CAIRO — Egyptian-made products just got a boost from parliament, which has approved amendments broadening a law that gives preference to domestic products over imported ones in government contracts.
On May 29, legislators passed changes to a 2015 law known as the Egyptian Industrial Product Preference Law in Government Contracts. The amendments expand the definition of industrial products to include information technology products and services. Also, the original law applied to government contracts only, but now preference also will be given to all contracts involving companies totally owned by the state and companies partly owned by the state in partnership with the private sector. Such companies include the Holding Company for Water and Wastewater, Telecom Egypt and Egypt Air.
With the amendments, a committee is to be formed to oversee granting preferences. The committee will include representatives of the ministries of Trade and Industry, Public Business, Supply and Trade, and Investment. The committee will also include representatives of all the Federation of Egyptian Industries (FEI) chambers.
The FEI or the Information Technology Industry Development Agency will issue forms indicating that at least 40% of a product or service is purely Egyptian. The prime minister can raise this to 50% if it doesn't affect the final product's quality. He may also exclude from the law certain contracts concluded by the police, the armed forces, intelligence agencies and other institutions that require confidentiality for national security reasons.
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