Egyptian engineering exports hit unprecedented rates in 2022, reaching $3.836bn, compared to $3.497bn in 2021, achieving an increase of 10%, according to a press statement released by the Engineering Export Council of Egypt (EEC).
The top winning engineering sectors whose exports grew in 2022 are Machinery by 104%; Metal forming by 98.9 %; Pumps and Engines by 75.8%; Cables by 25.6 %; Electrical and electronic industries by 18.4 %; automotive parts by 13.8 %; Home Appliances by 0.8% and Transportation vehicles by 10.1 %.
Meanwhile, the most important countries receiving Egyptian engineering exports are: The United Kingdom; Ireland; France; Netherlands; Italy; Germany; Spain, Czech Republic, and Malta in Europe while Saudi Arabia; UAE; Kuwait; Jordan; Oman; and Lebanon in Asia and Algeria; Morocco; Libya; Kenya and Ghana in Africa, and finally Argentina, Brazil and USA in the Americas.
EEC Chairperson Sherif El-Sayad said that the council is planning on -not less than- 20% increase in the export rates in 2023 through opening new export markets, especially in Africa, in order to support the country’s strategy to boost exports and reach the goal of $100 bn in the coming years.
El-Sayad stressed that the achieved increase has not met the aspirations yet, but it’s good though, especially in wake of the current global economic turmoil and the significant decline in international trade movement. He pointed out that the increase in the engineering industries’ exports has included most sectors, which is a positive indicator that confirms EEC successful plans that target exports’ growth for all engineering sectors.
El-Sayad noted that EEC activates such as international exhibitions and trade missions will target mainly the African market in 2023 in order to promote exports of various engineering sectors, as the African markets are very promising for the Egyptian products, and it also comes in line with the Egyptian government’s plans to have a strong presence in the African markets.
He moreover pointed to the necessity of working on a strategy to reduce the cost of production, to give a greater opportunity for local products to be present in new markets, thanks to the quality of Egyptian exports. He explained that the first steps to reduce the final cost of the products is to remove customs on imported production inputs and components, and moreover work to provide incentive packages to attract investments in components that need accurate technology and high costs upon importing, in addition to providing accreditation laboratories.
El-Sayad concluded that increasing engineering exports strategy shall include cost reduction, deepening local manufacturing, attracting foreign investments to strategic sectors and providing industry needs.
For his part, Chemical and Fertilizers Export Council, headed by Khaled Abu Al-Makarem, announced a clear increase in the performance of the sector’s exports during 2022, as the value of its exports amounted, for the first time, to about $8.629bn.
The council said that the chemical industries’ exports topped the list of non-oil exports, representing 24% of the total non-oil exports, achieving an unprecedented growth rate of 23% compared to what was achieved during the previous year amounted to approximately $7.033bn.
According to the monthly report of the Council, the performance of exports of its most important export sectors witnessed a remarkable improvement during 2022, as most of the items of chemical industries exports achieved a clear increase, perhaps the most prominent of which is fertilizer exports, by an increase of 42%, to reach a value of $3.389bn, compared to about $2.390bn in 2021. Plastics exports increased by a slight rate of 1%, reaching a value of $2.461bn In 2022, compared to $2.428bn in 2021. Meanwhile, exports of inorganic chemicals increased by 105%, bringing the total value of their exports to $1.316bn, compared to about $640.66m in 2021.
Additionally, exports of inks and paints increased by 23%, reaching a value of $291.59m, compared to around $237.47m.
Various chemicals exports increased by 25%, reaching $267m compared to $212.69m and glass products increased by 13%, amounting to $231.7m compared to $205.5m.