The Federation of Investors of Small and Medium Enterprises discussed the challenges facing complementary industries and ways to integrate them into the macroeconomic economy, calling for an urgent national plan to support and increase productive energies within small and medium factories.
Engineer Alaa Al -Saqti, the President of the Federation, warned of the breadth of the phenomenon of isolation of small industries from the real value chains, stressing that most of these projects have become only operating as a sub -contractor without owning technology or design or even the ability to pricize their products.
He added that more than 80% of the small and medium factories in Egypt are working on the sidelines of the industry, and they lack any real link with the major factories or export markets, warning that the continuation of this situation will lead to the emptying of the small industries sector from its productive and technological content, and turning it into a fragile entity hostage to the fluctuations of the market.
Al -Satari called on the government to quickly develop an integrated national strategy to integrate small projects into major industrial supply chains, similar to what countries such as Türkiye and India did, through:
Obliging the major factories in a real local component of local suppliers.
– Technically small factories support their products according to quality standards.
– Linking bank financing to major factories with the rate of incorporation to young suppliers.
– Allocating tax incentives to major factories that expect supply contracts with small factories.
Al -Saqti stressed that ignoring this file threatens the exit of thousands of small factories from the market in the coming years, calling for a comprehensive national industrial dialogue that includes adult and young manufacturers to develop a road map for real industrial integration.
Al -Satari said that the small factory in Egypt does not need temporary support, but it needs a real opportunity to be part of the industry, not just a tail of it.
Eng. Ahmed Al -Assar, Advisor to the Union of Investors of Small and Medium Enterprises, stressed that the absence of integration between small and large factories means in practice the continued industrial dependency of foreign components, noting that there are huge opportunities to localize local components in vital sectors such as electrical appliances, agricultural mechanization, and packaging industries, provided that there is a clear organizational will that supports technology transfer and localization of designs, not only Simple manufacturing.
Al -Assar added that building an integrated national industrial base is not achieved without transferring experiences and skills from major entities to small factories, calling for that
