Pharmaceuticals factory in Egypt. iStock.
According to an official statement, the government has increased spending on investments in manufacturing industries by 19.6 percent compared to FY 2022/2023, which saw investments amounting to EGP 84.2 billion.
In FY2023/24, the government plans to direct investments of EGP 79 billion towards non-oil manufacturing industries while allocating around EGP 22 billion to the petroleum sector.
These investments are anticipated to propel the country's industrial production from approximately EGP 3.6 trillion in the previous fiscal year to EGP 4.3 trillion in the 2023/2024 plan, reflecting a growth rate exceeding 19 percent.
Egypt aims to further increase the value of its industrial production to EGP 5.74 trillion by the end of FY2025/2026 -- an annual 15 percent growth rate.
Production in the petroleum industries is forecasted to grow faster than non-oil industries in the coming fiscal years, as per the statement.
El-Said highlighted the significant contribution of the industrial sector to Egypt's GDP, which constitutes 16 percent of the economy and provides jobs for around 3.5 million individuals (13 percent of the total workforce).
Moreover, the industrial sector drives Egyptian exports, producing over 85 percent of total non-oil exports valued at $ 25.9 billion in 2021/22.
Egypt's industrial development strategy aims to achieve five key goals by FY2026/2027.
These objectives include increasing the industrial growth rate to 8 percent, raising the industry's share of GDP to 20 percent, and achieving an annual growth rate for industrial exports ranging between 18 to 25 percent.
Furthermore, the strategy seeks to expand green industries and the circular economy to align with the country's objective of reaching exports worth $100 billion by 2030.
The increased focus on industry should support the government's plan to generate annual revenues of $191 billion by 2026, up from $ 70 billion now.