Some factories in Egypt have received surprise letters demanding they pay retroactive fines for exceeding water consumption limits, execs at two manufacturers told EnterpriseAM.

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The newly imposed water consumption quotas are being applied retroactively to all consumption records since 2020, the sources said. Industry insiders described the bar for being classified as a low-end water consumer as “unworkably” low.

REMEMBER- Egypt faces an annual water deficit of around 7 bn cbm, which is equivalent to 55% of its needs. Egypt is expected to rely more on virtual water imports than local Nile water by 2030 as the river suffers from the intrusion of saltwater, rising sea levels, and the threat of the Grand Ethiopian Renaissance Dam on the country’s future water supply.

Factories did not see this coming — and they’re taking action. The Egyptian Businessmen’s Association is asking officials to clarify the new rules, arguing that the decision is inconsistent with the state’s push to grow industrial output. Factories currently have no outstanding debts to water companies, one source noted, and many were unaware of any consumption limits prior to receiving the letters. The association has also asked the prime minister and housing minister for an urgent meeting to discuss the fines and determine how the new quotas will be implemented.

The industry is calling for a rollback of the decision, highlighting that most factories regularly settle their water and electricity bills and that industrial water use is not usually subject to pricing tiers. The source called on the government to either cancel the decision or apply it only from the date it was issued — not retroactively.

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