Industrial growth accelerates in Q1 FY2025 with 7.1% growth in manufacturing sector

Cairo – January 21, 2025: Egypt’s manufacturing sector grew by 7.1 percent during Q1 of FY2024/2025, driven by the implementation of measures to expedite the customs release of goods and products at ports.

Development financing directed to the private sector surpassed government development financing by 35 percent during Q1, underscoring the success of economic reforms aimed at empowering the private sector to drive growth, according to a cabinet statement.

At the 16th meeting of the Ministerial Group for Industrial Development, chaired by Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, several key issues affecting the industrial sector were discussed.

The deputy prime minister stressed the need for stricter monitoring of copper scrap exports to prevent circumvention of export bans to ensure sufficient supply for local manufacturing needs.

One of the key topics discussed was the issue of power fluctuations in the Obour Industrial Zone. El-Wazir emphasized the importance of maintaining electrical panels in factories and proposed involving officials from the Ministry of Electricity in industrial zone inspection committees to ensure the safety and efficiency of electrical systems.

A number of complaints from manufacturers were also reviewed, including the impact of new regulations on dietary supplements; the Egyptian Drug Authority's decision to regulate the storage of supplements has raised concerns among 35 affected factories. El-Wazir directed the formation of a working group to resolve the issue and streamline regulatory oversight for the industry.

The Arab Organization for Industrialization also showcased its efforts to localize mobile phone manufacturing in Egypt, in partnership with Talal Abu-Ghazaleh Technology. The initiative, which includes establishing production lines for mobile phones, tablets, and laptops, aims to enhance Egypt's technological capabilities and increase the local production of mobile phone components.