| dc.description.abstract | The plastic industry helps to establish an integrated system of industries around it, which gives it special importance in the process of industrial development in general, and in the process of industrial deepening in particular. Investments in the plastics industry in Egypt are about $7.2 billion, and the value of its production is about $16.6 billion annually. Egypt produces about 2.1 million tons of plastic products, which represents about 20% of the size of the African market. Egypt consumes about $9.4 billion in plastic products annually, and consumption is growing at 9.7% annually.
Egypt’s plastic industry is characterized by the dominance of the private sector, and a limited role of the public sector. Most of the factories are small and medium in size. Their capital is limited, and they often take the form of individual companies. A large proportion of factories operate outside the formal sector. Most of them employ a small number of workers. They are also characterized by low productivity and value added, high waste, and weak labor skills. A large proportion of factories are operating below full capacity.
Deepening the plastics industry requires a package of integrated policies and mechanisms. A comprehensive strategy must be implemented to develop and deepen the plastics industry, through increasing local and foreign investments, and providing more incentives and credit facilities to factories, especially the incentives necessary to support their ability to adopt modern technology, and to exclude the turnkey system in the establishment of plastic factories. It is necessary for Egyptian engineers and technicians to participate in the process of manufacturing plastics machines, and not merely to be trained to operate the machines. It is also suggested to adopt a strategy to integrate informal plastic factories in the formal sector, and to design this strategy from a developmental rather than a taxation standpoint.
It is important to adopt commercial policies that encourage the deepening of the plastics industry by facilitating foreign trade for production requirements and final products of the plastics industry, developing laboratories and inspection processes for imports of production requirements, and speeding up their release from customs outlets. Efforts to deepen the plastics industry must proceed hand in hand with importing plastics industry inputs that are not available locally in sufficient quantities, as well as importing scrap and recyclable plastic waste.
In terms of production policies, a comprehensive policy must be implemented to transform the plastics industry into a sustainable industry in the future. It is also necessary that industrial chambers and the relevant authorities in the industrial clusters update and audit databases for the plastics industry, raise the awareness of factories regarding the importance of implementing a quality control system, and extend the responsibility of producers to the post-production stage, as well as support innovations for reuse and recycling of plastic and its waste, and for finding alternatives to single-use plastic products, and providing incentives for the production and use of biodegradable plastic products. The establishment of highly efficient maintenance workshops to manufacture spare parts for this industry must be encouraged. It is important to use the policy of banning and imposing fines, especially on single-use plastic products. In general, all policies must take into account that deepening the plastics industry does not conflict with the sustainable development goals.
Keywords: Plastics industry-Challenges of growth and deepening-Policies. | en |
