Ministry of Planning and Economic Development reviews the objectives of Egypt's manufacturing industry sector in the FY 21/2022 plan

EGP 125.7 BN allocated for Egypt’s manufacturing industry sector in FY 21/2022 plan: Says Hala El-Said

The Ministry of Planning and Economic Development reviewed the objectives of the manufacturing industry in the plan for the current fiscal year 21/2022 (FY 21/2022), which is the fourth year of the medium-term plan for sustainable development (18/2019 - 21/2022).


Dr. Hala El-Said, Minister of Planning and Economic Development, explained that the importance of the industrial sector is reflected in its generation of about 17% of the GDP, and its absorption of about 15% of the total regular employment, in addition to its contribution to the export activity by between 80% and 85% of the total non-oil merchandise exports, which makes it exchange the first place with the remittances of Egyptians abroad in the list of the main sources of foreign exchange generating.



El-Said added that the industrial sector is characterized by dynamism and the ability and its high productivity compared to other economic sectors, in addition to the strength of its intertwined relationships, which makes it a catalyst and stimulant for the growth of other sectors related to it, whether directly or indirectly.


Regarding the targeted investments for the industrial sector, El-Said indicated that the total investments targeted in the year 21/2022 (estimated at EGP 125.7 billion), of which about EGP 16.6 billion are in the field of petroleum refining industries, and the rest is about EGP 109.1 billion in the field of non-petroleum manufacturing industries.

The report of the Ministry of Planning and Economic Development indicated that the most important targets of the manufacturing sector in the plan for the year 21/2022 are to increase industrial production (non-oil) to reach EGP 1.75 trillion at current prices, with a growth rate of 9.9 percent over the expected in 20/2021, in addition to increasing the output of the manufacturing industry (non-oil) at current prices by 11.9 percent to about EGP 808 billion in 21/2022, compared to about EGP 721.4 billion expected in 20/2021.

Targets also include ongoing efforts to develop and rehabilitate some public business sector companies in activities of strategic importance, such as spinning and weaving, cotton gins, aluminum, steel, and fertilizer industries, completing the construction of 6 industrial parks in the governorates of Assiut, Qena, Aswan, Beheira and Fayoum.


The aforementioned establishment of industrial parks came within the framework of the plan to establish 13 industrial complexes for medium and small enterprises, in addition to offering 10 million square meters of attached industrial lands and making them available to investors.

The objectives of the manufacturing sector in the plan of 21/2022 also include the tendency to establish “Integrated Industrial Clusters” in specific industrial fields to benefit from current majors and integration, such as industrial clusters in the field of spinning and weaving and the manufacture of wooden furniture, in addition to deepening local manufacturing by expanding in producing many intermediate inputs and linking with international supply chains.


The objectives also include developing the market digital platform to provide markets and technological solutions for the products of small and medium companies, in addition to establishing a unified and aggregated network for entrepreneurship that includes all entrepreneurship initiatives at the level of Egypt in various fields to follow up on the impact of these small and medium initiatives and projects on business incubators and evaluate.


The goals also include a tendency to intensify investments in environmentally friendly manufacturing fields, such as electric cars, manufacturing panels, and solar cells, and components of generating units from renewable energy sources, in addition to increasing non-oil industrial exports by at least 10% during the year 21/2022 to reach about $ 26 billion, compared to $ 23 billion expected in 2020.


The aforementioned goals also include continuing to provide export support and linking it to priority goals, such as the percentage of activity’s contribution to added value through deepening the local component, contributing to technological development, opening new markets or offering non-traditional products in agreement, and the new program to develop and support Egyptian exports.