(MENAFN- Daily News Egypt)
The Ministry of Planning and Economic Development has released a comprehensive report on the targets and investments within the manufacturing sector for the fiscal year 2023/2024.
Hala El-Said, the Minister of Planning and Economic Development, emphasizes the critical role of the manufacturing sector. It stands as a high-priority area within the National Structural Reforms Programme, initiated in 2021. The program aims to diversify the state's productive framework, enhance flexibility, and foster cognitive and technological advancements. These efforts ultimately bolster the international competitiveness of the Egyptian economy.
El-Said highlights several key points about the industrial sector:
High Productivity: The industrial sector boasts remarkable productivity levels.
Labour Absorptive Capacity: It provides employment opportunities for approximately 3.5 million workers, equivalent to around 13% of the total workforce.
Export Capabilities: The sector plays a pivotal role in national exports, accounting for over 85% of total non-oil merchandise exports. In 2021/21, this amounted to approximately $25.
GDP Contribution: The industrial sector ranks first in terms of its contribution to the gross domestic product (GDP), constituting no less than 16% of the total GDP.
Trade Balance: Its robust performance contributes significantly to alleviating structural imbalances in the trade balance.
The report has reviewed industrial investments, focusing on the plan for 2023/2024. The objective is to direct investments of approximately EGP 100 toward the manufacturing sector, representing a 19.6% increase compared to the expected investments for 2022/2023, which amounted to EGP 84. Within the manufacturing sector, non-petroleum industries account for an estimated EGP 79bn, while petroleum industries contribute around EGP 22bn.
Regarding production targets, the Ministry's report outlines ambitious goals. The aim is to elevate industrial production from approximately EGP 3.6trn in 2022/2023 to EGP 4.3trn by 2023/2024, reflecting a growth rate exceeding 19% at current prices. Looking ahead, the plan envisions industrial production reaching EGP 5.74trn by the end of the 2025/2026 period, representing a 15% increase over the corresponding production in the previous year.
The report emphasizes the development of the industrial structure during the medium-term plan. Both petroleum and non-petroleum industries are expected to grow at similar rates, maintaining their relative weights. Specifically, total industrial production at constant prices is projected to exceed EGP 3trn in 2023/2024, rising further to EGP 3.23trn in 2025/2026. Notably, petroleum industries are anticipated to grow more rapidly than their non-petroleum counterparts.
In pursuit of these goals, the plan targets an industrial output of EGP 2.46trn by the end of 2025/2026, compared to EGP 1.83trn in 2024/2025. Additionally, efforts are directed toward increasing the real output of the industrial sector to EGP 1.37trn, up from EGP 1.29trn in 2023/2024.
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