If there’s one thing Prime Minister Moustafa Madbouly has done with metronomicconsistency since October, it’s his monthly visits to manufacturers in a bid to draw attention to Egypt’s natural position as an export hub serving Europe, Africa, the Middle East and beyond.

Last week’s stop: Sokhna Industrial Zone, where he stopped in on manufacturers producing steel, plastic, digital devices, lighting, and hygiene products.

The PM’s tours of manufacturers has become a staple of his agenda as his government looks to industry as a solution to our FX problems. “The lesson that we should all have learned now from the crisis is that we, as a country, must possess our production capabilities to the greatest extent possible. Every week, we sit with investors, we hold meetings to discuss attracting more investment and how we can remove any obstacles facing this vital sector,” Madbouly said in November.

One per month: Madbouly swung through South Port Said industrial zone in October, 10 Ramadan City in November, Sadat City in December, and Sokhna Industrial Zone last Thursday.

“This is our main concern today: Industry, Industry, Industry,” Madbouly said.“Manufacturing accounts for 17% of the Egyptian economy, a figure that grows. How can we flip the equation to make our exports more than our imports — or at least cover our needs through local production? Every factory, every expansion reduces our import bill,” he added.

It's a long game, the PM says: “The example we see here is a foreign investor who believes in the capabilities of this country, who is investing mns in foreign currency in a short period of time. They know that they are making investments for 20, 30, or 40 years from now. They are fully aware it’s a passing crisis and will end,” Madbouly said during a November visit to a USD 135 mn complex in Tenth of Ramadan City owned by China’s Haier.

Not only goods, but services: Madbouly also paid a visit in November to a number outsourcing and technology services companies, a sector his government thinks will generate USD 9 bn in export receipts annually by 2026. The Export Development Fund has been discussing adding digital design and development services to its export subsidy payout program, according to a Trade Ministry statement last month.

As we said in late 2022 in our five-step recipe to boost exports and FDI: Manufacturing is crucial. Unlike services, it’s also slow to get into production and capex-heavy during the buildout. We’ll be talking more about service exports in the weeks to come…

Tags: