Egyptian Prime Minister Mostafa Madbouly has announced a new initiative valued at EGP 30 billion aimed at supporting the country’s industrial sector over the next five years. This initiative, detailed in an official statement, is part of Egypt’s broader efforts to enhance its industrial capabilities and attract investment.
Focus on Factory Development and Expansion
The initiative primarily targets the development of new factories and the expansion of existing ones. Under this plan, investors will only be responsible for 15% of the interest rate, with the state covering the remaining 85%. This financial structure is designed to make investment in Egypt’s industrial sector more attractive and sustainable, encouraging both local and international businesses to invest in the country’s industrial growth.
Support from the European Union
The announcement coincides with Egypt’s receipt of a €1 billion loan from the European Union (EU) on December 20, 2024, aimed at supporting the country’s ongoing economic development efforts. This funding is part of a broader partnership between Egypt and international financial institutions to stimulate growth and stability across various sectors.
Progress in the Spinning and Weaving Project
Prime Minister Madbouly also provided updates on the progress of key industrial projects, including the spinning and weaving facility in El Mahalla El Kubra. The first phase of this project has already been completed, with the second and third phases set to finish by 2025. The Egyptian government has committed approximately EGP 56 billion towards the development of this facility, underlining its importance to Egypt’s industrial strategy.
Advancements in the Automotive Sector
The Prime Minister also highlighted significant developments in Egypt’s automotive sector, including a new agreement between the MG Group and Chinese company SAIC Motors to establish a new factory in Egypt. This agreement is expected to enhance local manufacturing capabilities and further strengthen Egypt’s automotive industry, which is a key pillar of its broader industrial strategy.
Economic Growth and Private Sector Investment
During his speech, Madbouly reviewed the performance of the Egyptian economy in Q1 of FY 2025, reporting a growth rate of 3.5%. He noted that the private sector played a significant role in driving this growth, accounting for 63.5% of total investments during the period. The Prime Minister also highlighted an increase in the share of soft financing for the private sector, which rose from $2.9 billion to $4.2 billion, further demonstrating the growing investment confidence in Egypt.
This initiative, coupled with other ongoing projects and international collaborations, marks a significant step in Egypt’s efforts to bolster its industrial sector, attract foreign investment, and foster economic growth in the coming years.
