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The Industrial Modernization
Program is a national
initiative, with a total
budget of 430million Euros,
of which 250 million is
funded by the European
Union. making it the largest
industrial
support
program the European Union
has ever funded in the
Southern Mediterranean
countries. The overall goals
of the IMP are: |
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First : |
Upgrade Egyptian
technological skills to
International Standards. |
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Second : |
improve the performance of
the workforce a all levels. |
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Third : |
Enhance investment
opportunities. |
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Fourth : |
Develop an appropriate
business environment for
better efficiency. |
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The specific Program
objectives include : |
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1- |
Development of private
enterprises through the
raising of the level of
efficiency and
competitiveness in the
industrial sector. |
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2- |
A stronger Ministry of
Industry Technological
Development. |
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3- |
Stronger business
associations, support
institutions and services
through the support
Industrial Modernization
Center. |
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4- |
An increase in industrial
exports. |
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5- |
.An improvement in the
policy and regal framework
around the industrial
sector. |
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6- |
Greater access to market
information for SMEs |
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This will be achieved
through five separate but
integrated components of
programs: |
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1- |
Policy and Finance |
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2- |
Trade & Foreign Direct
Investment |
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3- |
Competitiveness/Management
& Training |
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4- |
Business Resource Centers |
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5- |
National
Quality/Institutional
Support/Cluster &
information |
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The Industrial
Modernization Program |
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is a comprehensive program
that builds upon the results
achieved by other
less-ambitious programs such
as the Private Sector
Development Program (PSDP)
which was implemented in
cooperation with the
European Union as a pilot
program for enterprise
upgrading during the period
from 1997 till 2002. The IMP
also takes advantage of the
experiences gained by other
programs undertaken by the
Federation of Egyptian
Industries, Business
associations and the
Ministry of Industry and
Technological Development as
well as the experiences of
other countries that
implemented similar
programs.
In order, to ensure the
required flexibility and
expedite implementation of
the program, an
organizational structure
characterized by efficiency
as well as flexibility in
implementation has been
adopted. The structure is
formed of the Industrial
Modernization Center the
Industrial Modernization
Council and the Advisory
Board. |
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The Industrial Modernization
Center |
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is an autonomous
Organization given the
financial and administrative
Flexibility for sound and
rapid execution of its set
Programs. The Industrial
Modernization Council which
effectively reflects
stakeholders from both
government and private
sector provides the
strategies and guidelines as
well as approve the annual
work plan and budget of the
Industrial Modernization
Center. The Advisory Board
provides advice to the
Council on drafts of the
annual work
plan and budget of the
Industrial Modernization
Center, added to other
proposals or submissions to
the Council. In an effort to
ensure the maximum output
possible from the Industrial
Modernization Center's
services, the location of
the Center was chosen to be
within the premises of the
Federation of Egyptian
Industries. This decision
aimed at bringing together
the supplier of services
and the main beneficiaries
of these services in one
building.
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kind of domains the
Industrial Modernization
Program deals with
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It actually deals with three
domains: |
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First : |
Enterprise Upgrading which
include improving
productivity, quality,
support for export-oriented
activities, enhancing
competitiveness and
Training.
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Second : |
Sectorial Support. This
includes the establishment
of 20 business resource
center throughout Egypt and
the identification and
promotion of local or
sectorial clusters of
enterprises sharing the same
needs including new SME
business associations.
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Third : |
Policy Support which
includes Regulatory
reform, strengthening the
legal environment and
strengthening the Ministry
of Industry and
Technological Development.
all as means to ensure
sustainability after
completing the TMP
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The achievement indicators
of the IMP are clearly
indicated in the agreement
between the European Union
and the Ministry of Industry
and Technological
Development. certain goals
were set aiming at the
upgrading of the Egyptian
Industries in order to
qualify it to compete within
the
International arena. Among
these goals are the
following:
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First : |
Improved competitiveness
for about 5000 enterprises
by means of the provision of
technical assistance |
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Second : |
An improvement in the
ability of business
associations to represent
and serve their members'
interests, by means of the
provision of technical
assistance. |
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Third : |
An Increase in the
effectiveness of about 300
Egyptian business
consultants and trainers by
means of training and
technical assistance. |
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Fourth : |
An improved business
environment, by means of the
institutional development of
the Ministry of Industry and
Technologic Development and
about 20 support institution
including training and
research institutes. |
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Fifth : |
An improved legislative,
regulatory, and
administrative environment
by means of draft text and
timetables for their
adoption, for at least four
legislative regulatory and
institutional reforms
affecting the business
environment. |
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The Industrial Sector
contributes to 20% of the
overall Egyptian GD9 making
it the largest contributor
among the production
sectors Furthermore a
strong and growing
industrial sector is known
to be the main drive for
economic development and
the primary source for
employment opportunities.
This makes the Industrial
Modernization Program one
of the key contributors to
sustainable development.
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Therefore the Industrial
Modernization Program is
truly a national program. In
order to fulfill its
visionary goal various
governmental bodies should
render all needed support
and enthusiasm. Its success
requires the combine
participation and
coordination of activities
between the different
governmental and
non-governmental
institutions in order to
help attain its objectives
and more importantly to
ensure its continuity beyond
the completion date of the
formal program.
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what can the German - Arab
Chamber of Industry and
Commerce do to help and what
kind of role it can play
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It can, through its members,
or as a chamber assist in
the success of the Program
in a number of ways to name
some:
-Members participation in
the activities of the IMP
-Preparation and submission
of collective proposals and
programs/to enhance the
effectiveness of the program
components.
-Encouraging German
enterprises/experienced in
the different aspects of
industrial modernization
to participate in the
activities of the program.
- Assisting in promoting
Egyptian exports to the
German and European market.
-Proposing programs to
attract German Industrial
companies to invest in new
ventures in Egypt or create
joint ventures with
attractive enterprises.
-Identifying appropriate
German institutions or
centers
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Industrial
Modernization
