CAIRO - 15 December 2024: Egypt has unveiled its plans to localize 23 high-priority industries as part of its broader strategy to enhance industrial development and reduce reliance on imports. Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel El-Wazir, announced the initiative during a meeting with industrial investors in El Sharqia Governorate. The targeted industries, critical to Egypt’s economic growth, rely on locally available raw materials and are integral to the country’s import substitution strategy.
The identified sectors include solar energy components, vehicle tires, batteries, wind energy components, water desalination and treatment systems, infant formula, 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. These industries represent a significant portion of Egypt’s imports, offering substantial opportunities for localization to strengthen the economy, create jobs, and improve trade balance.
El-Wazir emphasized the urgency of advancing industrial localization by offering incentives and streamlining investment procedures for stakeholders. He highlighted the government’s goal of establishing a self-sufficient industrial ecosystem that utilizes Egypt’s natural resources, supports the creation of new factories, and bolsters local production to meet domestic and international demand.
The meeting, held at the Industrial Development Authority (IDA) headquarters, also addressed infrastructure development and challenges faced by industrial investors in Sharqia. The government pledged to equip all industrial zones with essential infrastructure to prevent delays in construction and operations. El-Wazir reaffirmed President Abdel Fattah El-Sisi’s directive to complete utility installations for ongoing projects by August 2024, enabling swift establishment of new factories in the prioritized sectors.
Investors were urged to settle any outstanding financial obligations or take advantage of new payment plans to avoid risks of land or unit reallocation. Additionally, unutilized plots in industrial zones will be transparently listed on the Egypt Industrial Digital Platform, promoting efficiency and openness.
The government outlined a sustainable vision for managing industrial zones by fostering partnerships with investor associations. These associations will oversee maintenance, security, and service provision, funded through tenant fees. The initiative aims to create a supportive and sustainable environment for industrial growth.
During the meeting, El-Wazir tackled pressing issues raised by investors, including gas supply shortages, land allocation disputes, and safety compliance costs. Immediate solutions were proposed, with directives issued to expedite resolutions, demonstrating the government’s commitment to addressing investor challenges and accelerating industrial development.
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