The Ministry of Industry has unveiled a broadened strategy to deepen domestic manufacturing, announcing 28 industrial sectors targeted for localization as part of the government’s ongoing efforts to reduce reliance on imports and stimulate local investment.

The expanded list builds on a set of 23 priority sectors first announced in December last year.

Many of the industries listed are currently served by imports despite strong local demand and available production inputs.

The initiative is designed to channel private sector capital into high-potential industries where Egypt has either a natural advantage or untapped capacity, according to an official statement from the Ministry.

Among the newly identified sectors are renewable energy components, including solar and wind power systems, automotive manufacturing, advanced software and robotics, and green hydrogen production.

Also included are industries related to healthcare, pharmaceuticals, electrical and mechanical components, desalination technologies, food processing, and textiles.

The Ministry explained that the industries were selected based on multiple criteria: the availability of energy sources (including gas, electricity, and coal), labor costs for workers, technicians, and engineers, access to raw materials, the presence of existing factories, technological capabilities, and local demand. Egypt’s strategic geographic location, which provides strong export potential, also factored into the decision.

In its official release, the Ministry stated that it is actively inviting serious investors to either inject fresh capital or scale up existing operations in the targeted sectors, which are seen as key to both industrial self-sufficiency and long-term economic resilience.

Wide Spectrum of Targeted Sectors

The 28 industries span a wide range of manufacturing verticals:

   - Clean energy technologies including components for solar panels, wind turbines, and energy storage systems;

   - Electric and traditional vehicle components, such as batteries, steering systems, suspension parts, and smart electronics;

   - Software and AI-driven solutions tailored to industrial and healthcare sectors;

   - Desalination plant parts including pumps, membranes, filtration systems, and control electronics;

   - Infant formula production, leveraging Egypt’s agricultural base to localize dairy processing;

   - Metals and materials like aluminum products, iron derivatives, and seamless steel pipes;

   - Pharmaceuticals and natural extracts, supported by Egypt’s abundant aromatic plant resources;

   - Consumer and industrial goods such as air conditioning systems, elevators, printing inks, water pumps, and electric motors;

   - Food and textile manufacturing, focusing on healthy packaged foods, specialized dietary products, synthetic and recycled fabrics, and ready-made garments;

   - Green technologies, including the production and storage of green hydrogen;

   - Waste recycling, particularly electronic waste, metals, and biodegradable materials;

   - Petrochemical products, from PVC to polyethylene derivatives;

   - Advanced robotics and control systems used in sectors ranging from surgery to smart logistics.

Some industries, like polyester, soda ash, and electrical transformers, are essential inputs across broader supply chains, making their localization a high-return investment for both public and private stakeholders.

By targeting high-impact manufacturing sectors, the government aims to reduce the import bill, generate skilled employment, and enhance industrial exports over the medium term.

Localizing these and other sectors will not only improve Egypt’s self-reliance but also enable value-added exports, according to the ministry, especially to regional and African markets where Egypt enjoys preferential trade access.