Egyptian Prime Minister Mostafa Madbouly said on Sunday that the state is securing all necessary financing to provide raw materials and production requirements, asserting that the “wheel of national production will not stop” despite current regional military escalations.
The Prime Minister stated during a meeting with the heads of industrial and commercial chambers that Egypt is facing “exceptional circumstances” following the military escalation in the region. He noted that these developments have created an “unprecedented challenge” in the energy sector that reflects on all countries in the area.
“The goal of the Egyptian state at this stage is to work on stabilising markets and maintaining price balance,” Madbouly said. He added that the government is seeking to prevent significant increases in inflation rates to avoid an impact on interest rates during this period.
The meeting was attended by Sherif Farouk, Minister of Supply and Internal Trade; Mohamed Farid, Minister of Investment and Foreign Trade; Khaled Hashem, Minister of Industry; Hani Mahmoud, First Deputy Chairman of the Federation of Egyptian Chambers of Commerce; Ahmed El-Wakil, Chairman of the Federation of Egyptian Chambers of Commerce; Mohamed Zaki El-Seweidy, Chairman of the Federation of Egyptian Industries; Amr Abu El-Eyoun, Second Deputy Chairman of the Federation of Egyptian Chambers of Commerce and head of the Assiut Chamber; and Mahmoud Sarg, Deputy Chairman of the Federation of Egyptian Industries.
The Minister of Investment and Foreign Trade stated that Egypt entered the current crisis in better conditions than previous instances. He confirmed that the state is continuing economic reforms, including expanding the role of the private sector, organising markets, and supporting various production sectors.
Ahmed El-Wakil, Chairman of the Federation of Egyptian Chambers of Commerce, said that a flexible exchange rate has helped absorb many shocks. He noted that the abundance of supply is the most important factor in market regulation, adding that current stocks of various commodities are at “reassuring levels.”
Mohamed Zaki El-Seweidy, Chairman of the Federation of Egyptian Industries, said that the government’s “positive messages” regarding the availability of raw materials would help “thwart any attempt at monopoly or the hiding of goods.” He noted that investments continue to flow into Egypt due to its stability and the implementation of flexible exchange rate policies.
Heads of the industrial and commercial chambers stated that markets are currently witnessing a surplus of raw materials and the availability of foreign currency. They noted that medicine stocks are sufficient to cover several months. However, they highlighted that regional events have led to increased costs for raw materials at the source, as well as higher shipping and fuel costs, which have impacted commodity prices.
Madbouly concluded the meeting by directing the formation of a working group comprising relevant ministries and the two federations to monitor markets and resolve any emerging problems. He reiterated the government’s commitment to ensuring factories and production sites operate at their highest efficiency, noting that current monetary policy is on a path “praised by everyone.”
