the research and innovation system in egypt - ARTI Puglia
the research and innovation system in egypt - ARTI Puglia
the research and innovation system in egypt - ARTI Puglia
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2.4. Recent Industrial Programs<br />
2.4.1. The one thous<strong>and</strong> factories program<br />
The program which will been carried out dur<strong>in</strong>g 2006-11 aims at encourag<strong>in</strong>g <strong>the</strong><br />
partnership between <strong>the</strong> private sector <strong>and</strong> <strong>the</strong> bank sector to build one thous<strong>and</strong> large<br />
factories subject to <strong>in</strong>ternational st<strong>and</strong>ards <strong>and</strong> exp<strong>and</strong><strong>in</strong>g <strong>the</strong> present factories with<br />
<strong>in</strong>vestments higher than LE 15 million.<br />
The year 2006 has witnessed an <strong>in</strong>volvement with 110 large factories with an<br />
implementation rate of 122 percent with<strong>in</strong> <strong>the</strong> period January – September.<br />
The number of new factories that began production reached 62 factories while 48 factories<br />
have witnessed expansion with a rate of 43%. The <strong>in</strong>vestment costs reached LE 5.644<br />
million. The cost of <strong>the</strong> new factories was LE 3.599 <strong>and</strong> <strong>the</strong> expansion cost was about LE<br />
2.045 million. This activity provided 26.128 extra jobs with 17.197 jobs <strong>in</strong> <strong>the</strong> new factories.<br />
2.4.2. Bus<strong>in</strong>ess market program<br />
The program aims at f<strong>in</strong>anc<strong>in</strong>g 2000 small <strong>and</strong> overage projects <strong>in</strong> <strong>the</strong> fields of <strong>in</strong>dustry<br />
<strong>and</strong> productive services that have <strong>the</strong> ability of quick operation. Their <strong>in</strong>vestments range<br />
from LE 5 million to LE 15 million for <strong>the</strong> average project <strong>and</strong> less than LE 5 million for <strong>the</strong><br />
small one. The number implemented factories dur<strong>in</strong>g <strong>the</strong> period January-September/2006<br />
reached 436 projects.<br />
2.4.3. The Egyptian <strong>in</strong>dustry modernization Program<br />
In <strong>the</strong> framework of Egyptian – European partnership, Egypt began to implement <strong>the</strong><br />
modernization program s<strong>in</strong>ce <strong>the</strong> fiscal year 2002/03. The program aims at <strong>in</strong>creas<strong>in</strong>g<br />
<strong>the</strong> competitiveness of Egyptian products to allow <strong>the</strong> country to be <strong>in</strong>tegrated with<strong>in</strong><br />
<strong>the</strong> global economy. This will lead to <strong>the</strong> <strong>in</strong>crease of <strong>the</strong> <strong>in</strong>dustrial export volume <strong>and</strong> <strong>the</strong><br />
creation of more jobs.<br />
The modernization program costs 437 million EURO, <strong>the</strong> European Union contributed 250<br />
million euros or 59 percent of <strong>the</strong> total cost. The program has benefited 430 <strong>in</strong>dustrial<br />
facilities dur<strong>in</strong>g <strong>the</strong> first three years. The Industrial Modernization Center (IMC) has<br />
assumed <strong>the</strong> full supervision on implement<strong>in</strong>g <strong>the</strong> program s<strong>in</strong>ce 2005/06. The center<br />
succeeded <strong>in</strong> implement<strong>in</strong>g <strong>the</strong> program <strong>in</strong> 3.400 facilities with<strong>in</strong> <strong>the</strong> modernization plan<br />
with a f<strong>in</strong>anc<strong>in</strong>g volume of 146 million EURO dur<strong>in</strong>g this year 145,6 million EURO were<br />
allocated to f<strong>in</strong>ance <strong>the</strong> modernization program dur<strong>in</strong>g 2006/07 to allow a total of 7.300<br />
facilities to have benefited from <strong>the</strong> program.<br />
The IMC, <strong>in</strong> cooperation with <strong>the</strong> Union of Industries <strong>and</strong> <strong>the</strong> bank<strong>in</strong>g <strong>system</strong>, plan to<br />
pump LE 70 billion to f<strong>in</strong>ance <strong>the</strong> implementation of <strong>the</strong> 1000 factories program dur<strong>in</strong>g<br />
2005/2011. This will participate <strong>in</strong> rais<strong>in</strong>g <strong>the</strong> <strong>in</strong>dustrial growth rate from 5 percent to 9<br />
percent with<strong>in</strong> this period <strong>and</strong> will <strong>in</strong>crease direct job opportunities by 1,5 million. The<br />
24 <strong>the</strong> <strong>research</strong> <strong>and</strong> <strong><strong>in</strong>novation</strong> <strong>system</strong> <strong>in</strong> Egypt