These temporary licenses will allow factories to deal with all parties and banks.
The legislation authorizes the Industrial Development Authority to issue temporary licenses for one year - File Photo
Egyptian President, Abdel Fattah el-Sisi, has approved a temporary licensing law for informal industrial facilities, which will last for up to three years. The move is set to provide the necessary impetus to the informal manufacturing sector in the country.
Business Today has released information highlighting the benefits of such temporary licenses. According to sources in the industrial development sector, these temporary licenses will allow factories to deal with all parties and banks as if they have a permanent license.
The legislation authorizes the Industrial Development Authority to issue temporary licenses for one year for non-formal industrial projects to operate while continuing to regulate their status.
The Ministry of Trade and Industry will have the authority to extend these licenses for up to two additional years based on the recommendation of the Industrial Development Authority. The draft law received the approval of the House of Representatives.
This month, the General Authority for Industrial Development began receiving requests to regulate the status of unlicensed facilities. The temporary declaration ensures the owner of the same rights as their formal counterparts, provided they regulate their status during this period.
The General Authority for Industrial Development is preparing to end the use of paper-based correspondence soon and establish electronic connections between its departments.
This is part of a large project to enhance the Authority's performance and improve the services provided to investors. The Authority has already conducted electronic surveys for nearly 18 million document assets to store them digitally.
The temporary licensing law is expected to provide a major boost to the informal manufacturing sector in Egypt, which has been struggling to compete with formal enterprises due to a lack of regulation and support.
With the temporary licenses, informal industrial facilities will be able to operate legally, access financing, and gain recognition for their contributions to the economy. The move is also part of the Egyptian government's efforts to modernize the country's economic infrastructure and attract foreign investment.
