Egypt plans to raise industrial production by 19% in FY2023/2024

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The Ministry of Planning and Economic Development aims to raise industrial production by 19 percent in FY2023/2024 to record LE4.3 trillion up from LE3.6 trillion in FY2022/2023, while the target for FY2025/2026 is LE5.74 trillion with a rise of 15 percent in comparison to the previous year.

The industrial sector in Egypt is divided into non-petroleum industries (80 percent), and petroleum industries (20 percent).

The plan includes the efficient use of resources and energy, promoting green methods of production and industries, incentivizing and financing innovations. That is in addition to localizing and upgrading promising industries such as pharmaceuticals.


20 decisions to increase industrial investment in Egypt

The Egyptian government aims to raise industrial investment rates in a
sustainable manner, deepen and localize the industry, grow local supply chains, deepen interactions.

These come within the framework of the state’s plan to increase the economic growth rate to between 7% and 9% to provide job opportunities sufficient to reduce unemployment rates.

In order to achieve this, the government took 20 decisions to stimulate industrial investment, which are:

1- Establishing a unit headed by the Council of Ministers to follow up on licenses, follow up on investors registered in the Ministry of Trade and Industry database (May 2022), and inventory the total unofficial fees that are collected from industrial complexes and for which no law has been issued, which may result in additional financial or procedural burdens.

2- The Minister of Finance issued Resolution No. (212) of 2022 suspending the payment of value-added tax on machinery and equipment imported from abroad for factories and production units for a period of one year from the date of its release (May 2022), and dropping the tax immediately after the start of production, as well as on goods or services that are exported abroad or imported by economic zone projects of a special nature.

3- Reducing the import tax on more than 150 types of production supplies and inputs to stimulate national industry (June 2022).

4- Allocating 1.1 billion pounds in the budget (2022/2023) to complete the facilities of 13 industrial complexes in the governorates, allocating 5 billion pounds to support electricity for industrial sectors, and allocating 3 billion pounds as part of huge financial incentives that were announced to deepen the automotive industry in Egypt, starting from the current fiscal year in particular to encourage the transition to using gas and electricity.

5- The government periodically follows up on the implementation of the 100 measures to stimulate investment in the industrial sector (July 2022), of which 81 measures have been implemented, according to a precise timetable, while the remaining 19 measures are under implementation.

6- Preparing a new system of procedures to facilitate the issuance of licenses for industrial facilities, in accordance with Law 15 of 2017 (July 2022), and according to these procedures, the General Authority for Industrial Development, on behalf of the investor, will coordinate with the relevant authorities to issue all approvals and permits.

7- Suspension of the real estate tax, as of January 1, 2023, for a period of 3 years for 19 industrial sectors, in accordance with Prime Minister’s Resolution No. (61) of 2022 (August 2022), at an expected total cost of about 3.3 billion pounds.

8- Issuing Law No. (153 of 2022) to exceed 65% of late fines or interest and the additional tax on arrears of taxes, customs, and real estate tax, on the condition that the original tax is paid before the end of August 2022, and the remaining 35% that has not been waived is paid no later than 1 March 2023.

9- The issuance of Prime Minister’s Resolution No. (3308 of 2022) regarding procedures for the immediate allocation of industrial lands at fixed prices according to the cost of facilities.

10- The committee formed pursuant to Prime Minister’s Decision No. (2067 of 2022) will collect, study, and take the necessary measures for the immediate allocation of the attached industrial lands to investors after they complete the required documents (September 2022), provided that the disposal of the industrial lands is based on the (ownership-usufruct) system.

11- Launching the Egyptian Industries Development Initiative “Ibdaa” [which translates to start] to support and localize national industries to rely on the local product and reduce imports (October 2022), by enhancing the role of the private sector in localizing many large, medium, small and micro industries, while providing a number of incentives in the form of Land, tax exemptions, etc.

