Latest news with #TrainingandQualificationFund
Daily News Egypt
26-05-2025
- Business
- Daily News Egypt
Egypt completes first comprehensive review of non-tax fees to reduce investor burdens, increase transparency
Minister of Investment Hassan El-Khatib announced a major milestone in Egypt's ongoing economic reform agenda: the completion of the country's first comprehensive inventory of non-tax fees and financial obligations imposed on investors. Speaking at the US–Egypt Policy Leaders Forum 2025 on Sunday, he described the initiative as a key step toward easing business costs, promoting transparency, and fostering a more supportive investment environment. El-Khatib emphasized that the forum serves as an essential platform to strengthen economic ties between Egypt and the United States and to build new bridges of cooperation in a rapidly evolving global landscape. He highlighted the transformation Egypt has undergone over the past decade, particularly in infrastructure development. The establishment of new cities, expanded road networks, upgraded ports and airports, and ambitious energy projects have all contributed to a more competitive and attractive landscape for both local and foreign investment. He noted that the government's focus on clear and stable macroeconomic policies is central to its strategy to attract investment. A comprehensive package of fiscal, monetary, and trade reforms is currently being implemented with the dual goal of enhancing transparency and driving economic growth. Among the most significant of these efforts is the newly completed inventory of non-tax fees, which aims to clarify financial obligations, enhance governance, and reduce hidden costs that have traditionally burdened investors. El-Khatib explained that this reform will be implemented in two phases. The first phase targets financial burdens imposed across all sectors, including amendments to contributions such as those required by the Training and Qualification Fund. These fees, previously set at one percent of net profit, have been revised under the newly issued Labour Law to one-quarter of one percent of the minimum insurable wage. The social solidarity contribution, another key element, will now be calculated based on net profits rather than revenues. The specific percentage is currently under discussion with relevant authorities and will be announced soon. The second phase of the reform focuses on reorganizing and reducing the overall structure of non-tax financial obligations. It seeks to redefine the financial relationship between the state and investors by clearly outlining their respective rights and responsibilities throughout the entire investment period. To further support the investment climate, El-Khatib announced that a temporary investment licensing platform will be launched in the coming days, offering 389 digital services and licenses. This interim platform will be followed by the rollout of the 'Economic Entities' platform, which will streamline procedures across the entire lifecycle of a project—from establishment and licensing to operational activities. El-Khatib also addressed Egypt's foreign trade goals, affirming the government's commitment to doubling exports and increasing their contribution to GDP to 20 percent. As part of this effort, the Ministry of Investment is working closely with the Ministry of Finance to reduce customs clearance times from 14 days to just two days by the end of 2025. This ambitious target will be supported by the implementation of 29 joint measures designed to enhance supply chain efficiency and facilitate the movement of goods. The government is also actively working to eliminate non-tariff barriers that hinder trade. Trade procedures are being simplified and aligned with international standards to ensure smoother and faster flows of goods across borders. Notably, the recent approval of US safety standards for imported vehicles into Egypt marks a significant regulatory shift, expanding choices for Egyptian consumers and improving market access for international automakers. In line with Egypt's push to modernize trade regulations, El-Khatib highlighted the cancellation of the requirement for halal certification on imported dairy products, a move that aligns with global practices and has been positively received by Egypt's trading partners. To increase competition and reduce costs, the government has also opened registration for new entities authorized to issue halal certificates. Furthermore, a study is underway to reduce conformity assessment fees for food products and production facilities, easing the financial burden on exporters and encouraging fair and open access to the Egyptian market. Beyond regulatory reforms, El-Khatib spoke about Egypt's strategy to optimize public asset management through the country's Sovereign Fund. He revealed that a plan is in motion to transfer a package of state-owned assets to the fund. This transfer aims to unlock greater economic value, maximize returns, and ensure more efficient management of national resources. The Sovereign Fund of Egypt will take on a central role in overseeing the state's asset portfolio and increasing its economic returns. El-Khatib concluded by underscoring Egypt's key competitive advantages, which include its strategic geographic position connecting Africa, Asia, and Europe; free trade agreements with more than 70 countries; advanced infrastructure networks; and a young, skilled labour force of over 31 million people. Together, these factors place Egypt in a strong position to attract long-term investment and serve as a regional hub for trade and economic growth.
Egypt Today
14-05-2025
- Business
- Egypt Today
Egypt's new labor law regulates training, links education to the labor market.
Labor Law - file CAIRO - 14 May 2025: Egypt's new Labor Law includes a comprehensive chapter regulating training, qualification, and employment, where it covers trainees, persons with disabilities, and apprenticeship workers. It also establishes controls for the operating mechanisms of training centers and the licensing of trainers. The legislation also ensures that education is linked to the labor market through a Higher Council for Skills Development and an independent fund, within the framework of the state's plan to develop human resources and achieve occupational justice. Article 15 of the law stipulates that the provisions of this chapter apply to all training centers subject to the provisions of the law, as well as to those seeking training, persons with disabilities and dwarfs, vulnerable groups, trainees, those seeking higher or continuing qualification, and apprenticeship workers. Article 20 stipulates that the Training and Qualification Fund shall operate at the national level, in line with the needs of sectoral employer organizations established by law. It shall be responsible for providing the following services: 1. Financing human resource skills development and vocational and technical training through the establishment and development of training centers, the preparation and implementation of training programs, and the necessary skill and competency guides. 2- Financing development projects that target human resource skills development, linking education and training outcomes to current and future labor market needs, and coordinating with sectoral skills councils. 3- Establishing the terms and conditions for regulating funding operations. 4- Monitoring and evaluating the implementation of all funded projects. The Prime Minister shall issue a decision to form the Fund's Board of Directors, chaired by the relevant minister and including representatives of trade union and employer organizations, equally, and representatives of relevant ministries and authorities. The decision shall also specify the Fund's other powers, its operating system, and the financial treatment of the Chairman and members of the Board of Directors, provided that they are derived from the Fund's own resources. The Fund's branches in the governorates, its bylaws, its resource collection system, and the accounting system to be followed. The Fund's Board of Directors may use private law means to achieve its objectives and exercise its powers. Article 21 specifies the fund's resources, including 0.25% of the minimum insurance wage for workers in establishments with 30 or more workers, with a minimum of EGP 10 and a maximum of EGP 30 per worker, borne by the establishment annually. Resources also include accepted donations and returns on investment of the fund's funds. The fund will have an independent account and will be subject to oversight by the Central Auditing Organization.
