Although the Local Product Preference Law No. 5 of 2015 was issued 6 years ago, with the political leadership’s keenness to upgrade the national industry, there is no occasion without instructions from President Abdel Fattah El-Sisi to rely on local industry as a substitute for the importer, and to work to deepen local manufacturing, except There are some difficulties to achieving this.
The Chamber of Engineering Industries of the Federation of Industries has received a number of complaints from companies that are members of the Chamber affected by the failure to implement Law No. 5 of 2015. The complaints sent to the Chamber demanded that companies and government ministries enforce the law.
It is noteworthy that Law 5 of 2015 regarding the preference for Egyptian products in government contracts, was published in the Official Gazette in early January 2015 and the provisions of the law apply to purchase contracts and project contracts concluded by the units of the states administrative apparatus such as ministries, departments, agencies, local administration units and public bodies. And public sector companies and public business sector companies.
The electricity, drinking water, sewage and petroleum companies were among the most affected companies.
The “Al-Ahram Gate” had published statements by the Minister of Trade and Industry on February 15, 2020 in its first press conference with journalists and the media, as it announced that the ministry was in the process of making an amendment to the law on preferring local product in government contracts to effectively enforce the law and avoid practical application problems. For the current law.
She indicated that the new amendments aim to ensure that project assigning bodies adhere to the articles of the law and that there are no loopholes to circumvent implementation, in addition to making preferential advantages available in the law on all purchase contracts and projects to government agencies covered by the decision, but nothing new has happened since the Minister’s announcement so far. .
Chamber of Engineering Industries
For his part, Mohamed Al-Mohandes, head of the Chamber of Engineering Industries at the Federation of Industries, said that complaints were received by the Chamber from most factory owners, members of the chamber being harmed by state and public sector agencies by not activating Law No. (5) of 2015 favoring the local product and refusing to implement it. (9) Of the law on the establishment of the Egyptian Industrial Product Preference Committee to be established in the Council of Ministers and headed by the Minister, and provided for a technical secretariat for the committee to meet weekly to examine the complaint submitted.
The engineer explained that he had sent in a previous memorandum to Nevin Jama, Minister of Trade and Industry, that the chamber requested the assistance of the committee that has not met since the issuance of the law five years ago, except only once and over and over to convene this committee, but it did not reach anything.
The engineer called on the minister to activate the role assigned to the committee in support of the national industry and to confront imported products supported by her country, in line with the current initiative of the President of the Republic to encourage national industry, explaining that there is still a kind of inactivity of the law so far, with evidence of more than one complaint.
The engineer stressed the importance of continuing to encourage and favor the local product and component in the various government purchases, in an effort to support and encourage the local industry, which contributes to maximizing production capabilities and expanding the export base, in addition to providing more new job opportunities.
The Local Product Preference Law aims to place the national industry on an equal footing and ensure fair competition with imports coming from abroad for projects established in the Egyptian market, noting the importance of preserving the national industry as it is the engine of economic development and one of the most important sectors that provide job opportunities in the national economy.
Delta Fertilizer Company
For his part, Mohamed Mukhtar Ibrahim, a member of the Chamber of Engineering Industries, said that his factory works in the field of automatic control systems, and without this strategic industry, the state may lose the importance and capacity of its industry.
He pointed out that there is a desire from some officials in government companies to always strive to import foreigners, even though the Egyptian product, whose local component percentage exceeds 85%, has exported it to all countries of the world, Sweden, France, Spain, Italy, and America, the American Corps of Engineers.
"Mukhtar" called for the necessity of activating the law and fair competition with the foreign product, and this will only happen with two things. The first is that the consulting offices that set the specifications must include in their job structure engineers who know the meaning of "Control Systems", and the evaluation is based on a specification and not on the basis of a trade name. To foreign companies.
The second matter is defining foreign companies with Law 5 of 2015 in order to implement the Local Product Preference Law, pointing out that the countries of the world are looking for their interests.
"Mukhtar" wondered if we had exported to all countries of the world, then how could the Egyptian producer not be present in his country? Adding that he sent a memo to Minister Nevin Jameh to solve the companys problem with the Delta Fertilizer Company.
He called for the importance of spreading the culture of preference for local products in national and private sector projects, noting that the Egyptian industry has recently witnessed major technical and technological developments that qualify it to compete with global products.
Water and Sanitation Company in Qalyubia
For his part, Bilal Abd al-Nabi Jalal, a member of the Chamber of Engineering Industries and the owner of one of the companies, said that the memorandum sent to the Chamber of Engineering Industries in which he was harmed by the Drinking Water and Sewerage Company in Qaliubiya by unjust objection to evaluate the local product by grades, according to what came in the memorandum.
Bilal explained that his Egyptian company, headquartered in the tenth of Ramadan, manufactures submersible and turbine submersible deep pumps with locally manufactured products, calling for the necessity to activate Law 5 of 2015 regarding the preference for local product, which is in line with the states vision of deepening local manufacturing and limiting imports of everything that has a local equivalent in order to save. For hard currency and to encourage local industry.
For his part, Engineer Mustafa Mujahid, President of the Drinking Water and Sanitation Company in Qalyubia, in response to the complaint, said: