Head of Engineering Industries Chamber: Developing Local Product Preference System Supports Auto Sector

Engineer Mohamed El Mohandes, head of the Engineering Industries Chamber at the Federation of Egyptian Industries, praised the Ministry of Industry's moves to reactivate and develop the local industrial product preference system in government contracts. The sector awaits clear executive steps. This move carries significant weight for supporting national industry and deepening local manufacturing, especially with ongoing efforts to refine implementation mechanisms to match the industrial sector's needs.

Reforming the Technical Secretariat of the Local Product Preference Committee

El Mohandes considered that reforming the technical secretariat of the Egyptian industrial product preference committee, with a representative from the Federation of Egyptian Industries, represents a positive step. It enables transferring manufacturers' visions and practical challenges into the system's development process. The goal is clear. This helps establish more transparent, realistic, and applicable rules.

The head of the Engineering Industries Chamber stated that reactivating the committee, alongside reviewing and developing the legislative and executive frameworks of Law No. 5 of 2015, represents an important response to manufacturers' demands. The difference will show on the ground. These efforts address several challenges that emerged in recent years when applying the local product preference system.

Clear Rules for Calculating Local Component Ratio

El Mohandes explained that mechanisms for calculating and proving the local component ratio top the files needing further development, along with setting clear rules for applying preference to Egyptian products in government tenders and contracts. The industrial sector's participation in drafting and refining implementation mechanisms would enhance the system's efficiency. It ensures its rules align with different industries' nature and companies' needs, achieving the fundamental goal of supporting local products and boosting their competitiveness.

Executive details remain the decisive factor. He emphasized that stable government demand for Egyptian products acts as a key driver encouraging companies to inject new investments and raise local manufacturing ratios.

Government Demand... A Key Investment Catalyst

A manufacturer directing investments toward producing local components or upgrading production lines needs a clear vision regarding product marketing opportunities. Government purchases and contracts can play a pivotal role in creating this demand and stimulating private sector expansion. Egypt's automotive sector awaits this system's activation to attract new investments in components manufacturing — a step that would reduce import bills and strengthen the local market's competitiveness.