Egypt awards golden licenses to export-oriented projects: The Egyptian Cabinet has agreed to award a golden license to China’s state-owned Xinxing for its USD 145 mn ductile iron pipes factory in Ain Sokhna’s TEDA industrial park, according to a statement. With a target launch date of March 2025, the project is expected to create 700 jobs.

The Cabinet also agreed to award Yada Egypt a golden license for a EUR 70 mn furniture plant that will export 100% of its production once it becomes operational in October 2026. The project will be located in Yada Egypt’s private freezone in New Alamein’s industrial zone, and will see polish manufacturer Padma — a key IKEA supplier — train local talent and introduce advanced production techniques to the country.

THERE IS MORE-

ِ#1- Egypt’s SCZone signs off on USD 12 mn factory: Egypt’s Suez Canal Economic Zone has inked a USD 12 mn agreement with Egyptian service and repair firm Industrial House to build a 50k sqm factory for the production and export of gypsum goods in East Ismailia, according to a statement. No timeline for the project has been disclosed.

Over 80% of the goods produced at the factory will be for export. The factory will be strategically located in the East Ismailia Tech Valley Zone due to its links to logistics hubs, including the Suez Canal and key railways.

The details: The facility will have three production lines for the manufacturing of gypsum boards, laminated gypsum, and plastic packaging bags. The factory is set to have an annual production capacity of 2 tons per sqm of gypsum board, 600k tons of laminated gypsum, and 60 mn plastic packaging bags annually.

Egypt is a top exporter: Egypt exported some USD 102 mn worth of gypsum goods in 2023, distinguishing the country as a top exporter along with Spain, Oman, Thailand, and Germany, according to data from the OEC.

#2- Egypt’s Ezz Elsewedy eyes auto exports: Ezz Elsewedy Investment Company — the joint venture formed by Elsewedy Capital and automotive group Ezz El Arab — is looking to export part of its auto production to seven African markets as a first step, aligning with Egypt’s national strategy to hit USD 100 bn in exports by 2030, according to a press release (pdf).

The context: The JV has just launched its first locally-assembled Malaysian Proton Saga, which has a local component ratio of 51%. The JV’s assembly factory currently has a production capacity of 5.3k vehicles per year, with plans to increase it to 25k units annually and 40k units if it moves to a two-shift operation.

Part of a USD 100 mn investment plan: The company plans to invest USD 100 mn expanding in the local auto market, setting up manufacturing and assembly facilities of petrol and electric vehicles, Ezz El Arab Chairman Hisham Ezz El Arab told EnterpriseAM yesterday during a presser held to celebrate the JV’s first locally-assembled vehicles. This will include setting up two additional factories in the 6th of October Industrial Zone — a car paint factory and another for the manufacture of spare parts and components, Ezz El Arab told us, adding that at a later stage will include an EV manufacturing facility.

What they said: “Egypt’s auto market has massive potential — not just in terms of growing demand, but as a strategic gateway to North Africa and the Middle East. That’s why we’re targeting producing 5k units of the Proton Saga CKD in 2025, with exports as a key driver of our growth strategy,” said Proton CEO Li Chunrong.

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