Interview with Her Excellency Dr. Nevine Gamea, Minister of Trade & Industry for Khoyout Magazine

Special Governmental Care of the Future of Egyptian Textile Industries: “A Promising Future”

• Commitment to provide export support for all exporters to penetrate global markets while prioritizing Africa
• Taking a number of exceptional and supportive measures together with economic decisions to limit the negative impact of the spread of COVID-19 virus on national economy

This has not been the first time that “Khoyout” magazine interviews a key Egyptian official to discuss topics pertaining to textile industries; however, it is the first time that we converse about the subject matter with her Excellency, Minister of Trade & Industry. Her excellency tackled the issue based on the future plans, information, statistics and the vision she has in place that the ministry holds to support the industry to make a fundamental difference that will positively shape the future of the industry in Egypt.  The interview was peculiarly interesting because it was based on concrete information that unraveled the vision of a true leader, who has a successful history in managing the portfolio of small and medium scale projects, through which she achieved positive and desirable results.  It is her Excellency, Dr. Nevine Gamea, the Minister of Trade & Industry.  Her Excellency is well informed and fully in tune with the problems that industry and trade face in Egypt and accordingly, she has a vision, future plans and a strategic methodology in place to equip the ministry to face challenges.  Generally speaking, the interview radiated with positivity and it clearly had reassuring messages that will support the industry and all those working in the field.  On her last notes, she confidently stated that it has nothing but a promising future.  Have a read to know all about the exclusive interview, where “Khoyout” has been exceptionally keen to share with its readers all the detailed information of the interview to give them insights on the industry. 

At the beginning, Her Excellency Dr. Nevine Gamea, Minister of Trade & Industry confirmed that the political leadership expresses a genuine and profound interest in the industry portfolio, which presents a golden opportunity to revive the role of the government represented by the Ministry or Trade & Industry to achieve comprehensive economic development, in which reforming and upgrading the industrial sector will be a supportive measure.  Accordingly, the government is exerting tremendous efforts to support local industries, attract direct foreign investment, transfer knowledge, exchange advanced industrial expertise, in addition to introducing and settling in a number of new industries in the Egyptian market and last but not least, developing flexible policies that attract investment.  Furthermore, the minister expressed that the ministry is inclined towards establishing industrial zones, which represent a fundamental cornerstone to increase productivity and contribute to substituting exports with locally made products, which is something that Egypt enjoys a number of attractive competitive advantages for. Consequently, the ministry focuses on textile industries, in addition to a number of other industries, such as food, engineering, leather, furniture and petrochemicals, topped with traditional Egyptian handicrafts that reflect the nation’s rich heritage product portfolio.

Imports’ Bill

In the efforts to decrease our imports’ bill and replace imported products with locally manufactured substitutes, the minister confirmed that the ministry is targeting increasing the dependability on Egyptian made products, supporting food industries and integrating advanced technology in Egyptian industries.  All this will be carried out under the umbrella of implementing profound programs that encourage and fully support local manufacturing to contribute to decreasing our imports and replacing them with local alternatives.  Great opportunities await Egyptian manufacturers, in order to depend mainly on local products and limit importation.  The minister highlighted that the ministry currently coordinates with local manufacturers to encourage them to produce, manufacture and supply the Egyptian market with its needs by integrating national industrial chains and creating solid roots for local industrialization.  Moreover, the ministry is working on upgrading and increasing the competitive edge of Egyptian products to supply the local market with its needs and decrease the demand on importation.  Furthermore, the ministry is working towards doubling Egyptian exports to international markets, where the ministry depends in its plan on a number of pillars that aim at enhancing the competitive advantage of Egyptian products by improving the infrastructure of the quality and specifications of these goods, which is in favor of upgrading our local commodities. 

