El-Wazir made this statement while chairing the 12th meeting of the Ministerial Group for Industrial Development.

The minister explained that the key sectors identified for support include pharmaceuticals, engineering, building materials, textiles, food, and chemicals.

Moreover, he emphasized that Egyptian banks are committed to providing necessary financing for production and industrial facilities, beyond just consumer projects.

Minister El-Wazir also noted that the Central Bank of Egypt (CBE) plans to launch funds to support producers across various sectors, particularly the industrial sector.

"Coordination is currently underway between the Ministry of Industry and the CBE to identify priority productive sectors eligible for financial support from banks in order to provide machinery and equipment," El-Wazir stated.

This collaboration is part of ongoing efforts with the Ministry of Finance and CBE to facilitate industry funding at a 15 percent interest rate.

In April, the cabinet approved an amendment to the initiative to finance private-sector companies and establishments in industrial and agricultural activities. The amendment increased the interest rate to 15 percent from the previous 11 percent, to further support productive sectors.

Tyre manufacturing city plan
 

During the meeting, the Arab Organization for Industrialization presented its plan to develop a city for manufacturing car tyres in collaboration with one of the largest Chinese tyre producers. The city will be in the Ain Sokhna free zone and house three tyre factories.

• The first factory will produce tyre manufacturing equipment and service and maintenance centres.
• The second factory will focus on producing steel wires for tyres.
• The third factory will include a white carbon factory, a research and development centre for rubber and tyre technology, and a training centre for field workers.

The project's first phase will concentrate on establishing the tyre factory, which is expected to be completed within a year.

The meeting also reviewed plans to develop the Nisr Tires factory in Alexandria in collaboration with European companies. Production is set to begin in two years.

Additionally, a project to establish a tyre manufacturing plant in Amiriya, in partnership with a Chinese company, was discussed.

Furthermore, the meeting saw plans to manufacture solar panel glass with an Emirati company and produce batteries for minibuses at El-Nasr Automotive Manufacturing Company.

El-Wazir instructed the Holding Company for Maritime and Land Transport to coordinate with El-Nasr Automotive to supply luxury buses for passengers at high-speed train stations in new cities.

This move aligns with Egypt’s national strategy of localizing the automotive industry, which was launched in June 2022.

Aluminium industry upgrades
 

The meeting also discussed the public business sector's strategy to upgrade the Naga Hammadi aluminium factory as part of Egypt’s efforts to increase investments in aluminium production.

This initiative aims to meet local market demand while reducing reliance on aluminium imports. Aluminum is a key input for many industries, making its local production a critical component of the country’s industrial development.

The factory development plan will begin in 2025 and continue for four years.

These efforts are part of Egypt’s broader strategy to strengthen its industrial base, reduce imports, and increase production capacity across various sectors.

They also align with the country's goal to raise the industrial sector's contribution to the gross domestic product (GDP) to 20-30 percent, up from its current 14 percent.

The government’s focus on localizing manufacturing, particularly in sectors like automotive and aluminium, is crucial to reducing reliance on imports and boosting domestic production.

Green hydrogen

The discussions also addressed mechanisms to encourage the production of green hydrogen and its derivatives and the challenges facing its industry in Egypt.

El-wazir explained that the main challenges for the green hydrogen industry include providing industrial land designated for renewable energy and ensuring the necessary electricity supply for projects through the national electricity grid.