12- 126 high-risk advance industrial licenses were issued during the period (October 2022 – February 2023) by the Industrial Development Authority. As of February 2023, 8 consulting offices were approved to evaluate facilities’ compliance with standards, and the Environmental Affairs Agency issued more than 177 environmental approvals during the period from (October 2022-February 2023), and environmental approval is issued within 7 days.

13- The state’s public treasury bore more than 590 million pounds, the value of the “Green Incentive” as part of the presidential initiative to replace vehicles (November 2022), and more than 24,000 citizens benefited from it until November 2022.

14- Launching the unified digital Egypt Industrial Platform for industrial services and licenses, which witnessed the digitization of 381 services until December 2022 that are provided electronically.

15- The Ministry of Trade and Industry prepared the National Strategy for Industrial Development (2022/2023-2026/2027), which is based on attracting investments to deepen the industry by targeting priority industrial sectors in which Egypt has a manufacturing base, opportunities and competitive advantages.

16- Preparing a list of (152) investment opportunities for industrial products that can be manufactured locally instead of importing them from abroad, based on identifying 131 customs items that can be manufactured locally. These products represent a good opportunity for companies wishing to deepen local manufacturing and reduce dependence on the products. Imported to enhance the productive capabilities of industrial facilities and improve their resources.

17- Approving a package of facilitations and incentives for industrial projects for which lands or industrial units have previously been allocated by the Industrial Development Authority (session No. 226 dated January 25, 2023), the most important of which is granting a period of 6 months to industrial projects within the implementation timetable, whether during the extraction phase.

18- Pricing industrial lands in the Republic and determining the method of dealing with them, whether through ownership or usufruct.

19- Completion of the establishment of 17 industrial complexes with 5,046 factories in 15 governorates. Procedures were also facilitated and these areas were facilitated, and the cost of connecting facilities was paid in installments so that operation could begin immediately.

20- Inventorying 49 committees of all the troubled factories, and working to solve the causes of their failure through financing, participation in marketing work, or other procedures, which led to a number of factories returning to work again, and coordination is being made with the rest of the troubled factories in order to solve their problem, as There is a unit that facilitates the establishment of industrial complexes or factories for the new investor, and facilitates obtaining licenses in light of coordination between various parties in Egypt.


Egypt adopts new strategy to increase industry’s contribution to domestic product by 20%

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The Egyptian Ministry of Industry is currently approaching the preparation of the national strategy for industry, which focuses on attracting investments to deepen the industry.

The ministry is targeting prioritizing industrial sectors in which Egypt has an industrial base, opportunities and competitive advantages at the regional and global levels.

The strategy aims to achieve a number of goals by the fiscal year 2026/2027, the most important of which is increasing the industry’s share of the GDP reaching 20% and the export growth rate reaches between 18-25% annually.

An analysis of Egyptian imports was conducted over 4 consecutive years and a number of priority industries were identified on which other industries depend.

A total of 152 investment opportunities were identified, including 92 opportunities to manufacture production requirements for the Egyptian industry to ensure the sustainability of supply chains.

This project was started by allocating 160 plots of land. Its area is about 1.252 million square meters, with an investment of 17 billion pounds, and an expected workforce of 26 thousand workers.

A number of strategic industries were identified to be granted exceptional incentives to attract global industrial entities. The value-added chains of these industries were analyzed to determine raw materials and their availability in Egypt.

The Ministry also identified new investment incentives to be granted to these industries, which include tax exemptions and the recovery of a percentage of the value of the facilities in the event of completion. of the project in half the scheduled period.


Localizing electric car industry is consistent with Egypt’s vision to reduce import bill

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President of the General Syndicate for Engineering, Metallurgical and Electrical Industries, Engineer Khaled Al-Feki, revealed that there are serious steps Egypt is taking to localize the traditional and electric car industry.

This comes within the framework of the directives of President Abdel Fattah Al-Sisi, to localize the industry locally, and thus significantly reduce the import bill.

Al-Feki, who is also a member of the Board of Directors of the Holding Company for Metallurgical Industries, added that Al-Nasr Automotive Company has a good plan to manufacture cars with a local component of no less than 45%, and this will increase gradually over the coming years until it is possible to build with the participation of an international company in Egypt to manufacture cars entirely inside Egypt, which represents an important shift. For the national industry, explaining that this matter will contribute to achieving suitable car exports to the African, European and other markets based on Egyptian trade agreements.

Al-Feki pointed out that Dr. Engineer Khaled Mohamed Shedid, Chairman of the Board of Directors of Al-Nasr Automotive Company, one of the Holding Companies for Metallurgical Industries, presented a clear vision towards manufacturing a traditional and electric Egyptian car in partnership with international companies during the company’s recent general assembly, which is a vision that is consistent with the vision of the Egyptian state and the directives of President Sisi to localize the industry.

The head of the General Union of Engineering Industries appreciated the government’s efforts towards reducing the import bill and seeking to manufacture more than 150 products that are imported by local companies, which contributes to reducing the import bill by about 40 billion dollars annually if they are manufactured locally.


Egyptian president discusses investment with Italy’s Danieli Group

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President Abdel Fatah al-Sisi received Wednesday Chairman and CEO of Italy’s Danieli Group Gianpietro Benedetti who stated that the company planned to expand its activities in Egypt.

That is by establishing green industrial complexes capitalizing on incentives offered by Egypt, recently-introduced advanced infrastructure, as well as regional and global trade agreements.

President Sisi told Benedetti that Egypt aims for the localization of different industries and technology, expressing hope that the Italian company, specialized in supplying equipment and physical plants to the metal industry, to also introduce training center for Egyptian workers.

The meeting was attended by Prime Minister Mostafa Madbouli, Minister of Planning and Economic Development Hala al-Said, Minister of Public Enterprise Mahmoud Essmat, and Chairman of the Arab Organization for Industrialization (AOI) Mokhtar Abdel Latif.


Egypt’s Sisi: Main goal of industry sector is meeting local market’s needs

“The [Egyptian] state’s biggest goal for the industry sector is to meet the needs of the Egyptian market,” said President Abdel Fattah El Sisi during the inauguration of the 2nd edition of the annual international exhibition for industry, on Saturday.

He added that Egypt seeks to support the industry sector to provide job opportunities, noting that the government also seeks to diversify the components of the local product in industries.

“We will work to establish industrial facilities, in which factories bear only the cost of the machines,” he said, noting that the government has established several industrial zones nationwide

Additionally, he said that the government will set up 100 schools for technical education nationwide to enhance the industrial sector.

“Students in schools must be taught that they are responsible for the success and development of institutions,” he continued.

President Sisi requests a minute of silence for the lives of civilian victims in Gaza, who were killed by Israeli non-stop airstrikes.

He highlighted that Qualifying the worker and increasing his awareness are important elements for bringing about a shift in the field of industry.


Egypt to enhance export rates in 7 industrial sectors

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According to an Institute of National Planning report cited by local media, Egypt is actively working to boost its export rates in seven key industrial sectors.

These sectors include computer manufacturing, electronic and optical products, and metal industries.

The report also highlighted other sectors targeted for improvement, namely chemical products manufacturing, leather products, the paper and rubber industry, the plastics industry, electrical machinery and equipment, and the food, beverage, and tobacco products industry, as well as the clothing and textile industry.

The Ministry of Trade and Industry to conduct a study aimed at localizing ten industries. These industries include railway industries, textile industry, medical device industry, and food industry, as mentioned in the report.

The manufacturing industries sector plays a significant role in employment, with over 3.4 million workers engaged in various fields, according to the report. The food industries sector accounts for the largest share of employment, representing approximately 57 percent of the workforce, as indicated by the employment index.

In July, the Information and Decision Support Center (IDSC) reported a projected decrease in the non-oil trade deficit for the second quarter of 2023. The deficit is expected to be $7.5 billion, reflecting a 9.6 percent reduction compared to the previous quarter. This decline is primarily attributed to the decrease in the value of non-oil imports.


Sports industry valued at $5B in 2023

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Sports industry is valued over $5 billion in 2023, policy advocate specialist, Phiwe Hlatshwayo, cited the global sports market report 2023.

