Rules & Regulations

Public sector procurement in Egypt is centralized at the procurement agency of MoH for hospitals, health units. University hospitals are under the authority of the Ministry of Education[1].

Egyptian law requires foreign companies bidding on public tenders to retain Egyptian commercial agents. U.S. companies find it beneficial to engage a local agent to handle communications, bureaucratic procedures, local business practices, and marketing. A U.S. company can appoint multiple agents in Egypt based on geographical location or product basis to further enhance its success. Agent commissions vary depending on the services provided and the value of the contract.

Supplying reliable after sales service as well as spare parts and maintenance services is key to maintaining a competitive advantage. Agents of medical equipment have found that keeping approximately 40 percent inventories of spare parts will satisfy the needs and demands of their clients. FDA approval is key to having medical products registered and approved by the MoHP in Egypt, although the MoHP may still do additional testing on any medical device. The importation of used and refurbished medical equipment and supplies into Egypt is banned without prior approval of the MoHP[2].

Public Sector Procurement

Public sector procurement in Egypt is both centralized and decentralized. The public sector procurement is centralized under the responsibility of a procurement agency which is part of MoH46. It is centralized for hospitals, health units and Medical Convoys of MoH. The national procurement agency is not responsible for the procurement of university hospitals which follow the Ministry of Higher Education. Public sector request for tender documents are publicly available and public sector tender awards are publicly available. Procurement is based on the prequalification of suppliers47. A team from the procurement department made an inspection visit in 2007 to different drug suppliers. According to this prequalification criteria then fed the data in a database in IT of MoH. Any supplier must fill the required criteria in this database before the application to a procurement process and any changes or addition regarding their data collected in this database.

The public sector procurement policy was approved in 1998. Legal provisions exist that give priority to locally produce goods in public procurement. The key functions of the procurement unit and those of the tender committee are not clearly separated. A process exists to ensure the quality of products that are publicly procured. The tender methods employed in public sector procurement include national competitive tenders[3].

[1] http://www.tforg.com/bi-store/store/deep-dive-healthcare-system-medical-device-market-egypt-report-incl-surgical-procedures/

[2] http://export.gov/industry/health/healthcareresourceguide/egypt084183.asp

[3] Egypt Pharmaceutical Country Profile, pp.32-33.