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National Industrial Localization Program

The National Industrial Localization Program

The industry sector is a major pillar in the Egyptian government's economic reform plan in terms of the value of its contribution to GDP and the creation of job opportunities, contributing to achieving the Egypt's goals for sustainable development (Egypt Vision 2030). In this context, the Industrial Modernization Center developed the "National Program for Deepening Local Industrialization" with the aim of increasing the competitiveness of Egyptian local products as a substitute for their imported counterparts and supporting production activities in promising industrial sectors.

Scope

The Industrial Modernization Center launched the national program for deepening local industrialization with the aim of increasing the value-added of Egyptian industry and increasing the private sector’s contribution to economic growth by raising the competitiveness and providing a local industrial component as an alternative to the imported component by developing a diversified industrial base of local suppliers that provides a product at a competitive price and of high quality. The program works on two main pillars:

Vertical Integration – through the establishment of sustainable partnerships between industry and suppliers

Horizontal Integration – through supporting collective work between local suppliers to meet necessary needs.

 
 
 
 
 
 
 
 
 

Goals

  • Developing an integrated system for evaluating suppliers
  • Expanding local supplier base.
  • Replacing imported products with local ones.
  • Increasing utilization rates of industrial investments and maximizing utilization of the available production capacities.
  • Upgrading industrial knowledge

Methodology

  • Preparation
  • Participation and Sustainability
  • Monitoring and evaluation
  • Defining the gap
  • Execution

Expected impact on various levels

At the Macroeconomic Level

  • Increasing Egyptian products value-added
  • Securing decent job opportunities
  • Increasing industrial sector contribution to economic growth

At the industrial company level:

  • Raising competitiveness of local supply chains
  • Reducing product / unit cost
  • Reducing dependence on foreign currency

At the local suppliers’ level:

  • Increasing competency and competitiveness of local suppliers
  • Increasing utilization of local manufacturing capabilities
  • Production of new products

Program figures