Egypt is looking to open new markets, especially as most countries are suffering from closures due to the universal unavailability of supply chains.
Egypt’s Chemical and Fertilizers Export Council has reported that the sector’s exports during the first four months (4M) of 2021, covering the period from January to April, amounted to $1,95bn.
This reflected a growth rate of 30% compared to the same period in 2020, which saw growth amounting to $1,496bn.
Exports of plastics and plastic products achieved an 80% growth rate compared to the same period in 2020. Additionally, organic chemical products achieved growth of 62% during 4M of 2021, compared to the same period of 2020.
These markets imported about $1,105bn, achieving a growth rate of 32% in 4M of 2021, which represents 57% of the total value of chemical industry exports in the first four months of the year, compared to the same period in 2020.
During the novel coronavirus (COVID-19) pandemic, the government launched an immediate payment initiative, which allows for the payment of 85% of the total value of exporters dues immediately. This is instead of paying it in instalments that may take several years.
Moreover, the government is looking to open new markets for Egyptian products, especially as most countries are suffering from a crisis of closures and difficulties in the availability of supply chains. This was driven by individual government policies towards the COVID-19 crisis.
The Egyptian Government has worked to ensure that locally manufactured products replace the competing products from China and other countries that have left the market due to total closures. Some commodities, including fertiliser products, have seen a price spike in the first quarter (Q1) of 2021, he disclosed.
This may also be driven by the announcement of a new export subsidy programme and the start of its implementation, besides the continuation of the state’s efforts to reduce the economic effects of the pandemic.