Egyptian business community leader warns of long-run negative impact of trade deficit on exchange rate – Egypt Today

Egyptian business community leader warns of long-run negative impact of trade deficit on exchange rate – Egypt Today

CAIRO – 30 October 2022: Head of the Export Council for Engineering Industries Sherif al-Sayad warned in a TV interview Saturday that if the current trade deficit, standing at $40 billion, continues to exist, Egypt will have to devalue the currency every 4-5 years.

The businessman showcased that Egypt's exports, including petroleum ones, per annum are worth $40 billion, while the value of imports ranges between $75-$80 billion.

Member of "Start" initiative Aya Hossam El Din stated in a TV interview Saturday that the number of industrial projects launched within the initiative is 64, and that they are concentrated in the sectors of home appliance, water treatment, and petrochemicals among others.

Hossam El Din pointed out that the initiative is estimated to substitute products that used to be imported at a cost of $16 billion. She added that a lab has been established to assess the quality of products manufactured locally, ensuring they meet international standards.

The main features of the initiative are tax exemption for five years, and offering lands for investors in the leasing system.

In a similar context, Board member of the Federation of Egyptian Industries (FEI) Kamal el Desouky said that President Abdel Fattah El Sisi’s decision to grant the "golden