Egyptian business community leader warns of long-run negative impact of trade deficit on exchange rate



Sun, 30 Oct 2022 - 02:25 GMT


Sun, 30 Oct 2022 - 02:25 GMT

FILE - Containers in a seaport - REUTERS

FILE - Containers in a seaport - REUTERS

CAIRO – 30 October 2022: Head of the Export Council for Engineering Industries Sherif al-Sayad warned in a TV interview Saturday that if the current trade deficit, standing at $40 billion, continues to exist, Egypt will have to devalue the currency every 4-5 years.


The businessman showcased that Egypt's exports, including petroleum ones, per annum are worth $40 billion, while the value of imports ranges between $75-$80 billion.  


Member of "Start" initiative Aya Hossam El Din stated in a TV interview Saturday that the number of industrial projects launched within the initiative is 64, and that they are concentrated in the sectors of home appliance, water treatment, and petrochemicals among others.


Hossam El Din pointed out that the initiative is estimated to substitute products that used to be imported at a cost of $16 billion. She added that a lab has been established to assess the quality of products manufactured locally, ensuring they meet international standards.


The main features of the initiative are tax exemption for five years, and offering lands for investors in the leasing system.


In a similar context, Board member of the Federation of Egyptian Industries (FEI) Kamal el Desouky said that President Abdel Fattah El Sisi’s decision to grant the "golden license" to manufactures is very important.


In statements to DMC TV station on Saturday, he added that the industry sector is the locomotive of development in Egypt and that giving more attention to industry will push forward the development wheel.

He also noted that the state requires developing the industrial licenses' system as soon as possible in order to facilitate measures for investors.

Earlier, President Sisi had directed to grant the "golden license" to all investors for three months.

Sisi’s directives came at the inauguration of the first international forum and exhibition for industry, which lasts for three days at Al Manara International Conference Center in New Cairo.



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