COVID-19 Challenge

Dr. Nevine Gamea mentioned that, since the start of the spread of COVID-19 virus, the ministry implemented an immediate action plan to deal with post COVID-19 crisis to face its repercussions on the Egyptian economy in general and on the industrial and foreign trade sectors in particular, which had inevitably suffered from this world crisis.  Consequently, the ministry took a number of exceptional measures and radical economic decisions to limit the negative impact of the spread of the virus on the local economy.  Besides that, the ministry exerted great efforts to create a conducive industrial business environment to overcome the challenging obstacles that faced businessmen, which successfully included, implementing institutional development & reform, strengthening & enhancing the communication between different business entities and governmental stakeholders, expanding the local market by increasing the competitive edge of local products in both, local & international markets, and last but not least, increase the quality & efficiency of Egyptian products.  This is all coupled with establishing a legislative infrastructure to promote and improve the business environment and climate in Egypt. When it comes to specialized industrial zones, there has been and will always be close monitoring of all the projects that are being implemented under the auspices of the ministry under a clear vision and specific timeframes.

Exportation Support

The minister shed a light on the importance of exporting Egyptian products to African markets.  She expressed that it is a top-notch priority for Egypt in the time being, where Sudan is marked on the top of the list.  It goes without saying that there are many challenges to export to Africa, that’s why she held a number of meetings with export councils to discuss these challenges and address them.  Unfortunately, throughout COVID-19, more challenging obstacles arose and the ministry is working relentlessly on overcoming them.  The minister stated that supporting Egyptian exports to African countries is a priority, in addition to opening up new markets and shopping malls, but regrettably, the spread of COVID-19 slowed down the momentum of penetrating these markets.  She sincerely hopes that with the new year, the world manages to surpass the challenges of Corona and that Egypt expands its exports to cover African markets.  During the period between January and October 2020, the ministry had supported the Egyptian exports’ portfolio, among which is textile industries with a budget of 8 billion and 400 million Egyptian pounds.  She mentioned that the ministry has always been and will always be keen to provide financial support for manufacturers, in order to facilitate the cash flow, which will in turn ensure the continuity of the production process to fulfill labor-related dues and commitments.  Over the past few days, she had closely monitored all the financial support granted for all those in the field and found that 12 billion Egyptian pounds were designated for that purpose from the total of 20 billion Egyptian pounds.  She was particularly keen to support the textile industry. 

Development File

Her Excellency stated that the political leadership under the guidance of the Egyptian president Mr. Abel Fattah El Sissy is particularly keen on the industry portfolio, which is a great push for that promising sector to boom and flourish, since it is considered to be the core of economic development.  The ministry is looking forward to support programs that enhance and strengthen local manufacturing to positively and influentially contribute to reducing Egypt’s trade balance deficit.  Moreover, field visits have been planned to manufacturing sites to connect with investors to find solutions that overcome pressing challenges and improve the system of services presented to business men to increase production and exportation rates.  The ministry exerts tremendous efforts in collaboration with the rest of the ministries and concerned bodies to strengthen Egyptian industries, attract more direct foreign investment, exchange know-how & advanced industrial expertise, expand establishing industrial zones, and implement the presidential initiative to employ youth by providing them with licensed and equipped factories with reasonable space to run diversified micro targeted businesses. 

Industrial Integration

When it comes to industrial integration and the absence of investment, the minister shed a light on the importance of coming up and implementing a strategic plan to encourage and direct investors to specific industries to be able to fully realize their potential in Egypt, where production integration is imperative.  Dr. Nevine Gamea said that achieving productive integration between different national industrial sectors is crucially important and the ministry is looking forward to implement it by enhancing the competitive advantage of local products and achieving full integration between national production entities to positively contribute to the basis of industrial integration in Egypt.  This could be achieved by settling and supporting a number of Egyptian industries in the local market.  Achieving integration between different Egyptian supply chains will facilitate industrial production needs.  Under this umbrella, the ministry coordinates with the private sector the pillars upon which promoting local industries is founded to promote and strengthen the competitiveness of Egyptian local products in both local and international markets.  This will be carried out by connecting Egyptian manufacturers with the aim of exchanging expertise and actively implementing Egyptian value chains.   

