(MENAFN- Daily News Egypt) Hassan El-Khatib, Minister of investment and Foreign Trade, emphasised that the food industry sector was one of the most important production and export sectors in Egypt's national economy. The sector's investments exceeded EGP 500bn, with over 7,500 formal establishments operating in the field, creating more than 7 million jobs and contributing approximately 14% of Egypt's total exports.
El-Khatib's remarks came during his speech at the inaugural conference for food industry exporters, attended by Hany Berzi, Chairperson of the Food Export Council, along with many representatives of companies operating in the food industry sector.
El-Khatib noted that the conference was a valuable opportunity to discuss ideas on export growth and the policies and procedures that can contribute to achieving an annual export growth rate of over 20%. He praised the conference's agenda, which addresses the key components of any policy aimed at creating real and sustainable growth in Egypt's exports.
He explained that enhancing exports, especially in goods, was one of the core pillars of the Egyptian government's strategy for achieving sustained economic growth. This strategy focuses on fostering investment, manufacturing, and job creation as the foundation for increasing exports.
El-Khatib highlighted that the food industry sector has shown significant export growth over the past five years, despite various economic challenges. It was also one of the sectors where local components play a crucial role in production. Investment in the food industry sector continues to witness growth.
The minister stated that achieving a leap in Egypt's exports, targeting $140bn, was closely linked to a corresponding and proactive surge in production investments, particularly in manufacturing. He noted that the current production capacity can only support exports between $40bn-50bn. Therefore, reaching the goal of $140bn in exports requires an additional $40bn-50bn in production investments, enabling the establishment of industrial sectors that the government was focusing on, especially in intermediate and supporting industries.
El-Khatib stressed that achieving rapid investment growth depends on formulating investment policies that encourage private sector involvement and innovation, particularly in intermediate and investment industries. Furthermore, adopting clear policies and procedures to promote exports was essential. He pointed out that export promotion inherently aims to replace imports by producing according to global standards and economies of scale, with domestic demand being part of that equation.
He also noted that there would be a review of all current burdens on the industry, to reduce and simplify procedures to stimulate more investments and production. This will be followed by the announcement of a 10-year investment and trade policy document for Egypt. The document will outline the government's vision and related policies, including monetary, financial, and trade strategies, to restore local and foreign investors' confidence in the government's industrial and production policies. The ultimate goal was to increase investments in various sectors by $40bn-50bn.
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