الجلسة الرابعة من ملتقى بناة مصر تناقش أدوات الدولة لدعم تصدير مواد البناء واحتياجات المساندة التشريعية لتيسير فرص انتشارها بالخارج

Commercial Representation: Great Opportunities for Growth of Egyptian Building Materials Exports to Arab and African Countries

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Ahmed Sherine: We have 30 million tons of surplus cement and we seek to export more than 15 million by 2024
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Investment Committee Rapporteur of the National Dialogue: Unprecedented interest from the political leadership in developing industry and increasing export rates
The building materials sector has all the elements and quality that qualify it to compete in foreign markets if the necessary support and assistance is provided.

The fourth session of the Builders of Egypt Forum, the largest event in the construction and building sector, in its ninth session, discussed the opportunities and challenges of exporting the building materials industry, amidst the attendance of a large number of ministers and the participation of Arab and African delegations who listened to a review of the mechanisms for exporting the Egyptian construction and building industry and complementary industries to the countries of the region, and discussed the opportunities for exporting the modern Egyptian experience in extensive urban development and the plans of real estate development companies to expand in foreign markets, and repeat the models of distinguished residential and tourism projects abroad, in addition to strengthening the paths of the Egyptian real estate industry export file.

The session addressed the file of Egyptian strategic industries, most notably the building materials industry, which represents a major partner in development plans, reviewing the state’s tools to support the export of building materials as one of the main industries that are intertwined with the construction industry, and the needs for political and legislative support for these industries to facilitate their opportunities for expansion abroad and support the use of their expertise.

The session raised the role of political relations with Arab and African countries in providing greater opportunities for Egyptian companies to deepen their presence abroad, in addition to the necessity of strengthening the role of foreign trade representation offices to facilitate obtaining the required information about available development projects and mechanisms to overcome potential obstacles in implementation.

During this session, moderated by Eng. Ahmed Kamal Abdel Moneim, Executive Director of the Environmental Compliance and Sustainable Development Office at the Federation of Egyptian Industries, the speakers were Minister Plenipotentiary Amr Hazaa, Director of Arab Countries Affairs at the Commercial Representation Authority, Ahmed Sherine Karim, Head of the Cement Division at the Federation of Egyptian Industries, Issa Rashwan, Director General of Certification and Conformity Assessment at the General Organization for Standardization and Quality, in addition to Dr. Samir Sabry, Rapporteur of the Local and Foreign Private Investment Committee at the National Dialogue.

At the beginning, Minister Plenipotentiary Amr Hazaa, Director of Arab Countries Affairs at the Commercial Representation Authority, said that the building materials industries have witnessed great development worldwide, but at the same time, the European Union has begun to impose requirements related to carbon limits on some sectors, including iron and cement.

He added that there are opportunities for the growth of Egyptian building materials exports to Arab and African countries, noting that the export of pipes, marble and ceramics is linked to the status of engineering consulting companies in setting specifications that are consistent with Egyptian products.

Hazza said that the Commercial Representation Authority, through its offices abroad, of which there are 20 offices in Arab and African countries, is conducting marketing studies to provide export opportunities as well as encouraging companies to participate in exhibitions and trade missions.

He stressed that export expansion in African countries requires the availability of a commercial structure of banks, shipping and logistics, especially with the difficulty of exporting building materials by air, and then shipping is by sea, but there are landlocked countries that are difficult to reach, which increases the cost of exporting to Africa, so it is important to have branches of Egyptian banks, especially since building materials exports are dense due to their connection to project implementation.

Hazza pointed out the need for coordination between producers and consulting companies in order to find opportunities to participate in projects, as well as with banks and shipping lines, noting that export risks are guaranteed by an agreement with the Ministry of Industry and the Islamic Corporation for the Insurance of Investment and Export Credit, in addition to the presence of the Egyptian Export Development Bank.

