Egypt moves to deepen local manufacturing, expand investment incentives

Prime Minister Moustafa Madbouly chaired an executive meeting at the cabinet headquarters in the New Administrative Capital to review proposals submitted by the Federation of Egyptian Industries (FEI) following the recommendations of Egypt Forum 2026.

The meeting aimed to implement President Abdel Fattah Al-Sisi’s directives to accelerate industrial growth, attract greater domestic and foreign investment, and expand job creation.

It was attended by Deputy Prime Minister for Economic Affairs Hussein Issa, Minister of Industry Khaled Hashem, FEI Chair Mohamed El-Sewedy, General Authority for Investment and Free Zones (GAFI) Vice Executive Chairman Ahmed Sheta, and Assistant Minister of Industry Mohamed Sami.

During the meeting, El-Sewedy outlined a four-pronged strategy to deepen local manufacturing capabilities and increase industrial output across Egypt.

The proposals include establishing a formal five-year government procurement forecasting mechanism to give local manufacturers 12 to 18 months to prepare and establish production lines in response to anticipated demand.

They also call for transferring the management of vocational training centres affiliated with the Ministry of Labour to the private sector and the FEI to improve the quality and relevance of technical training.

The federation further proposed strict enforcement of Law No. 1 of 2015, which requires preference to be given to local products in government procurement and publicly funded contracts, including those financed through international funding.

The fourth proposal seeks to extend the incentives provided under the Investment Law to Development Zones A and B across all industrial sectors, without restrictions based on specific activities.

In response, Madbouly directed all ministries and state entities to fully comply with local procurement requirements, warning that administrative measures would be taken against officials who purchase foreign products when locally manufactured alternatives are available.

For his part, Hashem said the Ministry of Industry had already sent formal requests to all government ministries to identify their manufacturing and procurement needs over the next five years.

He added that coordination was underway with the Ministry of Investment and Foreign Trade to expand the incentives available in Development Zones A and B.

The minister also highlighted the establishment of a Supreme Council for Training, chaired by the Ministry of Education and Technical Education, to improve the utilisation of government vocational training facilities in partnership with private sector operators.