Promoting Industrial Growth and Encouraging Foreign Direct Investment in Egypt
Textile Industries
Responsible Entities
- Access to affordable finance.
- Encourage the banking sector to provide low-cost loans and short-, medium, and long-term finance to the industry.
- Review the status of the distressed factories and explore different mechanisms, including creating a special fund, that will help them operate at maximum capacity.
- Outdated machinery and equipment that are used in the different stages of the textile manufacturing process.
Responsible Entities
Date 6/30/2020
- To improve quality and increase production, extend assistance and incentives to factories that import new machinery and equipment for use in the different processes (spinning, weaving, dyeing, printing, and finishing). Grant textile factories a 50% tax exemption for 5 years, and ready-made garment factories a 25% tax exemption for 3 years.
- Exempt existing factories that expand operations and new textiles factories from taxes for 10 years.
Responsible Entities
Date 6/30/2020
Responsible Entities
Date
- Weak linkages among the key manufacturing processes—spinning, weaving, dyeing, printing, finishing, and other upstream industries.
Responsible Entities
Date 6/30/2020
- Attract domestic and foreign investors in the textile industries, whether in single projects or textile cities.
- Encourage the development of textile cities, focusing on governorates in the Delta and Upper Egypt to boost their development.
Responsible Entities
Date 6/30/2020
Responsible Entities
Date
- Cotton-relevant Agriculture Policy
Responsible Entities
Date 6/30/2020
- Expand the cultivation of short- and medium-staple cotton instead of importing them.
- Continue with cultivating long-staple cotton, taking into account the quantity that can be exported and the needs of the local industry.
- Encourage investment in ready-made garment industries that use long-staple cotton.
- Allow cotton imports from all countries and repeal the decision that limits importing to specific countries.
Responsible Entities
Date 6/30/2020
Responsible Entities
Date
- The Industrial Control Authority has weak capacities to carry out its functions, including the calculation of the waste percentages for manufacturers.
Responsible Entities
Date 6/30/2020
- Develop and modernize the Industrial Control Authority and provide it with updated electronic systems that can assist with calculating the waste and damage percentages to ensure fairness and equity in treating exporters.
Responsible Entities
Date 6/30/2020
- The processing time for export rebates and VAT refunds is lengthy.
Responsible Entities
Date 6/30/2020
- Expedite the processing of refunds and set a timeframe, not to exceed 90 days from the time all documents are submitted, for disbursing the funds; export assistance should be linked to the percentage of domestic value added in the given export, in accordance with the rules of Egyptian origin.
Responsible Entities
Date 6/30/2020
Responsible Entities
Date
- The high production costs; the natural gas prices are particularly high despite the fact that textile industries are labor-intensive industries; the gas producing companies deal with this issue in a high-handed manner.
Responsible Entities
Date 6/30/2020
- Review natural gas prices; charge the textile industries the same natural gas price charged to brick factories.
- Reduce the price of water supplied to the textile industries; water is an essential component in all the different manufacturing processes—spinning, weaving, dyeing, printing, and finishing
Responsible Entities
Date 6/30/2020
Responsible Entities
Date
- Labor shortage and inadequacy of the industrial training offered in technical and vocational education and training institutions.
Responsible Entities
Date 6/30/2020
- Link enrollment in industrial technical schools to the needs of industries.
- Make available training centers and specialized industrial technical schools in all industrial areas; ensure that the schools have appropriate departments that are aligned with the needs of the industries in the area, and the needs of the geographic area in general.
- The Micro, Small, and Medium-sized Enterprises Development Agency (MSMEDA) should expand the provision of training through its training centers.
- The Textile Industries Chamber and the training centers should collaborate and coordinate their efforts with regards to the design of the centers’ training policy and programs to ensure that factories have access to skilled labor.
- MSMEDA should coordinate with the Textile Industries Chamber to make available loans to support the textile industries; MSMEDA is the best fit for this vital role, especially after the amendment of its governing law.
Responsible Entities
Date 6/30/2020
Responsible Entities
Date