Regarding trade agreements and the extent of benefiting from them, he explained that Egypt is bound by many trade agreements with countries and international blocs, and they are largely activated except for some exceptions requested by countries due to their own circumstances, noting that the construction and building sector can benefit from the agreement to liberalize trade in services with Arab countries that entered into force in 2019.

He called on export councils, workers in the export sector and exporting companies to review trade agreements, whether with economic blocs or free trade agreements with many countries that contribute to removing customs duties, which gives products a competitive advantage.

On the other hand, Hazza pointed out that the commercial representation offices work according to the available capabilities to provide marketing studies, export opportunities and importer lists, although the past period witnessed a rationalization of expenses by reducing the number of commercial offices and the number of commercial diplomats in those offices to range between one or two individuals in large countries such as Russia, America, China and Saudi Arabia.

For his part, Ahmed Sherine Karim, head of the cement division of the Building Materials Chamber of the Federation of Industries, said that the cement industry in Egypt has a surplus that is almost equal to our cement needs, in addition to the fact that there is a large demand for building materials from surrounding countries, pointing out the importance of exporting this surplus in order to provide hard currency for the country, stressing at the same time that the building materials industry represents 20% of Egyptian exports.

Sherine added in his speech that the cement industry represents 2 to 3% of the volume of building materials exports, noting that it is targeted to increase the number to three times during the coming period, especially in light of the challenges facing the country and its need for difficult work.

He explained that the cement industry includes more than 50% local products, and has a large surplus that should be exported with increasing demand in the foreign market, but this requires a clear plan and study with specialized management to achieve this, as all companies present in the local market, whether foreign or local, have great opportunities for export.

Sherine pointed out that one of the challenges facing the sector is controlling carbon emissions, explaining that many companies have begun to adjust their situations but need more support and assistance from the state.

He pointed out that Egypt produces about 80 million tons of cement annually, but we have an actual production capacity to produce about 92 million tons, noting that Egypt’s maximum cement consumption recorded 56 million tons during 2016, but declined to 47 million during 2023.

He expected cement production to decline to 45 million tons during the current year, in light of the suspension of building materials licenses, noting that Egypt’s consumption of unlicensed cement reached 60% of the total consumption, but declined to 20% with the implementation of new building laws and building materials reconciliations.

Regarding exports, Sherine explained that about 13 million tons were exported during 2023, and the target is to export about more than 15 million tons during 2024, and thus the export and consumption will be about 60 million tons, and from here we have about 30 million tons of surplus that has not been used.

For his part, Issa Rashwan, Director General of Certification and Conformity Assessment at the General Authority for Standardization and Quality, revealed that a committee is currently being formed to study the issuance of a specification for Egyptian basalt as an alternative to pozzolana cement, stressing the Authority’s keenness to grant the accreditation certificate, which was obtained from the National Accreditation Council (EGAC), in accordance with the requirements of the international standard specification ISO 17065, for all activities in the country.

Issa added in his speech that the Authority is also keen to ensure that it complies with Egyptian standard specifications, which gives confidence in Egyptian products and supports the opening of foreign markets, thus increasing their opportunities for export.

The Director General of Certification and Conformity Assessment with Specifications and Quality pointed out that the building materials sector is number one in the areas of accreditation at the Authority, stressing that standard specifications provide more confidence and are one of the sustainable development goals advocated by the state.

Rashwan added that the Authority is a major supporter of Egyptian products, and that in order to protect and preserve the reputation of Egyptian products, some precautions are taken in producing or issuing specifications for high-risk products, noting that work is underway to develop final solutions to place confidence in any certificate issued by the Authority during the coming period.
Dr. Samir Sabry, Rapporteur of the Local and Foreign Private Investment Committee of the National Dialogue, said that the building materials sector has all the elements and quality that qualify it to compete in foreign markets if the necessary support and assistance are provided to achieve this, pointing out that the Egyptian state during the era of President Abdel Fattah El-Sisi has been interested in supporting and developing the industry to meet the needs of the market.

