In an interview with “MEO”, Engineer Mohammed Al-Morshdy, a deputy chairman of small and medium sized projects in the House of Representatives asserted that, he and some members in the parliament submitted a request to amend the law to be a legislation for every project all over Egypt, because it is very important to enact a unified law responsible for small and medium sized projects to have its share in the development. “It is a good approach from the ministry of Trade and Industry to target the industrial zones for spinning & weaving in some cities. It reflects on enhancing the quality of the small and medium sized projects, and drives to found specialised industrial zones which are the best and the most successful to support economy, Al-Morshdy referred that the existence of specialised industrial zones is considered a fundamental factor to solve the economic problems, production increase and imports reduction. Thus, the need for the US dollar will be less, and reflects on the currency rate down. Hence, encourages the investors to inject new investments.” added Al-Morshdy.
We would like to know your opinion about passing a new law for small and medium sized projects?
We have to realise that, the existence of a unified law responsible for small and medium sized projects is very important to make the projects contribute to the development. It is necessary to reconsider the current law; therefore, some parliamentarians including me submitted a request to amend the law to be legislation for every project all over Egypt. This will follow the known legislative steps as the proposed amendment signed by the parliamentarians is submitted to the House of Representative’s chairman; then, he discusses it in a general session which delegates him to take the decision. After that, he submits it to specific committees and a committee of small and medium sized projects to discuss it; Finally, it is presented in a general session.
Why did you submit a proposal to amend the law?
We submitted a proposal to amend the law because there is no strong unified law supports the small and medium sized projects; especially, the constitution stipulates that micro, small, and medium sized projects are one of components of the Egyptian economy.
How do you see the existence of specialised industrial zones?
It is a good approach by the ministry of Trade and Industry to target establishing industrial zones for spinning & weaving in some cities. It helps and develops small and medium sized projects, which considered the most successful support to the economy.
Is there any condition must be applied for the success of these factories?
Yes, every zone must have a specialised company to buy raw materials, imports the products and markets them. That of course helps and encourages the youth to engage in small industries.
What are the purposes for which the production of small sized factories shall target?
The main purpose of founding these small factories shall be using their production in the local big factories or, exporting it. Thus, these specialised zones have to exist as one of mechanisms of the social and economic development.
What is your comment on the controls announced by ministry of Trade and Industry concerning the temporary licenses?
The controls set by ministry of Trade and Industry to give temporary industrial licenses to the existed factories is good and a positive step which activates the decisions of Supreme Council for Investment headed by President El-Sisi and helps a lot of investors to obtain the industrial licenses; especially, they will obtain a temporary industrial register.
Is there a difference in the new controls?
The controls are the same within last periods. However, in the past, the investors would not obtain the industrial registration until the operation license is fully issued. I confirm that, the investor can obtain a temporary industrial registration at present time, which facilitates importing machines and equipment and dealing with the project as an industrial facility. It is a good facilitation for investors and adds a great value to the small-sized projects.
Also, I see the decision of giving the temporary licenses in addition to the control on giving them to the serious investors, will help the investors to obtain the license and facilitate the custom process. That is because it emphasises that the investor will use these machines for the industry, and not for trade.
