The situation surrounding the availability of production requirements for companies is expected to be resolved in the near future, according to Mohamed Abdel Karim, the new chairman of the Industrial Development Authority.
With banks refusing to open documentary credits after relying on them to carry out import operations from abroad, a number of manufacturers complained about a severe shortage of production requirements during the most recent period. This had a negative impact on the decline in production capacities and the reduction in the number of workers.
President Abdel-Fattah El-Sisi previously acknowledged that he had instructed the acting governor of the Central Bank of Egypt that the crisis of production supply shortages for factories had ended, with a maximum of two months. He noted that this crisis is a result of the Russian-Ukrainian war’s consequences, which negatively impacted even the major industrial countries, though the government is attempting to minimise its effects on the local market.
Days after announcing his choice to succeed Major General Muhammad Al-Zallat, the former president, as the acting head of the Industrial Development Authority, Abdul Karim made the statements.
Abdul Karim stated that the engineering industries sector is one of the most industrial sectors that exports to other countries, and that the proportion of the local component increases to 80%, on the sidelines of the opening of the “HATS” exhibition, which is organised by the Export Council for Engineering Industries.
The Industrial Development Authority’s chief’s initial remarks on the situation of production supply shortages
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