During his participation in the activities of the 9th edition of the Builders of Egypt Forum, he pointed out that the cement sector is qualified to reach 30 million tons in exports during the coming period, noting that we can obtain production capacities of about 80 million tons annually, while the consumption rate reaches 45 million tons, indicating that more export opportunities are available to foreign markets, but they require more support and providing export support, with the removal of all obstacles facing manufacturers to increase the volume of the sector’s exports.

Regarding iron, Sabry explained that about 1.5 million tons of iron are exported annually, and the Egyptian market has the capacity to export about 3 million, which means that we have new opportunities to double iron and cement exports and it is possible to reach 300% in the coming period, and the world consumes about 4.5 billion tons of cement annually, noting that there are many markets in European countries that we can open markets in and export to.

Sabry stressed that industry is an integral part of the Egyptian economy, as it contributes about 17% of the gross domestic product, and absorbs about 15% of the total regular workforce, in addition to its contribution to export activity by a percentage ranging between 80% and 85% of the total non-petroleum commodity exports, which makes it exchange first place with remittances of Egyptians abroad in the list of the main sources of foreign currency generation, and hence the importance of supporting this vital sector, which is considered, along with the agricultural sector, one of the most important pillars of the national economy.

He pointed out that the recent period witnessed a major boom achieved by the industrial sector with the support of large projects, which contributed to the growth of the industry and increased export rates, despite external challenges, and this was reflected in the growth of the Egyptian economy and increased job opportunities, as the political leadership paid unprecedented attention to developing industrial sectors and increasing export rates, adding: “The efforts of the industry in development are multiple, such as encouraging industrial activities for medium and small enterprises and integrating them into the formal economy.”

The activities of the ninth session of the Builders of Egypt Forum kicked off this Sunday morning, in the presence of Dr. Manal Awad, Minister of Local Development, Eng. Mohamed Shimi, Minister of the Public Business Sector, and Eng. Sherif El-Sherbiny, Minister of Housing, Utilities and Urban Communities, with the participation of Arab and African delegations, to review the mechanisms for exporting the Egyptian construction and building industry and complementary industries to the countries of the region, and to discuss opportunities for exporting the modern Egyptian experience in extensive urban development and the plans of real estate development companies to expand into foreign markets, and to replicate models of distinguished residential and tourism projects abroad, in addition to strengthening the paths of the Egyptian real estate industry export file.
The forum, which is held under the title “Opportunities for Egyptian Companies in Regional Development Plans”, and is organized by Excellent Communications, a subsidiary of United Media Services (UMS), in cooperation with the African Federation of Construction Contractors’ Organizations, reviewed the comprehensive development plans in the region and the map of major projects in light of the global conditions and turmoil and the challenges imposed on emerging countries, and the opportunities for Egyptian companies to participate in the fields of infrastructure development, construction projects, energy and technological infrastructure in light of the modern economic transformation of the Egyptian state.

The forum witnessed many sessions that included ministers, officials, and senior executives of major companies and institutions concerned with the construction and sustainable development sector, real estate development, financing institutions, and local and regional business organizations, to present the complete maps of development and investment in the Arab and African region to Egyptian private sector companies, as the forum includes major brands in the region in the fields of construction and development represented by contracting unions and concerned organizations, which are looking for opportunities to form alliances with Egyptian companies.

The ninth edition of the forum witnessed the participation of a number of leaders of institutions and agencies concerned with development files in Arab countries, most notably the Kingdom of Saudi Arabia, Libya and Iraq, with the aim of presenting a development and reconstruction strategy in neighboring countries with clear terms and foundations that test the region’s aspirations towards reconstruction paths and establish mechanisms for partnership between Egyptian companies and their national counterparts in the countries of the region. The forum is scheduled to include the presence of a delegation of representatives of business organizations concerned with development and investment files in these countries.

The forum hosted a number of international financing institutions that play an important role in supporting development projects and implementing countries’ strategies to achieve the aspirations of their peoples for a better future, most notably the Islamic Development Bank, the African Development Bank, and the Arab Bank for Economic Development in Africa.