Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

The Role of the Ministry of Military Production in the Economic Development Op-ed


Wed 26 May 2021 | 12:57 AM
H-Tayea

The Ministry of Military Production (MOMP) has an important economic role in deepening domestic industry, recording significant contributions to the Egyptian economy.

The MOMP is established on October 23, 1954, and it is regarded as the primary source of armament for the Egyptian Armed Forces and it seeks to serve the economy and support developmental projects within the framework of Egypt's Vision 2030. It is worth mentioning that the Ministry of Military Production has achieved an increase in its revenues of EGP 15.5bn in fiscal year (FY) 2019/20, compared to EGP 13.2bn in FY 2018/19. Bearing in mind the Performance indicators showed consistent achievements.

The MOMP supports the economy and society during challenging times, contributing effectively in promoting domestic industrialization, bolstering competitiveness and productivity of domestic supplies of essential commodities for the society, depending on the highest standards of technological techniques and sophisticated experiences in multiple industries.

Notably, the armed forces' economic activities vary from supplying food commodities, carrying out infrastructure projects, and producing perse goods, equipment and raw materials.  The ministry has participated in the implementation of many national projects in cooperation with other ministries, authorities, and governorates. The ministry’s cooperation and participation in the ongoing national projects is significant and complementary to its main and basic tasks with respect to the military’s production of products of the armed forces. Noting all military production projects dedicated to the welfare of society and the national economy, as well as export development and manufacturing.

The Ministry of Military production (MOMP) led a vital role in overcoming the challenges that had threatened the peace of society especially during the period between 2013- 2014by securing the needs of the local market of industrial products (i.e. electricity, food, home appliances), exporting surplus production, developing the national economy and deepening the Egyptian industrialization, as well as upholding military products to cover the needs of the Armed Forces.

It is worth mentioning that the services provided by the ministry are expanded over time to cover the production of civil products besides its main production of military products depending on utilizing its experiences in manufacturing to provide civil products with high quality at reasonable prices which assist widely in supplying of essential commodities.

In the meantime, there is a significant contribution of Ministry to attaining the sustainable developments goals 2030 through having comprehensive coordination between other ministries and governmental institutions in different sectors, stressing that the ministry aims to optimize national resources and contribute to achieving the sustainable development goals as well as enhancing the public services. Moreover, MOMP is fostering partnerships with the private sector and the federation of Egyptian industries due to the remarkable share of the private sector that constitutes 80 percent of the Egyptian economy which make it one of the main drivers of development. Therefore, it is of vital necessity to have complementary cooperation between both private and public sectors.

Among the various efforts that the Ministry of Production is working on; the development of domestic production according to the international standard levels through boosting cooperation with major global companies as well as the private sector.

In order to benefit from their experiences and sophisticated technologies in improving the quality of production and increasing the capacity of productivity to build a competitive value chain of production which will result in fostering the competitiveness of Egyptian exports in the context of import substitution industrialization (ISI) Policy.

Moreover, advancing the Scientific Research and Information Technology; in this regard, the ministry of military production cooperates with the Ministry of Higher Education in terms of applying the scientific research and exploring new technologies in industrialization. One of the main achievements is the production of smart meters to be totally 100 percent Egyptian which are under the experimental procedures at the Ministry of electricity.

Meanwhile, the Egyptian government starts to manufacturing electric cars that can be charged from homes in the beginning and after that, the manufacturing will be expanded to cover public buses, means of transportation, and large vehicles. It is noted that electric cars will be cheaper than imported ones and will contribute to boosting energy efficiency.

In addition, the ministry seeks to consolidate ties with international universities, dispatching Egyptian scholars abroad which is essential in transferring advanced technologies and thus, coping with the 4th Industrial revolution.

The major achievements accomplished Germany's PSE Company contracted with MOMPY to carry out a technical and economic feasibility study on two solar power projects with a total capacity of 1 gigawatt per year.

Noteworthy, the cooperation between the Egyptian Authority of Railway, Ministry of Transports, and MOMP in terms of deepening the Egyptian industrialization in railways as follows.

The development of 150 railways’ crossing, German-based factory of Bombardier did a comprehensive feasibility study, recently, on one of the Egyptian factories and agreed to manufacture locomotives in Egypt. Noteworthy that the partnership between MOMP and Bombardier focuses on manufacturing locomotives through MOMP's specialized factories and the 200 Military Plant in addition to setting up a maintenance center for refurbishing and modernizing vehicles of the Ministry of Transports and Railway Authority. In fact, the partnership aims also at turning Egypt into a regional hub for the manufacturing, repairing, and exporting locomotives and train engines to African, Arab, and European countries.

It develops a strategy for boosting the electric car industry in Egypt,

a seawater desalination plant with a vertical system is being implemented at Ain Sokhna to produce 10,000 cbm of desalinated water per day, and sell water at a lower price.

In addition to the agreement with a British consortium to establish a joint project to produce energy from waste implemented. Furthermore, around of 192 national and development projects have been implemented as a new industrial addition for Egypt’s current capacities. These projects, worth a total of EGP 25bn and have been set up in the fields of electricity and energy, water purification and treatment, communications and information technology, construction, facilities and roads, transportation, local development, water resources and irrigation, agriculture and reclamation, and tourism and antiquities.

to establish a number of new industrial companies working in the field of solar panels cell production, starting with Egyptian quartz, producing car tires, electric buses, natural gas cylinders, and stations for water purification using “ZLD” technology. In addition, a factory for artificial turf was inaugurated with the participation of the Ministry of Youth and Sports, with certified international specifications and conforming to FIFA specifications. A factory for electric elevators has also been started

Building on these achievements, it becomes quite critical to continue the roadmap of such significant contributions, keep consolidating coordination between the strategies of Ministries, governorates, private sector as well as other governmental institutions, which would boost success in achieving the main goals of developments, bolstering productivity and competitiveness of Egyptian exports.