Hlatshwayo affirmed that Africa’s sports industry has potential to drive economic growth and development.

She emphasized the transformative power of sports in shaping Africa’s future, elaborating that sports is a tool for social cohesion, equality, economic growth, and international cooperation.

Hlatshwayo highlighted during a speech, titled, “the business of sports in Africa” the economic impact of sports, citing examples like the 2010 World Cup in South Africa contributing significantly to the national GDP.

“The 2010 World Cup in South Africa contributed over $5 million to the national GDP. The 2010 World Cup also generated direct impact on labor with over that with 1000s of jobs being created through infrastructure construction, hospitality, which showed the potential for the business of sports to significantly shape Africa’s economic future,” she stated.

Hlatshwayo referred to the challenges, saying that the continent faces challenges such as lack of financing, and reliable data.

“It’s imperative that we gather pertinent data to inform decision makers bridge the talent management gap. Investing in sports education and training in schools is vital to identify and nurture young talent,” she said.

She concluded the speech by sports has the power to build hope, unity, and cohesion in Africa.

This came during a presentation on the second day of IATF2023 which is currently being held in Egypt from Nov. 9 to 15.

The IATF2023, which is the third edition of the Intra-African Trade Fair, provides a platform for businesses to access an integrated African market of over 1.3 billion people with a GDP of over $3.5 trillion created under the African Continental Free Trade Area, according to the African Union.


Qatar commits $1.5 billion investment in Egypt’s industrial sector

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Qatar is investing approximately $1.5 billion in Egypt’s industrial sector in 2024, according to Head of the Egyptian Commercial Service, Yahya Al-Wathiq Billah.

This announcement marks the first mention of Qatar’s new investments in Egypt since the agreement between the two nations in March 2022, which outlined investments and partnerships worth a total of nearly $5 billion.

Al-Wathiq Billah’s highlighted a 47% increase in trade volume between the two countries in 2022, although specific figures were not disclosed.

The Qatar Egypt Investment Forum, inaugurated by Minister of Trade and Industry Ahmed Samir, served as a significant platform for fostering economic cooperation and exploring investment opportunities between Qatar and Egypt.

The forum, attended by Qatar’s Minister of Commerce and Industry, Mohammed bin Hamad bin Qassim, showcased Qatar’s commitment to Egypt’s economic growth. Bin Qassim stated that Qatar had already invested over $5.5 billion in Egypt’s financial, real estate, and energy sectors.

During the event, Saud Omar Al Mana, the CEO of the Qatari Al Mana Group, made a notable announcement. Al Mana revealed plans to inject initial investments totaling approximately $60 million into the Egyptian market throughout 2024.

The investments from Qatar are expected to have a substantial impact on Egypt’s industrial sector, promoting growth and creating new job opportunities.


Italian Mapei completes first phase of its $25M factory

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Italy’s Mapei invests about $25 million to establish a factory in Egypt with a production capacity of up to 100 thousand tons annually. This came during Prime Minister Mostafa Madbouly’s inspection of Mapei’s factory during his tour to visit factories on the 10th of Ramadan City and El Obour City.

The Regional Area Manager Middle East & East Africa at Mapei, Andrea Perini said that the factory extends over an area of 28,000-meters established on two stages with a total investments of 25 million dollars stating that the first stage of the factory was finished. The factory is scheduled to open next year.

Perini asserted that the factory employed 100 workers, highlighting that the production capacity of the factory is 100 tons annually.

Madbouly highlighted Egypt’s keenness to deepen local production and encourage and empower the private sector, pointing out that the Egyptian market is huge and encourages pumping investments in it.

Earlier this year, The Central Agency for Public Mobilization and Statistics (CAPMAS), said that the trade volume between Egypt and Italy increased in 2021 by 29 percent to reach $5.8 billion compared to $4.5 billion recorded in the previous year.

Moreover, Italian investments in Egypt increased by 40.3 percent during the first quarter of the financial year of 2021/22, reaching $448.8 million.