Egypt’s Push for Industrial Growth: Central Bank and Government Support for Producers

By fostering local industrial production, attracting investments, and supporting green energy initiatives, Egypt is laying the groundwork for sustainable economic growth and global competitiveness.

In a pivotal move to strengthen Egypt’s industrial landscape, the Central Bank of Egypt (CBE) has announced plans to establish a fund dedicated to supporting producers across various sectors. This initiative marks a shift in financial focus from consumer financing to industrial growth, signaling a significant step toward bolstering Egypt’s economic development.

Egypt financing for industrial excellence

Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, emphasized Egyptian banks’ commitment to financing production and industrial facilities. Collaboration between the Ministry of Industry, the Ministry of Finance, and the CBE is central to identifying priority sectors and allocating resources effectively. Under the 15 percent industrial financing initiative, loans totaling EGP 7.776 billion have been requested by key industrial players.

Priority industries include pharmaceuticals, engineering, building materials, textiles, food, and chemicals, as recommended by industry chambers. This targeted approach aims to enhance the productivity and competitiveness of Egypt’s industrial sector.

Supporting strategic industries

During the 12th ministerial meeting for industrial development, officials reviewed requests from companies seeking protection from unfair trade practices. Measures such as reducing customs duties on production inputs relative to finished products are under consideration, with the Customs Distortions Committee exploring viable solutions.

The government also reaffirmed its support for localizing automotive component manufacturing, including tires, glass, and batteries, to reduce import dependence. Plans include:

• Developing a tire manufacturing city in Ain Sokhna in partnership with a leading Chinese company.
• Upgrading the Nasr Tire factory in Alexandria with European collaboration, targeting production within two years.
• Establishing a car tire factory in Amreya with a Chinese partner.
• Partnering with a UAE firm to produce solar panel glass.
• Manufacturing batteries for minibuses through Nasr Automotive.

Advancing green energy and sustainability

The meeting also addressed renewable energy, with a focus on green hydrogen production. Challenges such as industrial land availability and electricity provision were discussed, alongside the activation of the Energy Planning Unit under the Supreme Council of Energy.

The Suez Canal Economic Zone highlighted its progress in green hydrogen projects, demonstrating Egypt’s commitment to renewable energy and sustainable industrial practices.

Strengthening investment incentives

To boost investor confidence, the government pledged to expedite the settlement of exporters’ dues from the Export Support Fund. A new system will facilitate claims settlement with government entities, ensuring timely reimbursements.

Additionally, modernization efforts are underway for the aluminum factory in Nag Hammadi, set to commence in 2025. This project aims to meet domestic demand and reduce reliance on imports, solidifying aluminum’s role in Egypt’s industrial strategy.

Ensuring compliance and market stability

To curb market disruption, Al-Wazir directed the unified factory inspection committee to address violations, including recommendations for closures. Enhanced inspection collaboration, with potential involvement from the Food Supply Police, aims to enforce compliance and maintain fair market practices.

Driving Egypt’s industrial future

These coordinated efforts between the Central Bank of Egypt, government ministries, and industry stakeholders reflect a unified vision to transform Egypt into an industrial powerhouse. By fostering local production, attracting investments, and supporting green energy initiatives, Egypt is laying the groundwork for sustainable economic growth and global competitiveness.

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