Industrial sector weighs up to 20% of growth rate: Min.

CAIRO – 10 March 2019: Minister of Planning Hala el-Saeed emphasized the importance of the industrial sector and its main role in economic development, representing a relative weight of up to 20 percent in the current growth rate.

Said also stressed that the current trend is directed towards deepening the industry, clearly with the replacement of imports, and developing industrial exports as well as the broader and comprehensive concept of exports of goods and services to increase the contribution of exports to GDP.

This came during the participation of the Ministry of Planning, Follow-up and Administrative Reform, represented by Assistant Minister of Planning for Follow-up Affairs Gamil Helmy, in the workshop of the Academy of Scientific Research and Technology under the title "How the Industry and Export Sector is an Engine of Growth" organized by the Economic and Administrative Sciences Research Council In the academy.

The minister pointed out that the target is always to make a positive contribution to the net exports in economic growth until net exports and investment constitute about 70 percent of economic growth.

“The ninth objective of sustainable development, 'Industry, Innovation and Infrastructure', aims to establish a reliable and sustainable infrastructure and to enhance inclusive and sustainable industrialization, significantly increasing the share of industry in employment and GDP by 2030,” the minister noted.

She further confirmed Egypt’s keenness on supporting the industrial sector by encouraging small and medium-sized enterprises, and even micro-enterprises, which may contribute in the achievement of many advantages, including reducing unemployment rates and increasing employment rates, as well as supporting local industries, which reduce the volume of imports in exchange for high rates of exports.

The minister noted that there is a trend to enhance the competitiveness of the industrial sector where the target is to increase the rate of industrial growth from 6.3 percent in 18/2019 to 10 percent in 21/2022.

For his part, Helmy reviewed the indicators of sustainable development in the industry within the achievements of the first half of the current fiscal year 2018/2019, which included achieving the goals of the ninth goal of the international goals and industry.

He explained that the government's work plan includes two clear programs, one related to the deepening of industry and replacing the imports and the other program for the development of industrial exports, pointing out that these commodity exports include commodity and service exports, including exports of the telecommunications, tourism and education sectors to ensure optimal utilization of the productive capacities of the state.

On the economic development level, Helmy clarified that the strategy of sustainable development focuses on the importance of the industrial sector, pointing out to the importance of the process of updating the vision that is currently underway to ensure that all the strategies implemented by the state are consistent with the UN goals and indicators of sustainable development.

He indicated that when linking all development programs for the industrial sector, they cross-cut on all objectives where the industry can contribute to the eradication of poverty in the implementation of programs for industrial development.

Helmy pointed to the development program of Upper Egypt, to which the state attaches great importance in terms of industrial areas and complexes.