining quality certificates as well as reducing the cost of shipping and transportation.
He pointed out that the Union has prepared an urgent reform agenda and presented it to the Prime Minister on the most important problems facing the various industrial sectors and the most important proposals for solving them. In addition, the Prime Minister is being updated on a monthly basis.