Egypt inks over USD 1.1 bn worth of agreements and MoUs at Forum on China-Africa Cooperation

Egypt signed a raft of contracts and MoUs with Chinese companies totaling over USD 1.1 bn at the three-day Forum on China-Africa Cooperation in Beijing, which wrapped last Friday. The agreements include a host of new industrial facilities in the Suez Canal Economic Zone (SCZone) and investments in several key industries, including manufacturing, telecommunications and others.

But first, more land for Chinese investors? The Egyptian government will allocate more land to Teda Investment Holding — the company behind the China-Egypt TEDA trade zone — in the Suez Canal area. It has also offered to grant the company land on the Mediterranean coast in the New Alamein City to help it expand and attract new manufacturers.

A handful of Chinese factory projects are in the works: Several Chinese companies have inked land usufruct agreements with the China-Egypt TEDA trade zone in Ain Sokhna to set up factories there, including:

#1- A USD 500 mn chlor-alkali production facility: Chinese chemicals manufacturer Befar Group will set up a USD 500 mn chlor-alkali production facility that is set to be the first green chemical facility in Egypt and globally. The facility in its first phase will harness wind and solar energy, electricity, and natural gas to generate steam as its energy source, according to SCZone head Walid Gamal El Din. It is set to leverage the SCZone’s goal to become a regional production and exports hub for green fuels, according to a statement.

#2- A USD 300 mn glass production factory: Glass manufacturer China Glass Holding will set up a USD 300 mn glass factory. The factory will produce float glass and super-white galvanized glass, each with a daily production of 800 tons. The project will target the local market as well as exports to North Africa, the Middle East and Europe, with an export capacity of up to 240k tons annually, and projected export revenues of up to USD 120 mn annually.

#3- A USD 7.5 mn starch production facility: Dahui Glucose and local producer Tiba Starch is set to establish a USD 7.5 mn modified starch factory. The project aims to meet demand for modified starch in Egypt, the Middle East, and East Africa. It will produce 20k tons annually in its first phase before ramping up annual production to 50k tons.

AND- GWM looks serious about setting up an auto factory in Egypt: Automobile manufacturer Great Wall Motors (GWM) made a request for a 1 mn sqm plot of land for an auto factory it is considering setting up in the country. SCZone head Gamal Walid El Din first disclosed such plans last week. The facility would produce vehicles and spare parts for both the local market and export to neighboring countries and would be implemented in two phases, each with an annual production capacity of 60k vehicles. Should it make a formal decision to set up shop in the country, the government would allocate the required land and issue a golden license to expedite the project, Prime Minister Moustafa Madbouly said.

Madbouly also urged other Chinese carmakers to invest in Egypt’s auto industry: The Prime Minister offered to give automobile manufacturer GAC Motor special incentives and a golden license to expand production to Egypt. He also discussed potential investments with Henan Investment Group — the investment arm of China’s Henan province — particularly in renewable energy and electric car industries.

PLUS- China Energy to speed up work on new facilities: China Energy pledged to expedite the establishment of factories and production centers for renewable energy technologies and to prioritize new energy projects, including green hydrogen and green ammonia. The company also announced plans to expand its operations in Egypt, including moving its North African headquarters here. China Energy currently runs 12 projects in the country with a combined value of USD 2 bn.

COMMUNICATIONS-

Egypt’s communications industry is luring in Chinese investors: The Information Technology Industry Development Agency (ITIDA) and China inked a number of MoUs with Chinese tech companies to boost cooperation in communications and information technology.

#1- Tsinghua Unigroup to set up USD 300 mn technology investment fund: State-owned technology and semiconductor manufacturer Tsinghua Unigroup inked an MoU to set up a technology investment fund with an initial capital of around USD 300 mn, of which the company and its subsidiaries will contribute 60-70%. The agreement will also see the company setting up a data center, rolling out cloud services, studying the establishment of an R&D center for electronic chip design, and working on AI applications with a specific focus on developing a large language model for the Arabic language.

#2- FiberHome to set up shop in Egypt: Wuhan FiberHome International Technologies inked an MoU to set up a fiber optic cables factory that will produce 1 mn core kilometers of fiber, 500k communication terminal devices, and 3k base station antennas annually. These products will serve both the local market and be exported to the Middle East and North Africa. The MoU will also see it set up an R&D center for optical networks and green transformation technology, in addition to a training center with the ICT Ministry.

#3- Hengtong Group to build a second factory in Egypt: Power and fiber optic cable manufacturer Hengtong Group inked an MoU to launch a USD 15 mn second factory in the SCZone. The company will produce fiber optic cables and FTTX network accessories, in addition to operating and maintaining submarine fiber optic cables. The factory is slated to produce 3 mn kms of fiber optic cables annually and export 40% of its production to Europe, the Middle East, and Africa. Hengtong will also establish a training academy for fiber optic communications technologies in partnership with the National Telecommunications Institute, launch a joint training program with Telecom Egypt, and work with Telecom Egypt to provide at least 2 mn housing units with passive access to fiber optic networks.

PLUS- CSCEC eyes airport development gigs: China State Construction Engineering Corporation (CSCEC) expressed interest in collaborating with the government on airport development efforts and is exploring partnerships with international companies to operate new airports or terminals that will be built.