The Ministry of Industry has launched the first phase of a new EGP 30bn financing initiative targeting priority industrial sectors, with the aim of supporting the purchase of machinery, equipment, and production lines. The plan, approved by the Cabinet, was officially introduced during the 14th meeting of the Ministerial Committee for Industrial Development.
This move is part of an urgent national strategy to accelerate industrial growth, increase the sector’s contribution to GDP, and expand the scope of targeted industries critical to Egypt’s economic development. The initiative was announced by Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, alongside Finance Minister Ahmed Kouchouk.
Under the initiative, private sector companies in key industrial fields will be eligible to access financing at a reduced interest rate of 15% for five years. To qualify, companies must have a construction license, have completed construction works, and present proof of purchasing equipment—either through a letter of credit for imported machinery or a tax invoice for locally sourced production lines.
To further incentivize local manufacturing, projects that increase local value-added or introduce new industrial activities not previously available in Egypt—particularly those in high-demand import sectors—may be granted an additional interest rate reduction of up to 2%.
The program includes specific eligibility criteria such as caps on financial support, credit limits aligned with company size and banking regulations, and a maximum time window for accessing the scheme. Priority will be given to facilities located in underdeveloped or labour-intensive areas, reflecting the state’s commitment to balanced regional development.
According to the Ministry, the initiative focuses on enhancing Egypt’s industrial capacity by enabling companies to modernize their production capabilities and adopt advanced technologies. This is expected to improve the competitiveness of Egyptian products in both domestic and international markets.
Seven key industrial sectors have been identified for their potential to generate added value through increased localization. These include the pharmaceutical sector, particularly in the production of active pharmaceutical ingredients for treatments such as cancer medications and antibiotics, as well as the cosmetics industry. The engineering sector is also targeted, especially in the production of machinery and equipment for manufacturing lines.
The initiative also prioritizes industries supporting renewable energy, such as the manufacture of solar cells, components of solar power stations, and green hydrogen production inputs including electrolysers. It extends to wind energy equipment such as moulds, generators, and transformers, as well as agricultural and construction machinery, including tractors and excavation tools.
In addition, the program encompasses the production of components for water desalination plants, refrigeration and air conditioning systems, and consumer electronics, including mobile phones. The food industry is also covered, particularly in the production of powdered milk, infant formula, processed medicinal and aromatic plants, dried fruits, and fruit concentrates.
The initiative further supports the textiles and garment sectors, including spinning and weaving operations focused on synthetic and blended yarns, as well as the chemical industries, which involve the production of inks, polyethylene, polypropylene, and acrylic. The mining sector is included too, especially in the processing of mineral ores for pharmaceutical and food uses, along with the technological industries and the construction materials sector, including ceramics, marble, granite, and pipes.
Investors interested in benefiting from the initiative are invited to submit applications to the headquarters of the Industrial Development Authority (IDA) in Fifth Settlement, or to its regional branches across the governorates. Applicants must ensure that all necessary documentation is submitted in full.
Once applications are received, the IDA will evaluate them based on technical requirements and will contact applicants within two weeks to begin coordination with participating banks. The Ministry confirmed that the Federation of Egyptian Industries has been fully briefed on all procedures and documentation requirements, and has been tasked with disseminating this information to its member companies to facilitate broad access to the initiative.
