This initiative is part of Egypt's broader efforts to localize industry and boost its industrial capabilities.

Under the government programme covering 2024-2027, Egypt plans to identify 152 specific investment opportunities to localize industry.

Prime Minister Mostafa Madbouly revealed during the third edition of the International Annual Industry Conference and Exhibition (IMCE) held in November that Egypt aims to increase the industrial sector's contribution to the country’s GDP from its current 14 percent to between 20 and 30 percent.

The newly formed government, which took office in July, has prioritized boosting industrial sector growth from the current 17 percent to over 31 percent by FY2026/2027.

This new initiative will support companies in expanding into priority industries by providing financial facilities for purchasing machinery, equipment, or production lines.

The initiative is the third in a series of concurrent efforts. The first initiative, launched by the Central Bank of Egypt (CBE), focuses on financing the industrial sector for purchasing machinery and equipment. The second initiative, which is still under review, proposes establishing a fund supported by contributions from banks and financiers to assist struggling factories.

The Ministerial Group for Industrial Development has identified seven priority industries: pharmaceuticals, engineering, food, ready-made garments and textiles, chemicals, mining, and construction materials.

To benefit from the initiative, companies must meet several conditions.

These include providing proof of completed construction, obtaining a building permit, and submitting a tax invoice for the local purchase of machinery, equipment, or production lines.

The initiative sets a maximum period for benefit, with priority given to facilities located in areas with high employment rates and significant development needs, such as Upper Egypt, border governorates, the Suez Canal region, and southern Giza Governorate.

The executive mechanisms for the initiative will be coordinated between the Ministry of Finance, the Central Bank, the Ministry of Industry, and other relevant parties.

In December, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir, along with Minister of Finance Ahmed Kouchouk, announced that Egypt has allocated EGP 30 billion to finance the first phase of this initiative.

El-Wazir announced that developing the industrial sectors prioritized by the government would require a loan of approximately EGP 7.7 billion.