Egypt's industrial sector: The road till 2030

Egypt is embarking on an ambitious plan to transform its industrial sector, aiming to increase its contribution to the country’s gross domestic product (GDP) from 16% to 20% by 2030. This initiative, spearheaded by Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir, is part of a broader strategy to enhance economic growth and sustainability.

Strategic pillars for industrial growth

Minister El-Wazir has outlined a comprehensive seven-pillar strategy to achieve this ambitious goal. The strategy focuses on reducing reliance on imports by encouraging domestic manufacturing and attracting foreign investors. A key component is expanding the industrial base to boost exports, particularly in green and electronic industries, while improving the technical specifications of Egyptian products.

A crucial aspect of the plan involves rescuing struggling factories. The government intends to provide swift approvals for restarting these facilities, listen to owners of idle factories to find viable solutions, and offer technical support to improve capabilities and achieve international certification standards.

Additionally, the strategy emphasizes the importance of workforce development. By leveraging the ministry's training entities, research centers, and universities, the aim is to qualify the workforce, ultimately enhancing the quality and export potential of Egyptian industries.

Phased implementation plan

The plan will be executed in two phases. The first phase focuses on immediate actions to address the challenges faced by struggling factories. This includes the launch of the "Your Factory Always Works" initiative, encouraging struggling factories to present their issues to the ministry for resolution. An "Industrial Digital Egypt" platform will be introduced to streamline procedures for investors, along with an "Investor Service and Support Office" to facilitate licensing processes.

The second phase will target attracting both foreign and domestic investments, with an emphasis on cooperation with the private sector. Major projects will focus on developing industrial zones to the highest international standards. Efforts will also be made to ensure product quality, opening up export markets and fostering industrial growth in governorates and villages under the "Egypt's Industrial Map" initiative.

Expanding job opportunities

One of the most significant aspects of the plan is the promise to double job opportunities in industrial complexes for small and medium-sized projects. The goal is to employ 7 million workers by 2030, up from the current 3.5 million. This will be achieved by training and qualifying technical labor to meet factory needs through the Productivity and Vocational Training Department (PVTD) and the Technology Competency Centre (TCC).

The ministry is also exploring partnerships with the private sector to manage vocational training centers. These centers will grant industrial apprenticeship diplomas, ensuring graduates are well-equipped to meet industry demands. Coordination with relevant government ministers is also planned to increase the number of applied technology schools across the country.

Government commitment and coordination

Prime Minister Mostafa Madbouly has underscored the government's commitment to enhancing the industrial sector. The first meeting of the Industrial Development Ministerial Group, chaired by Madbouly, highlighted the significance of industrial development in line with President Abdel Fattah Al-Sisi’s directives. The group will monitor recently approved industrial projects to ensure timely implementation and operation.

Deputy Prime Minister El-Wazir presented the group's work plan, which includes formulating and implementing the National Industrial Development Strategy and stimulating direct private investment in the industrial sector. Weekly meetings will be held to ensure continuous progress.

Streamlining industrial processes

Efforts are being made to streamline the process of obtaining industrial licenses. The goal is to remove obstacles and facilitate the establishment of new factories, as well as the revival of idle ones. The Industrial Development Authority (IDA) will play a crucial role in this process, with extended working days to better serve investors and producers.

The government's plan also includes setting and executing land development policies for industrial purposes, making land available for investors, and simplifying procedures for acquiring private and industrial licenses.

Overcoming economic challenges

Egypt's industrial sector has faced significant challenges due to global and regional tensions, including a severe shortage of US dollars and high operating costs. The government is addressing these issues through foreign direct investments (FDIs) to provide US dollar liquidity and by committing to increase the private sector’s share of economic activity, as outlined in its agreement with the International Monetary Fund (IMF).

Conclusion

Egypt's comprehensive plan to boost its industrial sector reflects a strategic approach to fostering economic growth and sustainability. By focusing on reducing import reliance, expanding exports, developing the workforce, and enhancing cooperation with the private sector, Egypt aims to position itself as a significant industrial hub in the region and beyond. The government's commitment and coordinated efforts promise a brighter future for the country's industrial sector, driving economic progress and job creation.