🏭 Egypt is investing in sustainable industry: As climate change makes itself felt across the world and in our backyard, governments face the monumental task of ensuring growth that is sustainable for our people and our planet. Happily, our very own Environment Ministry is currently spearheading a number of programs aimed at supporting industries to reduce carbon emissions, improve energy efficiency, and adopt sustainable practices — all with greener growth in mind.

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Existing programs have paved the way for enduring transformation: The Egyptian Pollution AbatementProgramme (EPAP), now in its third phase, has successfully provided EUR 300 mn in funding, facilitating projects worth EUR 550 mn in total investments.

Refresher- EPAP is a wide-scale initiative launched in the early 1990s by the Environment Ministry to help industries reduce energy and resource consumption and comply with environmental regulations. It provides a mix of loans and grants to industries, with financial backing from parties including the EU, AFD, the European Investment Bank (EIB), and German development bank KfW.

The initiative offered ample funding for industrial greening programs: The EPAP’s third phase — which received some EUR 145 mn in financing — saw the government offer industrial companies concessional loans with grants of up to 24% of total project costs. This funding supported 34 major projects across 23 facilities, with total investments of EUR 193.5 mn.

SMEs also got in on the funding: The third phase of EPAP also offered small and medium enterprises (SMEs) grants covering up to 30% of project costs, with 37 projects in the renewable energy adoption, waste management, and emissions reduction arenas funded with total investments of EUR 13.9 mn.

Projects helping advance sustainable industries: The upcoming Green SustainableIndustries (GSI) program — set to launch in 2025 and run through 2030 — is backed by EUR 271 mn in funding and is set to contribute to investments worth a total of some EUR 500 mn. The program will provide financial and technical assistance for renewable energy projects, circular economy initiatives, and carbon footprint reduction measures.

As things stand: The Environment Ministry will soon ink fresh financing contracts under the program, a government source told EnterpriseAM without specifying the exact date. There are also a number of studies underway to qualify more industries for the program, especially those that account for a large chunk of our European exports and need to amend their practices to line up with European export requirements.

Targeted industries include: The fertilizers, cement, iron, and aluminum sectors, seeing as they account for a significant percentage of Egyptian exports, the source said.

Green technology in action: Industrial facilities across Egypt are integrating advanced green technologies to enhance operations and reduce emissions. Recent projects include Alexandria Mineral Oils Company’s (AMOC) phenol treatment unit for wastewater, Flex P Films’ recycling line for PET plastic waste, and El Nasr for Fertilizers & Chemical Industries’ (Semadco) new wastewater treatment station. Additionally, Harvest Foods has introduced wastewater treatment systems in its Sixth of October and Borg El Arab facilities, while Wadi El Nile Cement has developed an alternative fuel system to minimize its reliance on traditional energy sources.

SMEs are also playing a vital role in the green transformation. Among the projects underway are wastewater treatment installations at Ovo Egypt and Classic Food Industries, replacing old machinery at various facilities, and transitioning to renewable energy sources.

Digitization is facilitating the process: The ministry is leveraging digital tools to improve environmental monitoring and governance. Programs on the table include the Eco Monitor app, which tracks endangered marine species, and the launch of the National System for Waste Information and Data Management (WIMS), which facilitates the licensing of waste management companies. The ministry has also developed digital platforms for real-time monitoring of air and water quality, using satellite data to detect industrial pollution hotspots.

Your top industrial development stories for the week:

  • DXN Global to set up a local facility: Natural food supplements and health products firm DXN Global signed a strategic partnership with its local agent DXN Egypt Alidrisi on Saturday, under which the company plans to set up a local manufacturing facility for its products.
  • Abu Qurqas sugar factory back in business: The Supply Ministry confirmed that the Abu Qurqas sugar factory has resumed operations this year after a pause last season. The facility has successfully processed the targeted cane deliveries and completed production according to plan. (Statement)
  • Robbiki Leather City allocates all 43 factories in first offering: All 43 ready-made factories in Robbiki Leather City’s first offering have been allocated, with applicants to be notified via SMS and the results published on the Egypt Digital Industrial Platform, the Transport Ministry said. (Statement)
  • Organi Group to launch USD 100 mn chlorine pellet factory by 2025: Organi Group is building a USD 100 mn factory to produce chlorine pellets, marking the Middle East’s first such facility, with operations set to begin in 2025. The news comes after the Group’s announcement of its plans to invest USD 1 bn in the automotive and tourism sectors by 2030.
  • Lesaffre Egypt, Huhtamaki receive golden licenses: French yeast producer Lesaffre Egypt will invest EUR 120 mn in a yeast production and packaging facility in Beheira, exporting over 90% of its 22.6k-ton annual output. Finnish food packaging manufacturer Huhtamaki will establish an EGP 1.5 bn factory in Sadat City, using 70% local materials and exporting 70% of its production.
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