The Chamber of Food Industries held a meeting on Wednesday to discuss the implications of police raids on food factories that use sugar and discussed the prime minister’s decision to set a profit margin on certain commodities.
The chamber asserted its rejection of the recent police raids. “The regulatory apparatuses’ campaigns for confiscating sugar from food factories has resulted in halting production in many factories,” said Ashraf Al-Gazayerli, chairperson of the Chamber of Food Industries.
He explained that such measures represent a significant risk to the industry and that the halt of production will be followed by an increase in prices, in addition to laying off thousands of employees if the problem persists.
Moreover, a significant decline in export activity is expected, leading to a reduction in the flow of hard currency to Egypt. Such actions will likely result in a negative impact on the investment climate, said Al-Gazayerli.
“We contacted the authorities to stop this crisis, and they have shown their understanding of the impacts of such actions and reaffirmed their support for investments and providing the means of production for the affected sectors,” Al-Gazayerli continued.
On the other, Al-Gazayerli asserted the chamber’s refusal of the prime minister’s decision to set a profit margin on some commodities. The decision represents a clear violation of the law of investment incentives, which prohibits intervention by any administrative authority in pricing or determining profits.
Al-Gazayerli asserted that the return to Law No. 163 of 1950 is not consistent with free market economy dynamics, and it will have a negative impact on the investment climate, noting that Article 27 of the Constitution focuses on promoting investment and confirms the impossibility of returning to the legislation of the 1950s.