Egypt to launch fund to support industrial, production sectors

CAIRO - 3 December 2024: Egypt’s Ministry of Industry, in collaboration with the Central Bank of Egypt (CBE), is set to launch a financing fund aimed at supporting key production sectors, with a primary focus on the industrial sector, according to a statement issued by the ministry.  

 

Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel El-Wazir, stated that the ministry is coordinating with the CBE to identify priority production sectors eligible for financial support. This initiative aims to secure the necessary resources to meet the pressing needs of these industries.  

 

The ministry has received a request from the Federation of Egyptian Industries (FEI) to provide funding of up to LE 7.8 billion. The proposed funding will be allocated to pharmaceutical, engineering, construction materials, textile, food, and chemical industries.  

 

Sherif El-Gabaly, Chairman of the Chamber of Chemical Industries at the FEI, confirmed that the chamber submitted a detailed report on companies requiring financing, with disbursements expected soon, based on assurances from the ministry.  

 

TEXTILE AND GARMENTS INDUSTRY IN FOCUS 

 

Chairman of the Ready-Made Garments Chamber, Mohamed Abdel Salam, noted that approximately 1,500 companies in the garment sector urgently need funding to purchase modern machinery and equipment. This initiative, along with the CBE’s 15 percent industrial support program, is expected to address financing needs across the industrial sector.  

 

He added that the global shifts in export markets, particularly Turkey’s reduced competitiveness due to rising labor costs, position Egypt’s textile and garment industries as prime contenders for export growth.  

 

Meanwhile, Executive Director of the Chamber of Metallurgical Industries,  Mohamed Hanafy, emphasized that the metallurgical sector requires substantial funding. However, he expressed concern over its exclusion from the priority list for financial support.  

 

This initiative reflects Egypt’s ongoing efforts to bolster industrial production and enhance the global competitiveness of its domestic sectors.