100 billion pounds.. Egypt intends to invest in the manufacturing sector

The Egyptian Ministry of Planning and Economic Development issued a report on the targets and investments of the manufacturing sector in the plan for the fiscal year 2023/2024.

100.7 billion pounds investments in the manufacturing sector.

The Egyptian Minister of Planning and Economic Development, Hala Al-Saeed, stressed the importance of the manufacturing sector as it is one of the priority sectors in the national program for structural reforms, as the ministry intends to invest about 100.7 billion pounds in the manufacturing sector, according to the official page of the Egyptian Council of Ministers.

The industrial sector is one of the leading sectors

Al-Saeed added that the industrial sector is considered one of the leading sectors characterized by high productivity, labor absorptive capacity, and growing export capabilities, in addition to strong correlational and interconnected relationships with various other economic sectors, whether goods or services.

Industrial sector

Al-Saeed added that the industrial sector ranks first in terms of contribution to the gross domestic product by no less than 16%, as well as the expansion of its operational capacity, allowing it to accommodate about 3.5 million workers, equivalent to about 13% of the total workforce, in addition to the sector’s participation in National exports represent more than 85% of the total non-oil merchandise exports, amounting to about $25.9 billion in 2021/21, which enhances its role in alleviating the severity of structural imbalances in the trade balance.

Investing 100.7 billion pounds in the manufacturing sector

The report of the Ministry of Planning and Economic Development reviewed industrial investments, as the plan for the year 2023/2024 aims to direct investments of about 100.7 billion pounds to the manufacturing sector, an increase of 19.6% over the expected investments for the year 22/2023, amounting to 84.2 billion pounds, and the share of non-petroleum manufacturing industries is estimated at about 79 billion pounds of the sector’s total investments, while the petroleum industries account for about 22 billion pounds.

Industrial production

Regarding the objectives of the industrial sector with regard to production, the report of the Ministry of Planning and Economic Development explained that it is aimed to increase the expectation of industrial production from about 3.6 trillion pounds in the year 2022/2023 to 4.3 trillion pounds in the plan for the year 23/2024, with a growth rate of more than 19%. At current prices, it will reach about 5.74 trillion pounds at the end of the 2025/26 plan, recording a growth rate of approximately 15% over the corresponding production in the previous year.

Petroleum and non-petroleum industries are expected to grow at similar rates

The report pointed to the development of the industrial structure during the years of the medium-term plan, which leads to the expectation that both petroleum and non-petroleum industries will grow at similar rates, which keeps the relative weight of each of them largely constant. The report added that the total industrial production at constant prices is estimated to reach A little more than 3 trillion pounds in the year 2023/2024, then to about 3.23 trillion pounds in the year 25/2026, with the production of petroleum industries expected to grow at a faster pace than the corresponding production of non-petroleum industries.

The report also explained that the target is for industrial output at current prices to reach about 2.46 trillion pounds by the end of the year 2025/2026, compared to about 1.83 trillion pounds in the year 2024/23, with an average annual growth rate of more than 18% during the years of the plan. The plan also targets