It was another busy Wednesday at the cabinet, with the country’s ministers approvinga raft ofnew decisions. Among the most notable are:

(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

#1- Executive regulations for hospital privatization bill get the greenlight: The cabinet has approved a resolution regarding the issuance of executive regulations for the hospital privatization bill — which allows private entities to set up, manage, and operate healthcare facilities and public hospitals for a period of 3-15 years. Here are some of the highlights:

  • The cabinet will make the final decision regarding the privatization of healthcare facilities, based on Health Ministry proposals. The move will be taken only after the approval of the entity that owns the facility and reaching agreements on service pricing, a schedule of follow-ups on the facility’s progress, and a plan for transferring the facility back to state ownership.
  • The medical facility operator must continue to offer free health services to beneficiaries of the Universal Health Ins. System and in cases of disasters, epidemics, and emergencies.
  • The Health Ministry will prepare a review of health facilities targeted for privatization, alongside proposed dates for their privatization, to be regularly updated.
  • Foreign workforce: The ministry will also delineate the regulations around granting foreign doctors, nurses, and technicians licenses to work within privatized facilities.

Remember: President Abdel Fattah El Sisi ratified the hospital privatization bill back in June.

#2- A council to localize the manufacturing of chips and PV cells: The cabinet approved a draft resolution to set up the National Council for the Localization of Chip and Solar Cell Tech Production. The council will be tasked with approving the government’s strategy for localizing the manufacturing of chips and PV cells, updating the strategy as needed, and overseeing the progress of its implementation, as well as working to eliminate any obstacles for investment in the sector and reviewing related legislation. Prime Minister Moustafa Madbouly will head the new council, which will meet at least every two months.

Remember: The Madbouly government, earlier this summer, was set to launch a tender to select an international consultant to develop a strategy to localize the manufacturing of chips and PV cells.

#3- Amendments to the Maritime Trade Law got the greenlight, part of wider efforts to “transform Egypt into a global hub for trade and logistics and maximize the role of the maritime transport sector.” Some of the most significant amendments include:

  • If a vessel sinks, burns, breaks, is captured, or is lost, the owner or operator must immediately notify the Egyptian Authority for Maritime Safety or the registration office and return the registration certificate to the authorities if possible. Registration certificates should also be returned if the ownership of a given vessel is transferred to a foreigner or a foreign entity.
  • Operating an unregistered vessel flying an Egyptian flag is punishable by a prison sentence not exceeding three months and / or a fine ranging from EGP 100k to EGP 1 mn, with the ship potentially subject to confiscation. Operating a ship with an expired registration is punishable by up to one year imprisonment and / or a fine of EGP 50-500k.
  • The government must approve the construction plans and specifications of any newly built marine vessel, with construction subject to government oversight.

#4- OC-led consortium to install another 150 MW of wind power: Cabinet has approved an offer by Orascom Construction, Toyota Tsusho, and Engie to add another 150 MW of wind power capacity to its 500 MW wind farm in the Gulf of Suez. The expansion is slated for completion in 2025 and will be built on an adjacent plot of land under an usufruct contract. The new capacity will also adhere to the original agreement's terms and pricing.

Remember: The consortium broke ground on their 500 MW wind project in Ras Ghareb back in 2022, days before they signed up to build another 3-GW wind farm.

#5- Egypt Otsuka subsidiary receives golden license: Arab Otsuka Nutraceuticals, a subsidiary of pharma firm Egypt Otsuka, has been granted a golden license to establish and operate a factory for the production of nutritional products in the Tenth of Ramadan City.

#6- No mud tax for another year: The cabinet approved the suspension of the 14% agricultural land tax (known as the mud tax) for another year starting 1 August, and granted cabinet the option to extend the suspension again until July 2026. The tax has been suspended since 2017.

ALSO ON THE GOVT AGENDA-

Brace for the new and improved industrial sector: The cabinet has presented President Abdel Fattah El Sisi with a comprehensive plan to boost the industrial sector, Prime Minister Moustafa Madbouly said yesterday. The plan has three main objectives — enhancing the industrial investment environment to encourage the establishment of new factories and attract fresh investments, improving the quality of Egyptian products and increasing their competitiveness, reviving factories that shut off operations due to economic challenges and providing the necessary support for struggling factories.

SPEAKING OF- Industrial land up for grabs? The state will offer some 10 mn sqm of industrial land to investors under its plan to boost the sector, Industry and Transport Minister Kamel El Wazir said. The plots will be located in Sadat City, Borg El Arab, Sixth of October, Tenth of Ramadan, and Badr City.

AND- A plan to produce 100 mn phones a year: Madbouly has called for a plan to ramp up the annual production of mobile phones to 100 mn devices, 25% of which will be allocated for the local market the remaining 75% intended for export. Current domestic production stands at 11 mn devices, while USD 6 bn worth of phones are imported, he said, adding projects underway will increase production to 17 mn units.

Tags: