Minister of Planning and Economic Development Dr. Rania Al-Mashat highlighted that the manufacturing sector is dynamic and diverse, enabling it to rapidly adapt to technological advancements in production and keep pace with global supply chain and trade developments. The sector also helps diversify the productive structure by offering a wide range of industrial products.
The industrial sector is characterized by high productivity,
which allows it to achieve consistently high growth rates. It also has strong
interconnectedness with other economic sectors, a growing capacity to absorb
labor, and strong export potential in foreign markets.
Al-Mashat noted that manufacturing ranks first in its
contribution to the Gross Domestic Product (GDP), accounting for no less than
16%. It also makes up 14% of the total workforce and contributes over 85% of
national non-petroleum commodity exports. This reinforces its role in
mitigating structural imbalances in the trade balance and driving development
and growth in other economic sectors.
Given its vital importance, the manufacturing sector is a
key priority in the National Structural Reform Program, which aims to diversify
the economic base and increase its flexibility and ability to keep up with
global knowledge and technological developments, thereby enhancing the international
competitiveness of the Egyptian economy. Al-Mashat emphasized that
manufacturing is the engine of economic development in Egypt and a fundamental
driver for the growth of all other economic sectors. The strategy aims for
Egypt to become a leading country in the Middle East and North Africa and a
major hub for exporting medium-technology industrial products by 2030.
The minister affirmed that manufacturing industries are one
of the main pillars for the structural transformation of the Egyptian economy toward
tradable and exportable sectors. The state attaches great importance to the
industrial sector to increase its contribution to the GDP, expand its export
base, and boost foreign currency earnings.
Regarding industrial investments in the 2025/2026 plan,
Al-Mashat stated that the plan aims to allocate approximately 252.8 billion
Egyptian pounds to the manufacturing sector. This represents a 154.1% increase
over the 99.5 billion pounds of actual investments in 2023/2024. Non-petroleum
manufacturing industries are expected to receive 65.6% of the sector's total
investments, while petroleum industries will account for the remaining 34.4%.
Private investments are projected to make up about 83% of the total
investments, compared to 16.9% for public investments.
The Ministry of Planning report also pointed to the sector's
targets for 2025/2026 within the medium-term plan. Industrial production is
targeted to increase to 6.8 trillion pounds, up from the anticipated 5.7
trillion pounds in the previous year, with a growth rate of 19%.
The report noted the development of the industrial structure
during the plan year, with production from both petroleum and non-petroleum
industries growing at similar rates. This is expected to keep their relative
weights largely stable, with non-petroleum industries at 82.5% and petroleum
industries at 17.5%.
Industrial output is also targeted to reach approximately 2.9 trillion pounds in 2025/2026, compared to the expected 2.4 trillion pounds in 2024/2025, representing a 19% growth rate.