The Ministry of Industry, in partnership with the Central Bank of Egypt (CBE), is preparing to introduce a dedicated financing fund to support priority production sectors, with the industrial sector at the forefront.
The move aims to address key financial needs and stimulate growth in strategic industries, as outlined in a statement by the ministry.
Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, announced that the ministry and CBE are working together to identify priority sectors eligible for funding. This effort aligns with the government’s broader strategy to support economic development and industrial expansion.
The Federation of Egyptian Industries (FEI) has submitted a request for EGP 7.8 billion in funding, which will target pharmaceutical, engineering, construction materials, textile, food, and chemical industries.
SUPPORT FOR EXPORT-READY INDUSTRIES
Mohamed Abdel Salam, Chairman of the Ready-Made Garments Chamber, highlighted that approximately 1,500 garment companies require immediate funding for upgrading machinery and equipment. He emphasized that the initiative, alongside the CBE’s existing 15% industrial support program, could significantly enhance productivity and competitiveness.
Abdel Salam also pointed out that the textile and garment industries are poised for export growth, benefiting from shifting global market dynamics, including Turkey’s reduced competitiveness due to high labor costs.
Sherif El-Gabaly, Chairman of the Chamber of Chemical Industries, stated that detailed reports on companies needing financial support have been submitted, with disbursements expected soon.
METALLURGICAL SECTOR CONCERNS
While the metallurgical sector also requires substantial funding, Mohamed Hanafy, Executive Director of the Chamber of Metallurgical Industries, expressed disappointment over its exclusion from the priority list for financing.
The fund is expected to play a critical role in fostering industrial innovation, meeting domestic demand, and positioning Egypt’s industries for stronger global market presence.