Cairo, Egypt – (African Boulevard News) – Private-sector cement producers in Egypt are anxiously awaiting the renewal of cement quotas, which have been in force since July 2021. These production restrictions have provided a lifeline to private-sector players in a sector plagued by overproduction and intense competition.
The cement industry in Egypt has experienced a boom in recent years, with an abundance of cement production facilities. However, this has led to an oversupply in the market, resulting in lower prices and reduced profit margins for producers. To address this issue, the government implemented quotas to regulate production and stabilize the market.
The quotas have had a significant impact on private-sector producers, as they allow for a fairer distribution of market share and ensure a level playing field. By limiting the amount of cement that can be produced, the government aims to prevent a further decline in prices and ensure the sustainability of the industry.
Industry experts acknowledge the positive effects of the quotas on private-sector producers. Ahmed Hassan, a cement industry analyst, states, “The quotas have provided a much-needed relief for private-sector producers who were struggling to compete with larger state-owned companies. It has allowed them to maintain their market share and protect their profitability.”
However, there is a sense of urgency among private-sector producers as the current quotas are set to expire soon. They are eagerly awaiting the government’s decision on whether to renew the quotas and, if so, what the new limits will be.
The renewal of cement quotas will have a direct impact on private-sector producers’ production plans and investments. It will also determine their ability to compete in a highly competitive market.
“The renewal of quotas is crucial for the survival of private-sector producers,” says Hisham Abdel-Rahman, CEO of a leading cement company. “Without the quotas, we will face an onslaught of overproduction, which will lead to a further decline in prices and put many producers out of business.”
There is optimism among private-sector producers that the government will renew the quotas, given their positive impact on the industry. However, they hope that the renewal process will be transparent and considerate of the private sector’s needs.
In conclusion, the private-sector cement producers in Egypt are eagerly anticipating the renewal of cement quotas, which have provided much-needed stability to the industry. The quotas have leveled the playing field and protected private-sector players from the adverse effects of overproduction. With the new quotas soon to be announced, private-sector producers hope for a fair and sustainable allocation that will enable them to continue competing in the market.
