Egypt to increase allocations for manufacturing sector to reach EGP 100.7 Bn in FY 23,24

The 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.

H.E. Dr. Hala El-Said, Minister of Planning and Economic Development, stressed the importance of the manufacturing sector as it is one of the priority sectors in the National Structural Reforms Program, which was launched in 2021 to diversify the country’s productive structure and increase its flexibility.

El-Said added that the industrial sector is considered one of the leading sectors characterized by high productivity, labor absorptive capacity, growing export capabilities, and strong interconnections with various other economic sectors, whether goods or services.

El-Said said that the industrial sector ranks first in contribution to the gross domestic product by no less than 16%, as well as expanding its operational capacity, allowing it to accommodate about 3.5 million workers, equivalent to about 13% of the total workforce.

The industrial sector also participates in national exports by more than 85% of the total non-oil merchandise exports, which amount to about $ 25.9 billion in 2021/22, according to El-Said.

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 EGP 100.7 billion to the manufacturing sector, an increase of 19.6% over the expected investments for the year 22/2023, amounting to EGP 84.2 billion.

The share of non-petroleum manufacturing industries is estimated at EGP 79 billion of the sector’s total investments, while the petroleum industries account for about EGP 22 billion.

Regarding the targets of the industrial sector for 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 EGP 3.6 trillion in the year 22/2023 to EGP 4.3 trillion in the plan for the year 23/2024.

The report referred 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 it is estimated that the total industrial production at constant prices will reach slightly more than EGP 3 trillion in the year 2023/2024, then to about EGP 3.23 trillion in the year 25/2026, with the production of petroleum industries expected to grow at a faster pace than the corresponding production of non-oil industries. 

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

  The plan also aims to increase the real output of the industrial sector to reach about EGP 1.37 trillion by the end of the plan, compared to about EGP 1.29 trillion in the year 23/2024.