The government is keen on finding urgent solutions to have these
factories up and running, entering the production stage again,” Mahmoud
Eissa, minister of trade and industry, said in a released statement.”/span>
.Currently, there are 1,500 factories across Egypt in various fields
which have been shutdown or stalled production, a media representative
at the ministry told Daily news Egypt .
.According to the statement, the Industrial Development Authority
(IDA) and the Industry Modernization Center (IMC) will be receiving the
applications of the factories within 15 days in order to conduct a
comprehensive inventory of these factories .
.Ismail Al Nagdi, chairman of the IDA, along with Hisham Wagdy,
executive director of the IMC, will be receiving the factories’
applications in the authority’s head office in Cairo and also through
the website of the IDA .
.Both the IDA and the IMC will form a committee to review the
factories’ cases, discuss the reasons behind their closure, and then
provide a detailed report to the minister of trade and industry .
.Alaa Ezz, secretary general of the Egyptian Federation of Industries
told DNE that despite the importance of these factories, many of them
were shut down by banks after failing to pay their loans on time .
.”Abu El Sebaa, one of the major textile companies in Mahalla
governorate was shut down but has been recently among the companies
re-launched; this actually was one of the biggest exporters of textiles
in the country,” said Ezz, who was their at the re-launching of this
specific factory .
.”These companies were shut down due to re-syndication of debt,” he added .
.He also added that the Ministry of Trade and Industry is indeed
planning to work with more factories and discuss the issue with their
banks in order to reschedule loan payments .
.”Unlike banks in the United States, where the system sometimes funds
ideas, the banks in Egypt follow the French system; they look at
collateral – not feasibility of a project and this prohibits growth;
that is why you’ll never see a Bill Gates in Egypt,” said Ezz .
.”These are major factories that employ hundreds of people and
contribute greatly to the economy and industry in Egypt, it is very
important that their issues are worked out,” said Ezz .
.According to Ezz, the factories under review are located all across Egypt and manufacture a diverse range of products .
.Moreover, Eissa pointed out that this decision comes as part of a new
government policy coming from Prime Minister Kamal El-Ganzoury to
support local industries, especially at this “critical” stage .
.”The nation’s economy is going through development and urgent
solutions are needed to solve the problems of stalled or suspended
factories to help them restart again and enter the production stage,” he
said .