Egypt’s Prime Minister Mostafa Madbouly’s recent tour of the 10th of Ramadan industrial zone highlighted Egypt’s strategic push to become a prominent regional manufacturing hub. This initiative includes attracting tech giants like Apple, with Xiaomi already committed to setting up factories in Egypt.
Madbouly’s visit wasn’t limited to technology; it also showcased a factory producing high-quality sanitaryware for international brands. This underscores the government’s commitment, led by President Abdel Fattah el-Sisi, to diversify and strengthen Egypt’s entire industrial sector.
Government Strategy: Attract Investment, Boost Exports
The government has a two-pronged approach: attracting major international corporations and fostering a business environment that encourages foreign investment. This strategy aims to create high-value goods locally and position Egypt as a leading exporter.
Open Communication, Streamlined Expansion
Madbouly emphasized open communication with international investors and manufacturers. The government is committed to offering necessary support to facilitate their expansion plans within the Egyptian market, particularly those focused on exports.
Economic Reform, Global Recognition
This push to diversify Egypt’s industrial base aligns with the country’s broader economic strategy of securing a stronger position in the global financial landscape. The government’s efforts to attract foreign investment also aim to reduce import reliance and strengthen foreign reserves.
Positive Ratings, Sustainable Growth
This focus on economic reform has garnered positive attention from international ratings agencies. In May 2024, Fitch revised Egypt’s economic outlook to “positive” from “stable,” citing reduced external financing risks and a surge in foreign direct investment. The agency also affirmed Egypt’s credit rating at “B-.” Fitch acknowledges the initial steps taken by the government to control off-budget spending, contributing to a more sustainable public debt situation.
