The National Supplier Development Programme (NSDP), launched last week by the Ministry of Foreign Trade and Industry in cooperation with the Industrial Modernisation Centre (IMC) and Commercial International Bank (CIB), aims to upgrade domestic supplies to local manufacturers, reports Niveen Wahish The programme will initially target 35 local suppliers of manufacturing companies in Egypt, though eventually the scheme will cover suppliers nominated by 100 manufacturing companies. In the first stage 215 suppliers have been selected, representing sectors with export potential. The goal is to help small and medium- sized enterprises (SMEs) that currently supply the domestic market become more export- oriented and, as a result, gain a firm foothold in existing global supply chains. The programme should result in an estimated 50,000 new jobs, attract LE15 billion in investments and result in a doubling of exports across the sector to LE8 billion. It should also, says Rachid Mohamed Rachid, minister of foreign trade and industry, help change the defensive attitudes of manufacturers long protected by tariff barriers. If successful the programme will result in a broad base of SMEs supplying larger manufacturing companies that will in return help with financing and marketing. As suppliers complete the upgrade and meet the required standards they will enjoy greater access to global sourcing networks. "At a time when we are liberalising our market the competitivness of industry is vital," says Galal El-Zorba, chairman of the Federation of Egyptian Industries. He hopes the project will result in more manufacturers sourcing locally rather than resorting to imports. The IMC -- which will provide technical assistance and manage the programme -- has earmarked LE200 million for the project, covering 85 per cent of total costs. CIB will act as financial consultants, providing risk assessment and help accessing credit, though Rachid hopes the scheme will eventually encourage more banks to become involved with SMEs.
