Egypt discusses giving preference in public procurement to local production

Egyptian-made products account for the largest percentage of those used in the country’s electricity projects


Minister of Trade and Industry Nevine Gamea and Minister of Electricity and Renewable Energy Mohamed Shaker met, on Tuesday, to discuss activating Law 5 of 2015 giving preference in government procurement for locally manufactured products.

The discussions focused particularly on purchases made in projects implemented by the Ministry of Electricity and its subsidiaries.

During the meeting, the two ministers also reviewed the proposed amendments to the law aimed at the effective enforcing of the law.

Shaker affirmed his ministry’s keenness to give preference to local products in the implemented projects, especially as high-quality products are available on the market.

Shaker added, “There are Egyptian companies that have advanced technical capabilities to produce and manufacture equipment, electricity meters and modern products that are of the highest standard, and absolutely not worse than their international counterparts.”

The minister pointed out that Egyptian-made products account for the largest percentage of those used in the country’s electricity projects. Indeed, local component in electrical projects have reached 100% of electricity distribution networks equipment.

Gamea clarified that the law of preference in government procurement for Egyptian manufactured products aims to put the national industry on an equal footing with overseas industries. It also looks to ensure fair competition with imports for projects in the Egyptian market.

The minister stressed the importance of preserving Egypt’s local industry as the powerhouse of the country’s economic development. She noted that it is also one of the most important sectors providing job opportunities in the national economy.

Mohamed El-Sewedy, Head of the Federation of Egyptian Industries (FEI), noted that the law needs to be applied in both public and private sectors’ projects to support local production.

El-Sewedy added, “It is important to oblige Egyptian industries to supply products that conform to international specifications for projects in the Egyptian market.”

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