Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Kamel Al-Wazir, met with Fayoum Governor Ahmed El-Ansary and senior officials to address challenges faced by investors in the governorate’s industrial zones and explore solutions.
The meeting reviewed the progress of Fayoum Governorate’s four industrial zones, totalling 11,700 feddans, including the North Fayoum and New Fayoum zones, along with two industrial complexes for small and medium industries. The status of allocated and vacant land, infrastructure development, and vacant units in the complexes was discussed.
The Minister directed the addition of loading ramps or dry ports at high-speed rail stations near industrial zones to facilitate goods transport. He also emphasized that industrial land allocation will be done via the Egypt Digital Industrial Platform, with land reclaimed from non-serious investors to be reoffered in December 2024.
The Minister directed the Industrial Development Authority (IDA) to repeatedly remind industrial establishments that have obtained operating licenses but have not started production within the designated time frame to commence operations as soon as possible. Additionally, establishments that have begun production without obtaining operating licences must apply for one to avoid the authority initiating factory closure procedures.
He noted that these measures will create opportunities for serious investors and ensure the proper functioning of industrial zones, preventing them from becoming informal areas over time.
The Minister emphasized the importance of focusing on expanding existing industrial zones in each governorate rather than establishing new ones, as these extensions would benefit from the road networks and utilities of the original zones. This approach would save time and costs for the state and private investors when developing new industrial projects and support the expansion plans of serious factories already in operation.
He also instructed the Land Transport Regulatory Authority to coordinate with the Fayoum Governorate and the Ministry of Interior to establish regular transport lines to and from existing industrial zones and complexes in Fayoum to serve workers commuting to these areas.
Additionally, he directed the Industrial and Mining Projects Authority to study the infrastructure development of the North Fayoum Industrial Zone, which is expected to become a promising industrial area.
The meeting aimed to address challenges facing factories and investors in Fayoum, focusing on assisting those establishing new factories and reopening closed ones. It also sought to resolve issues with unused allocated land. The Minister clarified that discussions on establishing factories do not involve closing facilities like cheese, aluminium foil, or cosmetics factories, but instead aim to reduce import costs by producing locally. He added that undeveloped or inactive land and factories will be reclaimed and reoffered to serious investors via the Egypt Digital Industrial Platform to promote job creation.
He noted that the goal is to establish and operate factories, not to close them. He also reiterated that there will be no ban on imports. On 3 July 2024, the government presented a plan to President Abdel Fattah Al-Sisi that aimed to reduce imports. For example, Egypt has the best aromatic plants in Fayoum, Minya, and other cities, however, it imports cosmetics and perfumes and exports those plants as raw materials to be processed abroad and then re-imported as finished products. It would be more beneficial to produce them locally.
The Minister affirmed the Ministry’s readiness to allocate an unused grain silo, covering 17,500 sqm, to any serious investor in the Damu area of Fayoum for a project to produce cosmetics and perfumes.
During his meeting with investors in Fayoum, the Minister pointed out that procedures will be initiated to issue a legislative amendment to regularize the status of factories operating on agricultural land that already have operating licenses, similar to the regularization of residential buildings established on agricultural land.
He concluded that no industrial facility currently under construction on agricultural land will be permitted to operate without a building permit, in accordance with the legislation that prohibits the establishment of factories on agricultural land effective 15 October 2023. This measure aims to protect agricultural land, which must be preserved and valued, just like industrial activities, as both contribute to national income.
