مع العدد ملحق
SECTOR NEEDS 18 MONTHS TO RECOVER FROM ECONOMIC DECISIONS
The Chamber of Food Industries (CFI) expects the sector to grow by 8-10% this year, after a year of sharp decline in sales in 2017. Ashraf El Gazayerli, chairperson of the CFI, said the sector suffered violent shocks in recent years, due to high production costs and the decline in purchasing power of citizens, after inflation hiked to an unprecedented rate. He added that the company’s sales fell by 20-50% last year, noting that the decline ratio was dependent on the importance of products to consumers. He pointed out that in recent years,there has been a decline in the purchasing power of Egyptian consumers, especially after the decision to liberaliae the exchange rate and inflation rising significantly, which led to increased supply and less demand in the domestic market. He added that there is fierce competition between companies operating in the sector to distribute products and increase production capacity, which led many of them to reduce their profit margins to attract consumers. El Gazayerli also said that the sector will achieve growth rates ranging from 8% to 10% and will take at least 18 months to fully recover. Moreover, he estimated the size of the sector’s investments at EGP 500bn and employees at 1 million. He added that the government has taken many measures to maintain and develop those investments, the most prominent being Law No 1 of 2017 on the establishment of the Food Safety Authority.“The number of the law itself signifies the state’s interest in the sector,” he stressed. He added that among the legislation that stimulates the sector is the issuance of the Industrial Licensing Law and the new Investment Law, both of which aim to attract local and foreign investments to the sector. El Gazayerli urged the need to activate the food safety law and remove obstacles to start work on improving the atmosphere of the food industry in Egypt, which will have a great impact on the reputation of Egyptian products in the local and international markets. He stressed that the Food Export Council has a clear vision for the development of exports of the sector and is working to open new markets, especially in African countries, particularly after the decline of exports to a number of Arab countries,foremost of which are Sudan and Libya.