Egypt eyes pharmaceutical self-reliance with $80 million local production push

Egypt is ramping up efforts to boost its pharmaceutical self-sufficiency with a substantial new investment aimed at expanding local manufacturing capacity. Industry leaders have announced plans to inject nearly LE 4 billion ($80 million) into the sector this year, adding 20 new production lines to facilities across the country.

This initiative is part of a broader national strategy to reduce Egypt’s dependency on imported medications and solidify its status as a regional pharmaceutical hub. With this expansion, the number of pharmaceutical production lines in operation will rise to 810, according to Gamal El Leithy, Chairman of the Chamber of Pharmaceutical Industry at the Federation of Egyptian Industries.

Local production set to replace billions in imports

Egypt currently produces about 91 percent of the medicines consumed domestically. The new investments are expected to further close the gap by enabling the local industry to replace around $3 billion worth of annual imports with homegrown alternatives.

Officials and analysts see this as a crucial step not only in improving access to essential medicines but also in bolstering national health security. By expanding domestic capacity, Egypt aims to shield itself from global supply chain disruptions and price volatility in international markets.

Surging sales reflect sector’s rapid growth

The pharmaceutical industry has shown strong growth momentum. In 2024, total medicine sales in Egypt soared by over 40 percent, reaching LE 307 billion. Early indicators for 2025 are equally promising, with sales in January and February totaling LE 62 billion—up sharply from LE 40 billion in the same period the previous year.

This performance reflects a significant increase in production volumes, particularly in the packaged drug segment, which has been a focus area for manufacturers responding to growing domestic demand.

Focus turns to high-priority and specialized drugs

While Egypt has made strides in producing common medications, authorities are now setting their sights on more specialized pharmaceutical categories. Plans are underway to localize the production of high-priority treatments, including oncology drugs, immunodeficiency medications, imaging contrast agents, and infant formula.

These efforts are part of a long-term vision to elevate the sophistication of the local pharmaceutical sector and position Egypt as a competitive exporter of complex medical products.

Export ambitions underscore global aspirations

The government's strategy includes a target of increasing pharmaceutical exports to $3 billion by 2030. Recent data suggests progress is being made in this area. In the first quarter of 2025, Egypt’s exports of pharmaceutical and medical products rose by 25 percent year-on-year, reaching $205 million, according to the General Organization for Export and Import Control.

Industry stakeholders say this upward trend reflects both increased production capacity and rising international confidence in Egyptian-made pharmaceuticals. As the country moves to deepen its manufacturing base and develop advanced capabilities, Egypt could emerge as a key player in the global pharmaceutical landscape.