Engineer Ahmed Abdel Gawad stresses the need for plan to reduce production costs as Egypt's engineering exports increase in February 2023.
Egypt's Engineering Industry Calls for Regular Release of Production Materials — File Photo
Engineer Ahmed Abdel Gawad, a board member of the Chamber of Engineering Industries, affirmed that the current economic situation is difficult worldwide and that the government's continuation of initiatives to support the industry, such as the EGP 150 billion initiative to support productive sectors at an interest rate of only 11%, is an important step to support the production process.
Abdel Gawad stressed that the release of production materials in engineering goods contributes to the return of regular production processes.
This, in turn, directly contributes to meeting the needs of the Egyptian domestic market and providing national production for export, which contributes to achieving the state's plan to boost exports and achieve $100 billion.
He further called for the regular release of production requirements for the engineering sector as one of the most important productive sectors, especially since it intersects with most developmental sectors. He also demanded the provision of hard currency to import engineering equipment and production lines to inject new production energies through these lines.
Abdel Gawad emphasized the need to work on a plan to reduce production costs, which gives a greater opportunity to be present in new markets with distinctive quality for Egyptian exports.
The first steps to reduce the final cost of the product should be the removal of customs duties on imported inputs and production components, and the provision of incentive packages to attract investments in components that require precise technology and high import costs, in addition to providing accreditation centers.
He explained that the increase in engineering exports begins with reducing costs, increasing local manufacturing depth, and attracting foreign investments to strategic sectors that enter the engineering industries sector and provide industry needs.
The Export Council for Engineering Industries announced that the sector's exports increased by 6.3% in February 2023, reaching $348 million compared to $327 million in the same month last year.
