The machinery and equipment division at the Federation of Egyptian Industries (FEI) seeks to hold annual exhibitions in Africa for Egyptian machinery and equipment, according to division head Mohamed El-Menshawy.
He explained that these exhibitions would encourage other African nations to buy and rent Egyptian machinery and equipment.
El-Menshawy told Daily News Egypt that the first exhibition will be organised in Ghana soon. The division has already chosen a location and is currently working on finishing the necessary procedures to hold the exhibition.
He added that after Ghana, the division is considering holding similar exhibitions in Kenya and Sudan.
He revealed that companies within engineering industries, construction, machinery and equipment, packaging, and home appliances are the main participants and sponsors for these new exhibitions.
El-Menshawy noted that the depreciation of the Egyptian pound against the US dollar gives Egypt a higher competitive value because it reduces the cost of Egyptian machinery and equipment as compared to other countries.
The division head went on to explain that Israel is the main competitor for Egyptian companies in the field of equipment and machinery, followed by India, Turkey and Lebanon, all of which heavily invest in Africa.
El-Menshawy pointed out that the division cooperates with several Lebanese companies to expand in Africa owing to the latter’s current presence on the continent and because cooperation with them is better than cooperation with African companies.
He added that they would not be working in cooperation with the Lebanese-Egyptian Holding Company.
The Lebanese-Egyptian Holding Company, based in Beirut, was established in early 2016 and sponsored by the Ministry of Industry and Foreign Trade. Unlike the division, however, the holding company’s mandate encompasses everything from building materials, clothing, and home furnishings, to engineering, food, and medicine industries.
“The division is interested in exporting building machinery and equipment to several African countries such as Rwanda, Kenya, Ghana, and Sudan,” said El-Menshawy. “The division targets $1bn worth of machinery exports to Africa in the coming years.”
He noted that the division supports local small- and medium-sized enterprises (SMEs) that produce machines by providing them with opportunities to participate in outside exhibitions, with the support of up to 80-90% of the total cost of participation.
In addition, the division is considering holding resale exhibitions to sell machinery from larger companies to other companies.
Leasing machinery in Egypt has limitations, as companies lack sufficient solvency to lease or rent equipment to and from other local companies rather than to larger companies or those outside Egypt, the division head concluded.