What are the most recent developments in the 1000 factory project?
The Ministry of Industry and Trade has started to solve problems facing a number of the 1000 factory project serious investors yet they are few. Nearly 280 factories are currently operational and we strive to provide support and assistance to other investors through granting them one-year temporary licenses according to the resolution of the Supreme Council for Investment (SCI) chaired by President Abdel Fattah El-Sisi.
The SCI has accordingly approved that the Industrial Development Authority would grant one-year temporary industrial licenses until factories set there matters in accordance with regulations determined by the Minister of Industry and Trade.
Will there be any conditions for granting temporary licenses?
Yes, if a number of investors who have already been granted one-year licenses did not complete their licensing procedures, their lands would be withdrawn. Therefore, temporary licenses are only granted to serious investors.
How did the ministry deal with unserious investors in the 1000 factory project?
The ministry has already started to withdraw the lands from a number of about 200 to 300 investors. They did not build factories and did not even conduct feasibility studies for any project and we cannot let them own the land.
What incentives does the Industrial Development Authority offer to investors?
After ownership of Industrial lands is transferred to the Industrial Development Authority, incentives to be offered to investors vary from one investment project location to another. Incentives given to investors will therefore depend on project location. The investor who is given a land in the Upper Egypt region will be offered greater benefits than the investor who is given a land somewhere else. Thus, project locations determine appropriate incentives that will be offered to the investor.
What are the most recent developments in Magra Al-Oyoun Wall area?
Forty tanneries have been demolished so far in efforts made to relocate all leather industries away from the region. Demolition work will be carried out gradually in order to relocate all tanneries. A leather industry cluster will be established at Al-Rubeiky area and inaugurated in the next four months in order to relocate all leather industries from Magra Al-Oyoun Wall area where residents suffer from pollution because of these industries.
Will the ministry soon inaugurate new industrial zones?
Yes, a new industrial zone will be established in collabouration with a major international organisation at Koum Basheen, northern Al-Fayyoum governorate. The zone is an extension to the sixth of October industrial city and is located 25 kilometres to the city. It covers an area of 8 thousand feddans and it will be the second largest industrial cluster after 10th of Ramadan city. East Asian major organisations have been invited to discuss the detailed studies.
Would you tell us about industrial lands in Egypt?
We have industrial zones, which cover an area of over 10 million square meters, in Egypt and these zones must be utilised. Action plan is being developed to reach out to businessmen through the economic and technical project studies prepared by the ministry. Then, qualified investors will be selected and more detailed and specialised studies will be prepared.
Would you tell us about the strategy launched by the Ministry of Trade and Industry?
The ministry has launched its Industrial Development and Foreign Trade Strategy 2020, which aims at increasing the industrial growth from 18% to 21% of GDP. The primary engine of growth is to attract foreign investment.
The ministry’s plan over the next years is to encourage foreign investments. The ministry therefore strives to resolve all obstacles facing the existing investors, including reducing duration of issuing industrial licenses, which may sometimes be up to 600 days. In addition, the law of industrial licenses is currently being discussed. The law allows issuing licenses in a period not exceeding 30 days by the Industrial Development Authority only, which extends its control over all industrial lands in order to directly communicate with the ministry.
The strategy also focuses on establishing industrial clusters and providing support to SMEs. Moreover, a furniture cluster will be established in Damietta where a new city will be built. The first phase of this project will be inaugurated in the next few coming months and this city will be an integrated furniture manufacturing city. Moreover, Italian investors were invited to seek there experience to improve quality of furniture manufacturing.
