The newly-sworn-in cabinet has big plans for industry: More incentives for export-oriented industry, import substitution, regulatory reform and boosted competitiveness, as well as increased connectivity with trade hubs are just a few of the ambitious industry-focused goals laid out in a 276-page document outlining the new cabinet’s three-year strategy.

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Egypt as a hub for industry and trade: The new cabinet led by Prime Minister Moustafa Madbouly intends to double down on finalizing a new national strategy for industry and trade competitiveness, with an emphasis on positioning Egypt as a hub for sustainable industry and trade, the report says. The initiative targets an annual growth of 31.2% in industrial output by FY 26-27 and USD 103.4 bn in total exports in the period between 2024 and 2026, and to USD 130 bn by FY 26-27.

And a whole lot of other good talk for manufacturing and other exports: Also on the drawing board are incentives packages to boost export industries, partnerships with industry leaders and investors to localize the production of inputs to industry in a bid to save on FX, as well as domestic production of automotives and microchips. The cabinet is also eyeing a new database for export-oriented companies with performance appraisals, an 8% yearly increase in electronics exports and USD 2 bn in pharma exports by FY 26-27, regulatory and customs reforms, and golden licenses for agricultural projects.

Egypt’s exports to Africa are getting a special focus: The cabinet is eyeing boosted cooperation with trade partners in Africa via the African Continental Freetrade Area (AfCFTA) — which seems to be taking off — and the COMESA, the report says. African exports will also be supported by new trade missions, with added support for companies targeting exports to Africa also on the cards.

Remember: Egypt’s exports will be supported by boosted capacity at SCZONE ports, as well as new investments in logistics zones, logistics corridors, dry ports, railways, and other infrastructure. We ran a recap of the new cabinet’s transport and logistics strategy here.

Efforts to close the import gap also got a mention: The cabinet plans to collaborate with industry to increase locally sourced inputs to manufacturing by tapping investments for some 152 projects, the report says. Output from these investments will contribute to reducing the import bill and curbing FX drain once they come online.

This has been on our radar for some time: The Trade Ministry-led import substitution initiative first came to light last year. The 152 projects mentioned include paper products, pharma, serums, pipes, automotive components, as well as iron and steel and are slated to have a USD 3 bn output and cover some 11% of Egypt’s trade deficit.

The Madbouly-led cabinet intends to support these goals via a slew of supportive measures, including completing plans for industrial clusters, improvements to roads and transport infrastructure, support for public companies involved with developing industrial clusters, and integrations with supply chains. Also on the table are programs to update the database for industrial real estate, facilities for applications and zoning, digitized permits.

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Less red-tape and more ease of doing business: The government intends to continue implementing and monitoring reforms approved in the first meeting of the Supreme Council for Investment while preparing the next meeting’s agenda. At the same time, the cabinet aims to streamline permits by leveraging digitalization, while developing and deploying the single window to simplify procedures for investors. Also under consideration is better communication between the General Authority for Investment and Freezones (GAFI), other government bodies, and stakeholders, as well as more transparency and clearer guidelines for official permits.

Other strategic industry goals highlighted in the report:

• Keeping local manufacturing in line with international product standards;
• Reeling in investments from abroad and from the local private sector;
• Initiatives to support research and development in industry as well, intellectual property rights, and the adoption of new tech;
• Financial and logistics support for industrial areas;
• Doubling down on synergies between public companies operating in different industrial sectors;
• Support for SMEs through financial facilities for leasing;
• Streamlining permits for industrial projects and a greater proportion of land slated for industry.

Your top industrial development stories for the week:

• Factories can now use up to 70% of their total land area: The Trade Ministry has issued a decision to raise the required building ratios for industrial facilities to 40-70% of the total land area, up from 40-65% previously, as a prerequisite for licensing. The move aims to expand industrial projects and boost production by improving land utilization. (Al Shorouk)
• Fertilizer and pesticide manufacturer Green Magic plans to invest EGP 100 mn in two new factories, Chairman of the Board Amr Raslan told Al Borsa. One factory will manufacture fertilizers with a production capacity of 10k tons annually, while the second will specialize in sorting and packing agricultural products. The company, which currently operates a factory in Wadi El Natrun, also plans to increase the export share of its production to 50%, up from 20% during the coming year by entering new Arab markets, Raslan said.
• Eco-friendly agri-packaging firm FreshDeal plans to set up a EGP 50 mn sustainable packaging factory in the Sixth of October city, according to Managing Director and CEO Mohamed Ali. The factory will boost the company’s production capacity to 100 mn ec-friendly packs a year, up from the current 40 mn, and will earmark its output for exports to foreign markets. (Al Mal).