At the same time, the ministry is keen to provide advanced industrial technologies for local industries to enable Egyptian products to compete on the local and international fronts.  The minister revealed this when discussed areas of improving and upgrading local industrial zones and operating factories digitally with advanced technology, in addition to energy saving, safety precautions and environmental protection for sustainability.  She also mentioned that the ministry is focused on providing training programs for the labor force in the industrial sector in the technical and administrative fields to keep up with the latest applied administrative and technical global developments.  This will take place through the industrial modernization center and the department of sufficient productivity. This was shared in a memorandum of understanding signed by international companies to transfer their industrial expertise to local industries.  Siemens was among these global companies. 

Small & Medium Scale Industries

Since most of the industrial establishments of textile industries represent the small to medium scale sector, Dr. Nevine Gamea, Minister of Trade & Industry affirmed that developing the small and medium scale industries’ sector is an in integrated component of the Egyptian governmental strategy to develop the sector.  She explained that it is pivotal to accomplishing sustainable development under “Egypt’s Vision 2030”.  There is great cooperation between all governmental entities & ministries to develop the small, medium and micro scale industrial sectoral body to achieve total & integrated reform for that promising sector.  This will be carried out by presenting holistically integrated solutions and providing facilities & services to upgrade the sector, in addition to conducing a supportive environment to motivate Egyptian youth to be self-employed and build small and micro scale businesses to positively contribute to developing national economy.

The ministry had done great efforts and had taken up initiatives to promote and upgrade the sector of small, medium & micro scale industries. This included expanding offering technical support services together with implementing the national bank initiative that was launched in 2016 to fund small and medium industries with a total value of 200 billion Egyptian pounds with only 5% interest rate.  Moreover, there has been a series of legislative reform laws that grant licenses to industrial zones, and offer them bonuses and exceptions that suit their nature.

Her excellency added that within her authority as the executive president of small, medium and micro scale industries’ sector, she highlighted the new law pertaining to developing this industrial sector that has been approved by the Parliament and legislated by President Abdel Fattah El Sissy.  The law included a number of pivotal foundations that cover upgrading and agreeing upon common definitions and understandings of small, medium & micro scale industries, and putting in place flexible, new & advanced mechanisms to facilitate funding business owners in this field and entrepreneurs.  It also included expanding offering financial and non-financial bonuses for that chosen sector and putting in place direct monitoring bodies to ensure desirable results.  Additionally, putting a mechanism to support and rectify the status of non-official businesses to encourage them to transform to the official sector.  Last but not least, upgrade and facilitate all the processes that involve registration, granting permits and operational licenses to establish small, medium & micro scale businesses. 

Labor Training

The Minister of Trade & Industry highlighted the importance of holding technical and professional training, which she considers a fundamental pillar to provide skilled and highly qualified labor who can fulfill the needs of both the industrial and service sectors in Egypt.  To promote and support that, she explained that the ministry had adopted a new vision to upgrade the existing system by collaborating with development partners such as, the national project to reform technical and professional training TVET and the funds received from the EU to reform and upgrade a great number of technical schools and professional training centers to provide national skilled labor.  She also explained the importance of receiving support from the private sector in developing professional training centers that belong to the ministry and upgrading academic curriculums & training programs. 

Furthermore, the ministry aims at upgrading the existing systems and developing innovative methods that can successfully support vocational training and technical education to deliver on the outcomes of these programs and match the market needs.  This will be done by actually hiring the trainees in real life jobs across different industrial and productive sectors to perform and implement what they learned. 

Commercial Representation

Dr. Nevine Gamea highlighted that commercial representation is key in implementing the ministry’s visionary plan on both regional and international fronts.  It aims at increasing Egyptian exports to international markets and minimizing imports.  In addition to this, it will contribute to attracting more investment opportunities in Egypt.  Currently, the ministry is working on enhancing the role of commercial offices abroad, especially when it comes to surveying & closely studying external markets, liaising on with local importers, promoting Egyptian products and providing commercial data for importers and exporters.  Young leadership figures have been appointed to head the commercial representation body, besides restructuring the commercial attaché councils under the umbrella of total reform plan that the ministry has been vigorously implementing to enhance and reinforce the role of commercial representation, since it is considered to be a diplomatic commercial arm for Egypt all around the world.

Industrial Fairs

Regarding the participation of Egyptian manufacturers in local and international trade fairs, her excellency mentioned that upgrading local trade fairs and increasing the participation in international fairs is among the priorities on the ministry at this stage.  She explained that these fairs represent a fundamental pillar and an important tool to upgrade the quality of Egyptian exports and enhance the presence of Egyptian made products in the local market, which in turn increases Egyptian products’ competitive advantage in both local and international markets.  

The great news is that the ministry currently has an integrated and unified body, under which all export-related entities exist under one roof, which is represented in the “Export Development Council”.  The council is aimed at increasing Egyptian export rates on a strategic level by promoting exports.  This will be achieved through using online digital marketing, participating in international trade fairs, sending commercial delegations abroad, organizing workshops and roundtables to connect businesses and last but not least, building and upgrading exporting capacities through trainings and providing technical support for exporters. 

The General Council of Exhibitions & Conferences, which falls under the auspices of the ministry has been doing an influential role in orchestrating all of the above by organizing a number of annual trade fairs, whether they are general trade fairs or specialized themed ones to facilitate and attract the participation of Egyptian companies in private fairs and offering them the necessary permits and licenses.  Moreover, it works on sending representatives of the council to participate in these fairs.  This is timed with the governmental plan to cope with and survive the COVID-19 virus and slowly but surely return to holding commercial and trade activities to revive local fairs while taking the necessary precautions.  With regards to international fairs, they are closely tied to and in tune with global decisions to slowly return to hosting economic activities.  The country is working on establishing a digital marketing platform to promote Egyptian products across different global markets.

The minister confirmed that hosting virtual online trade fairs has become more important than ever, especially within the upcoming months.  It will be a model that many countries will depend on to promote their products to revive their economies, especially with the current circumstances that unfortunately had stopped conventional trade fairs.

Promising Change

The minister expressed that in spite of the negative consequences of the spread of the COVID-19 virus, great opportunities still await Egyptian manufacturers to depend on local industries and limit importation.  She stated that the ministry is currently collaborating with the industrial community to encourage them to manufacture all the needed requirements to promote local manufacturing and fulfilling the local industries’ needs.  This will be done by creating networks among national supply chain entities and deepening local manufacturing.  There is a great opportunity that lies in having a number of international factories that ceased to operate, since it presents a great opportunity to export Egyptian products to these markets and accordingly increase Egyptian exports.  She actually sees this crisis as an opportunity rather than a challenge. 

A Promising Future

The minister only sees great opportunities that await the future of industrialization in Egypt. She reassured that Egypt is capable of accomplishing an industrial leap and enhance its economy throughout the upcoming period in light of what the country enjoys in terms of benefits.  This lies in Egypt’s conducive industrial and investment climate, which promotes growth under the umbrella of the decisions that the country has taken to gain the trust of different foreign governments and entities, which will positively impact the Egyptian economy.

This will only happen by consolidating all the governmental efforts together with the private sector efforts to upgrade Egyptian industries.  The government itself, does not actually manufacture, but its role lies in creating a healthy environment in which businessmen investments can be made by facilitating all the needed procedures and processes.  Supporting them to open new markets for their exports and facilitate any obstacles that can hinder the local industrial progress must be done. 

At the end of her interview with “Khoyout”, her excellency said that ever since she assumed her role as a Minister of Trade & Industry, she has been reaching out to members of Egyptian Industrial Unions, Federation of the Chamber of Commerce and Export Councils to discuss and collaborate on all the topics pertaining to trade and industrial portfolios to put in place a set of programs that can positively upgrade and enhance the local economy’s growth rates.

I would like to shed a light on the national role of industrial businessmen, who has only been keen to commit to steering the wheel of production, while keeping the workforce, since the beginning of the COVID-19 virus.  She confidently sends out an optimistic message to stay positive, as the future holds golden opportunities for Egyptian trade and industries.  “Everyone is unified around achieving Egypt’s best interest, which unites every official under the same vision”, her excellency concluded her interview on these promising notes.