The agreement is in line with President Abdel Fattah El-Sisi's initiative to strengthen the industrial sector's pivotal role.
Engineer Omar Abdel Aziz head of the Foundries Division - File Photo
Egyptian metal manufacturing industries are set to receive a boost as the Industrial Chamber and the Foundries Division have partnered with National Bank of Egypt to provide financing for the modernization of casting factories throughout the country at a reduced rate of 5%.
The agreement is in line with President Abdel Fattah El-Sisi's initiative to strengthen the industrial sector's pivotal role in achieving targeted economic growth and deepening local manufacturing.
Engineer Omar Abdel Aziz, head of the Foundries Division, announced in a press statement that the bank will provide necessary support to finance foundries that wish to update and upgrade their machines and equipment, as well as transition to electricity rather than relying on environmentally harmful fuels such as coal and diesel.
This is in line with the Central Bank of Egypt's initiative to modernize the industry at a return rate of 5% per year, according to President Sisi's initiative to support small projects.
Abdel Aziz noted that the cost of environmentally friendly casting furnaces exceeds EGP 500,000 per furnace, which is a significant cost for factories and workshops, especially as each facility requires multiple furnaces. As a result, they have resorted to the banking sector to take advantage of the initiative to support local industry.
Abdel Aziz confirmed that the agreement was reached as a result of efforts and negotiations carried out by the division with bank officials, in line with the continuous instructions from Major General Imad El-Alfy, head of the chamber, aimed at helping foundries and developing them more efficiently, which will have a significant positive impact on production costs, increase productivity, and enhance quality.
He also noted that foundry owners are expected to start submitting their requests to the bank in the coming days to begin the necessary procedures for obtaining the required financing, which will help to include the sector in the national economic growth.
This initiative will have a positive impact on the industry as it will help modernize factories, upgrade their equipment, and reduce production costs, thus increasing productivity and enhancing the quality of products. It will also provide support to small and medium-sized enterprises, which are vital to the country's economic growth.
