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00:00 In order to strengthen exports and reduce importation and limit the lack of a commercial balance,
00:06 the Egyptian government is trying to expand production and increase local content
00:12 with a number of industries, mainly chemical and engineering, as well as pharmaceutical, medical and fabric.
00:18 This is through a plan aimed at providing tax and tax incentives and different investment advantages for these sectors,
00:26 which will ensure the increase in production and the stabilization of local industry.
00:30 The percentages will be gradual.
00:34 If we can reach 30-40% in the next period and then gradually reach 50-60%,
00:42 this gradual growth will help us to not be in a hurry in the know-how of the Egyptian product,
00:55 and ensure a high quality level that allows us as Egyptian exports and products to achieve a high quality and competitive level.
01:08 The government's efforts to stabilize local industry and increase the percentage of local content in some industries to 40%
01:15 came after years of great dependence on imports, which is one of the main reasons for the currency shortage in Egypt,
01:22 including the recent government measures, including the limit of import and dependence on local products,
01:28 in reducing the import rate by $13 billion in 2023 to reach about $83 billion.
01:37 Today, I import at a rate of 80 billion dollars, despite all the restrictions imposed by the government to reduce the import rate.
01:47 But today, I have few exports, so there is a big gap between exports and imports.
01:55 The shortage is temporary.
01:57 When will I say that I have a strong manufacturing power that can meet the needs of local consumption
02:05 and has the ability to cross to foreign markets to reach the Egyptian exports of more than $100 billion?
02:12 This is aimed at increasing the annual export growth rate by a percentage of 20% to reach $145 billion in 2030.
02:23 Increasing production and deepening local manufacturing are the Egyptian government's ways to reduce the import rate
02:30 and reduce the shortage in the trade balance, which is a goal that is sought by the government by providing investment barriers in various sectors.
02:38 Farouk Youssef, CNBC Arabia, Cairo.