Egypt forms committee to address customs disparities, strengthen local industry

Daily News Egypt
4 Min Read

Minister of Industry and Transport and Deputy Prime Minister for Industrial Development Kamel Al-Wazir has announced the formation of a committee to investigate harmful customs disparities affecting local industries and propose corrective measures. The committee will be chaired by the Ministry of Investment and Foreign Trade, with the participation of the Ministries of Industry and Finance.

The announcement came during the 35th meeting of the Ministerial Group for Industrial Development, which brought together several ministers, representatives of government bodies, and the Egyptian Federation of Tourism Chambers.

During the meeting, participants discussed ways to prioritise locally manufactured products in the tourism sector, particularly buses. Al-Wazir stressed that the growth of domestic industry depends on strong local demand and reduced reliance on imports, provided that Egyptian products meet national and international standards.

The Egyptian Federation of Tourism Chambers was tasked with submitting a list of imported products and their specifications to the Ministerial Group. The list will be shared with the Egyptian Federation of Industries to explore opportunities for collaboration with local manufacturers or encourage domestic production.

The meeting also reviewed a proposal from UK-based Polar Hydro to invest $2.4bn in a free-zone facility in Giza to recycle solid household waste into fuel and organic fertilisers for both domestic use and export to Europe. Al-Wazir confirmed that the project would support safe waste disposal, create jobs, and produce value-added products. He directed authorities to expedite approvals and accelerate construction. A follow-up meeting between the Giza Governor, the CEO of the Waste Management Regulatory Authority and the company is planned ahead of the next session.

Additionally, the meeting discussed transferring a 70-feddan plot in Qalyub’s Slow Road area to the General Authority for Industrial Development (IDA) for industrial purposes, along with proposed expansions to the industrial zones in Gamasa and Kom Abu Radi—spanning 141.5 and 370 feddans respectively. Officials agreed to study cooperation protocols between local stakeholders and the IDA to develop these areas as fully integrated industrial zones that meet investors’ expansion needs.

The Ministry of Industry also presented a study on the status of Egyptian long-staple cotton over the past two decades, including cultivated areas and productivity per feddan. Al-Wazir instructed all relevant ministries and agencies to prepare recommendations for the next meeting.

Participants reviewed several complaints related to automotive glass, medical supplies, electric vehicles and other sectors, highlighting instances where customs disparities result in higher tariffs on finished products than on raw materials and inputs, creating distortions that disadvantage local manufacturing.

The meeting further addressed the handover of water, sewage and electricity infrastructure, previously executed by the IDA, to affiliated utility companies responsible for operating and maintaining the facilities in industrial zones in Qena and Sohag. This is part of the Upper Egypt Local Development Programme, which includes 13 industrial complexes under the presidential youth employment initiative. Al-Wazir urged swift implementation to preserve the infrastructure and recommended the establishment of investor associations in industrial zones to manage maintenance, security and service fees.

Factories producing industrial wastewater must also install treatment units before discharge to protect the environment and associated infrastructure, he noted.

Finally, the meeting reviewed a proposal from UK-based Blue Sky, which operates two factories in the 10th of Ramadan City producing and exporting fresh fruit. The company plans to develop a new 10,000-square-metre refrigerated storage facility. The Ministry of Housing, Utilities and Urban Communities was directed to provide full support in allocating suitable land for the project.

 

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