In this transition phase after the country’s revolution, Egypt’s economy, along with its political scene, is witnessing a process of new growth.

Daily News Egypt reported that Egypt’s minister of trade and industry Mr Mahmoud Issa said that the country’s iron and steel industry will not be affected as the government proceeds to withdraw licenses from a limited number of factories.

Mr Issa stressed that the Central Bank and the bank unions have a key role to play in solving the problems of the factories.

Mr Issa stressed that the ministry will be supporting a free market in Egypt and providing attractive investment regulations to simplify procedures in the future.

However, he pointed out that this not means there will be an absence of control and oversight provisions.

He is currently in the process of submitting a draft to amend the law that protects competition among businesses as well as drafting a more strict anti trust law to prevent monopolistic practices.

The minister’s announcement comes in light of the recent court ruling in the case of Mr Ahmed Ezz, chairman of Ezz Steel and Amr Assal, former industrial development chief, who were found guilty of graft, sentenced to 10 years in prison, and fined EGP 660 million.

Ms Magda Kandil ED of the Egyptian Center for Economic Studies said “This is part of the reform process they should be doing in general, not just for monopoly or steel industry. There’s no question that the business we witnessed over the past years was filled with many monopolistic schemes. The ministry right now does not want investors to be afraid, they are trying to isolate what’s happening in Ezz Steel from other investors. The ministry is trying to say that the country is against monopolization and against illegal practices and supports fair and healthy competition and investments.”

She added that “During the previous regime, rather than providing a leveled atmosphere for doing business, the laws provided officials in power with excuses that they could use to milk the system. We need to continue putting together the right laws so we do not allow someone to milk the system and monopolize. We have to preserve the pillars of private led growth; we have to have checks and balances so we don’t find ourselves complaining from those who achieve wealth behind measures through these schemes.”

With the minister of trade’s recent announcements, other steel companies have been adjusting in order to make sure they are on the same path of reform as the country’s policies are changing. Steel companies have met with the ministry of trade and industry on Saturday to discuss payment of license penalties. Bishay Steel agreed to pay the license cost of EGP 385 million, while Tiba Steel will pay EGP 38 million. Suez Steel is supposed to pay EGP 385 million, and Ezz Steel should pay EGP 660 million.

(Sourced from thedailynewsegypt.com)