Minister of Industry Khaled Hashem met on Sunday with European Bank for Reconstruction and Development (EBRD) Vice President for Policy and Partnerships Mark Bowman and EBRD Director for Corporate Affairs Jacqui Powell.
They discussed the bank’s projects in Egypt and ways to expand co-operation in industry, the green economy, water efficiency and support for small and medium-sized enterprises (SMEs).
The talks focused on the EBRD’s role in developing a competitive, resilient and sustainable private sector in Egypt, with industry seen as a key driver of economic growth and a major contributor to efforts to reduce carbon emissions.
The minister also discussed the bank’s support for the private sector’s transition to renewable energy, in line with Egypt’s target of raising renewables’ share of the energy mix to 45 per cent by 2028.
The meeting reviewed the EBRD’s green economy projects and activities under the Climate Investment Funds (CIF), which provide large-scale concessional financing to developing and emerging economies and encourage private investment in low-carbon and sustainable development.
Egypt is one of seven countries selected to benefit from up to €250 million in concessional financing under the CIF. The EBRD is the initiative’s leading international financial institution, working in co-operation with the Egyptian government.
Hashem said Egypt’s industrial strategy seeks to increase the sector’s reliance on renewable energy through the “Industrial Sun” initiative, which aims to install solar power plants at factories.
The ministry is also working with the United Nations Development Programme on the Solar Energy Transition Initiative (SETI), which supports the installation of solar systems at state-owned industrial facilities, as well as measures to improve energy efficiency in factories.
The minister said the government was also seeking to reduce industrial water consumption by promoting closed-loop water systems and expanding the use of water-reuse plants and technologies.
Such measures could create a new market and encourage international companies to localise production in Egypt, he said.
Hashem called on the EBRD to support private-sector companies investing in solar power generation and water-efficiency and reuse systems, particularly as the government seeks to expand such technologies across industrial zones.
He noted that several foreign companies had recently invested in Egypt in the production of solar power equipment and electric vehicle batteries, reflecting growing investor interest in industries linked to the green transition.
Strengthening industrial supply chains
Hashem said the ministry was also working to strengthen industrial supply chains and reduce fuel consumption.
In the iron and steel sector, the ministry has worked to secure the scrap needed for production and strengthen supply chains. It is also seeking to improve the efficiency of cement plants and increase the use of alternative fuels in manufacturing.
These measures would help reduce fuel consumption and improve industrial efficiency, he said.
The ministry also aims to expand the base of small and medium-sized industrial enterprises and connect them to domestic and international supply chains.
Hashem said Egypt was seeking to attract European SMEs and entrepreneurs, with such investment expected to support technology localisation and transfer and allow companies to benefit from Egypt’s position as a manufacturing and export gateway to Arab, African and European markets.
He said the ministry had recently introduced several measures to make it easier for small industrial investors to establish businesses, beginning with the allocation of industrial land.
These measures include a lease-to-own system designed to reduce investors’ initial financial burden and allow them to direct more resources towards factory construction, modern machinery and equipment, and production lines.
The ministry is also expanding the availability of industrial land under usufruct arrangements.
At the same time, it is working to simplify industrial licensing procedures by reducing requirements related to the so-called “10-year insurance” policy, while introducing new financing services and preliminary feasibility studies.
A new unit has also been established at the Industrial Modernisation Centre to provide technical support to small manufacturers, guide them towards investment opportunities and priority sectors, and help establish new industrial projects that are better linked to market demand and supply chains.
Hashem said the ministry also wanted to work with the EBRD on a programme to finance infrastructure development in industrial zones that currently lack adequate facilities.
The proposed co-operation would help improve infrastructure in these zones, attract new investments and strengthen the competitiveness of Egypt’s industrial sector.
