Egypt Signs Four Key Industrial Cooperation Protocols to Boost Exports and Digital Transformation
The Ministry of Industry in Egypt has entered into four significant cooperation protocols through the Industrial Modernization Center (IMC) with key stakeholders, including the Export Development Fund, Hassan Allam Group, ELSquare, and the National Egyptian Railway Industries Company (NERIC). This initiative aims to bolster exporters, enhance local suppliers, accelerate digital transformation, and improve the competitiveness of the Egyptian industrial sector.
Implementation of Quality and Compliance Programs
The first protocol, established between the IMC and the Export Development Fund, focuses on assisting exporting companies in obtaining essential quality, conformity, and environmental compliance certifications across nine industrial sectors. These sectors include food, engineering, chemicals, medical supplies, ready-made garments, home furnishings, textiles, leather, and furniture.
Smart Manufacturing Initiatives
The second protocol, signed with ELSquare, is part of an initiative aimed at promoting smart manufacturing for industrial facilities. This agreement is particularly geared towards providing digital transformation and smart manufacturing solutions, with a focus on small and medium-sized enterprises (SMEs).
Supplier Development and Sustainability
The third protocol with Hassan Allam Group is designed to develop between 20 and 40 local suppliers to support the group’s projects. This initiative emphasizes compliance with sustainability standards, green building practices, and carbon emissions reduction requirements.
The fourth protocol, signed with NERIC, aims to develop seven local suppliers in its initial phase. These suppliers will provide components for train and metro carriage manufacturing, adhering to the IRIS (ISO 22163:2023) standard. The first phase includes 14 locally sourced components, with plans for future expansion of the supplier base.
Ministerial Insights on Industrial Transformation
Minister of Industry Khaled Hashem stated that the IMC will play a pivotal role in Egypt’s industrial and technological transformation agenda. This agenda is supported by a modernization plan that emphasizes the integration of digital technologies and artificial intelligence, linking scientific research with industrial needs, and assisting manufacturers in meeting evolving international standards.
Hashem noted that these agreements align with the ministry’s strategy to elevate merchandise exports to $100 billion by 2030. This strategy focuses on deeper localization of manufacturing, enhanced integration into global value chains, and broader adoption of advanced technologies. Improving product quality, fostering innovation, and increasing local content are key pillars of this strategy.
Enhancing Productivity and Operational Efficiency
The minister emphasized that collaboration with the Export Development Fund will enable Egyptian products to meet international quality and sustainability standards. The smart manufacturing initiative is expected to significantly enhance productivity and operational efficiency. Additionally, the supplier development programs with Hassan Allam Group and NERIC will support local manufacturing and integrate Egyptian companies into the supply chains of major national projects and strategic industries.
Egypt’s Industrial Strategy 2030
During the signing ceremony, Hashem outlined the core components of Egypt’s Industrial Strategy 2030. This strategy aims to increase industrial exports to $100 billion by attracting technology-intensive investments, enhancing local value added, and strengthening integration with international production networks.
The strategy prioritizes sectors with significant economic impact potential, including ready-made garments, textiles, food industries, pharmaceuticals, automobiles, electrical and engineering equipment, and electronics. It also encompasses enabling industries such as renewable energy equipment, water conservation technologies, machinery, metal manufacturing, and industrial robotics, alongside strategic sectors like iron and steel, aluminum, chemicals, fertilizers, building materials, and mining.
Future Investment Initiatives
Hashem also announced plans to establish industrial investment funds that will allow citizens to participate in financing industrial projects, particularly expansion initiatives. The first fund is expected to be operational by September and will offer financing through direct equity participation and debt-to-equity conversion mechanisms.
The ministry is also preparing to launch a platform aimed at attracting new investors to stalled factories. This platform will facilitate the acquisition of existing facilities, land, and licenses following independent valuation. It will create a database linking investors with underutilized industrial assets to help resume production and generate employment opportunities.
Attracting Global Automotive Manufacturers
The government continues to attract global automotive manufacturers through incentives provided under the National Automotive Industry Development Program, which aims for an annual vehicle production target of 100,000 units by 2030.
Productive Villages Initiative
Hashem highlighted the forthcoming rollout of the Productive Villages Initiative, which seeks to create employment opportunities in rural areas by connecting villages to industrial supply chains based on local resources and workforce capabilities. This initiative will initially be launched in selected villages in Minya and Beheira, with plans for expansion to other governorates.
Source: www.zawya.com
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Published on 2026-06-22 13:21:00 • By the Editorial Desk
