Lieutenant General Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, announced that the government will officially launch an initiative to restart struggling factories before the end of this month. The initiative will be implemented in cooperation with the Central Bank of Egypt.
The
initiative will include the establishment of an investment fund with
participation from several government banks. The fund will invest in factories
facing financial difficulties in exchange for a share of ownership. The share
will be determined according to the needs of each factory and its restart plan.
El-Gamal noted that struggling factories suffer from financial, administrative, and legal problems. These issues hinder their operation and lead to production stoppages. This negatively impacts the economy, investors, and workers. It prompted the government to launch the new initiative through Lieutenant General Al-Wazir. The initiative aims to support and restructure these factories via a fund that includes the Central Bank of Egypt and local banks.
He explained that, according to the government, the fund will finance struggling factories by acquiring up to a 25% ownership stake. The initiative targets the restructuring of around 6,000 struggling factories across various sectors. This will help restore production capacity and inject new life into the industrial sector.
He also highlighted broader economic challenges, such as rising energy prices and inflation. These are key factors in the crisis affecting these factories. They have intensified unemployment, as factory closures result in the loss of thousands of jobs.
Government data shows that 6,009 factories have been reactivated, generating over 230,000 new job opportunities. Additionally, 1,235 struggling factories have been reopened. Furthermore, 2,579 industrial plots have been allocated, 2,311 new or modified building permits have been issued, and 6,674 factories across 25 governorates have been inspected to provide support. None of these actions have resulted in any factory closures since July 2024.