Egypt has unveiled a strategic plan to localize 23 high-priority industries. The initiative, announced by Deputy Prime Minister and Minister of Industry and Transport, Kamel El-Wazir, is set to turbocharge Egypt’s economic engine by tapping into locally available raw materials and reinforcing the country’s import substitution strategy.
During a meeting with industrial investors in El Sharqia Governorate, El-Wazir outlined the diverse sectors targeted for development. These include solar energy components, vehicle tires, batteries, wind energy components, water desalination and treatment systems, and infant formula. Other sectors on the list are aluminum, electrical transformers, seamless pipes, water pump motors, appliance motors, polyester manufacturing, soda ash, electric motors, generators, water filtration systems, electrical tools, control and distribution panels, central air-conditioning chillers, elevators and escalators, audio and surveillance systems, submersible water pumps, and automotive glass. The selection of these industries underscores their substantial demand in the Egyptian market, as well as, Regional markets offering a golden opportunity for localization to propel economic growth, generate employment, and boost the trade balance.
El-Wazir highlighted the Egyptian government’s commitment to fostering a self-reliant industrial ecosystem. This vision involves leveraging the country’s abundance of natural resources and promoting the establishment of new factories to cater to both domestic and international markets. To this end, the government is offering a suite of incentives and simplified investment procedures to entice stakeholders and expedite the localization process. The government reassured investors of its intent to fortify all industrial zones with essential infrastructure, thus eliminating potential construction and operational delays. El-Wazir encouraged investors to resolve any outstanding financial obligations and take advantage of newly introduced payment plans to mitigate risks of land or unit relocation. In a move toward transparency and efficiency, unutilized plots in industrial zones will be prominently listed on the Egypt Industrial Digital Platform.
Furthermore, the government plans to cultivate a sustainable management vision for industrial zones by forming alliances with investor associations. These associations will play an instrumental role in overseeing maintenance, security, and service provision, financed through tenant fees. This initiative aims to craft a nurturing and sustainable environment conducive to industrial expansion.
Egypt remains a unique destination for industrial investments due to low cost labor, large market, Regional trade agreements delivering major added value for exports, supported by a newly established infrastructure and transport network to serve. The unique features are supported in full by the Government’s commitment to rapid problem-solving by proposing immediate solutions and issuing directives to hasten resolution, thereby bolstering investor confidence and accelerating industrial development.