How Egypt became a magnet for Chinese manufacturers (video)

In recent years, Egypt has emerged as a strategic hub for Chinese companies seeking to expand their manufacturing footprint in Africa and the Middle East. Several prominent Chinese firms have established or announced plans to set up factories in Egypt, leveraging its favorable investment climate, strategic location, and skilled workforce. Below is an overview of key Chinese companies operating or planning to operate manufacturing facilities in Egypt:

1. GAC Motor

Guangzhou Automobile Group Co., Ltd. (GAC) has announced plans to invest $300 million in establishing a vehicle manufacturing plant in Egypt. The project aims to serve both the domestic market and export markets in the region. Mass production is expected to commence in the second half of 2026, with the plant focusing on Completely Knocked Down (CKD) assembly operations. 

2. Midea Group

Midea Group, a leading home appliance manufacturer, has been expanding its presence in Egypt. The company inaugurated its third industrial complex in Sadat City with an investment of $105 million. Additionally, Midea launched a $25 million factory in the Suez Canal Economic Zone (SCZone), expected to produce 1.5 million washing machines annually for export to the Middle East, Africa, the EU, and the US. 

3. OPPO

Chinese electronics manufacturer OPPO has established a mobile phone factory in Egypt with an initial investment of $20 million. Located in Beni Suef, the factory has a production capacity of 4.5 million units annually and is expected to create approximately 650 job opportunities. 

4. Huawei

Huawei has been actively expanding its operations in Egypt. In May 2024, the company launched a public cloud region in Cairo, making it the first company to establish such a facility in Egypt. Additionally, Huawei has partnered with Egypt’s Ministry of Electricity to localize the manufacturing of electric grid equipment, aiming to enhance the country’s energy infrastructure. 

5. Transsion Holdings

Transsion Holdings, known for brands like Infinix, Tecno, and Itel, has established a factory in the Suez Canal Economic Zone dedicated to producing wearable mobile accessories, including smartwatches and Bluetooth headphones. This facility is the first of its kind in Africa and the Middle East, reinforcing Transsion’s commitment to the region. 

6. BYD

BYD, a prominent Chinese electric vehicle manufacturer, has expressed intentions to expand its business in Egypt. The company is in discussions with the Egyptian Ministry of Industry to produce new hybrid and gasoline-powered models locally. BYD aims to commence car manufacturing in Egypt by the end of the year or early next year, aligning with its strategy to cater to the growing demand for electric vehicles in the region. 

These developments underscore Egypt’s growing significance as a manufacturing and export hub for Chinese companies targeting the African and Middle Eastern markets. The collaborations not only bolster Egypt’s industrial capabilities but also contribute to job creation and technological advancement in the region.