Egypt to impose import rules to shore up reserves

Egypt plans to impose new regulations that appear to be aimed at reducing low-quality imports in order to shore up its foreign currency reserves and protect local industries.

The new regulations will require that foreign factories exporting certain items -- mainly consumer goods -- register with Egyptian authorities, providing documentation of their licenses and proof of inspection. The regulations say foreign manufacturers must accept inspections by a "technical team," without providing further details.

Authorities have the right to exempt factories from some or all the registration requirements.

The decision, published in the official gazette last week, would come into effect in late February.

"It's trying to instate more discipline to imports," said Mohamed Abu Basha, an economist at EFG-Hermes. Low quality imports sold at low cost "harms the national industry," he said, adding that "most of the items they chose already have local alternatives."

Years of unrest since the 2011 overthrow of longtime autocrat Hosni Mubarak have taken a heavy toll on foreign investment and Egypt's vital tourism sector, two key sources of foreign currency.