Latest news with #industrialcapacity
Zawya
6 days ago
- Business
- Zawya
Egypt: GAFI chief highlights tax incentives, licensing reforms to boost mining investment
Egypt - Hossam Heiba, CEO of the General Authority for Investment and Free Zones (GAFI), affirmed that Egypt's strategy to raise the mining sector's contribution to 5% of GDP focuses on deepening industrial capacity, establishing value-added chains within mining industries, and expanding logistics services, including shipping, transport, storage, and supply chain management. His remarks came during the Egypt Mining Forum 2025, held under the auspices of the Ministry of Petroleum and Mineral Resources, with the participation of prominent local and international stakeholders. Heiba emphasised that the mining sector has long represented a strategic partnership between the government and the private sector. In recent years, the Egyptian government has prioritised enhancing the sector's competitiveness through targeted investment incentives and infrastructure development, recognising the country's significant mineral potential. The GAFI chief detailed the incentives offered under the Investment Law for mining institutions, most notably the right to recover up to 50% of investment costs via tax deductions over a period of seven years from the project's commencement. Furthermore, mining projects can apply for the Golden Licence, which consolidates all required approvals and permits into a single licence issued within just 20 working days. Heiba also highlighted a range of investment systems tailored to mining projects, including special free zones and dedicated investment zones, which enable investors to complete all licensing procedures in one location. He noted that GAFI now hosts Egypt's digital company registration platform and the unified investment licensing platform, adding that the digitisation of services has significantly streamlined processes and supported growth in the mining sector in recent years. © 2024 Daily News Egypt. Provided by SyndiGate Media Inc. (
Bloomberg
04-07-2025
- Business
- Bloomberg
Iron Ore Gets Second Weekly Boost on Hopes of Supply-Side Reform
Iron ore headed toward the highest close since May as China 's renewed focus on supply-side reform lifted expectations for the country's steel market. Futures of the steel-making ingredient were on course for a second weekly gain as prices rose back above $96 a ton. Beijing's top leaders this week vowed to curb outdated industrial capacity, which could boost prices of raw materials due to the potential positive impact for steel-mill margins.
Yahoo
02-07-2025
- Business
- Yahoo
China Communist Party magazine calls for crackdown on price wars
HONG KONG (Reuters) -A prominent Chinese Communist Party publication called for a crackdown on forms of competition that fuel price wars and squeeze profits in various industries, criticising big firms and local governments for unfair practices. In the most strongly-worded Communist Party warning yet on the risks of industrial overcapacity, the Qiushi article on Tuesday said the phenomenon brings "enormous waste of social resources," and unsustainable debt that could endanger long-term growth. The article, written under a pseudonym, focused on "involutionary competition" in which it said firms and local governments invest vast amounts of capital to chase market share in an environment of limited demand, while failing to achieve revenue growth. It singled out industries such as photovoltaics, lithium batteries, electric vehicles, and e-commerce platforms. To cut costs, some companies compromise on product quality, Qiushi said, disincentivising innovation and investment in research and development and harming consumer interests as "bad money drives out good money." Other firms are using resources to expand capacity, while delaying payments to suppliers and contractors, squeezing the entire industrial chain. E-commerce platforms compete on prices by using their advantageous position to transfer pressure on the merchants using them to get through to customers, Qiushi said. The magazine also offered some rare criticism of local officials, accusing them of both "absence and overreach." Officials should step in more as regulations have not kept up with the development of new industries and business models, it said. Bankruptcy mechanisms are also "imperfect," preventing curbs to excessive supply. On the other hand, some local governments, focused on short-term growth, attract investment by "artificially creating policy havens" with preferential taxes, fees, subsidies and land use, as well as protectionist measures. Many economists have warned Beijing for years that high levels of state-guided investment and subdued domestic demand - caused in part by a feeble social safety net and deep rural-urban inequalities - leave China overly dependent on exports for growth, and pose debt and deflation risks similar to what Japan experienced in the 1990s. Qiushi did not mention deflation, but warned that China might suffer from "development model path dependence" and needed supply-side reforms that reduce excess industrial capacity and a strategy to expand domestic demand. It warned, however, that this would take time. "Rectifying 'involutionary' competition is a complex systematic engineering project that cannot be accomplished overnight or with a single decisive move," the magazine wrote. (Writing by Marius ZahariaEditing by Shri Navaratnam)
