9 facts about Egypt’s new initiative to revive stalled factories
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Egypt is moving ahead with a large-scale financing initiative aimed at reviving thousands of stalled factories across the country. The plan, announced by Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir, represents one of the boldest pushes to strengthen the industrial sector in years. Here are nine key facts that explain what this initiative means and why it matters.
1. The initiative focuses on stalled and distressed factories
Egypt’s government is targeting approximately 12,000 stalled factories nationwide. These are facilities that previously operated but shut down due to financial difficulties, administrative hurdles, or outdated equipment. By restructuring and reoperating them, the state hopes to turn dormant assets into productive engines of growth.
2. Industrial revival is tied to GDP growth goals
The initiative isn’t just about saving jobs—it’s tied to a broader economic target. The government wants to raise the industrial sector’s contribution to GDP from 14 percent to 20 percent. This aligns with Egypt’s long-term economic diversification strategy, which aims to reduce dependency on imports and build domestic production capacity.
3. Previous revival efforts have shown results
This isn’t Egypt’s first attempt to bring factories back online. By December 2024, officials had already announced the successful revival of 1,000 factories. The new financing push builds on these early results, scaling up support measures to accelerate recovery in 2025.
4. Financing will support both capital and operations
The initiative is expected to provide two forms of financing:
Capital for production lines to modernize outdated machinery and expand capacity.
Working capital to help factories resume operations smoothly and cover immediate costs.
By addressing both investment and day-to-day expenses, the government hopes to prevent factories from stalling again after reopening.
5. The government is clearing bureaucratic hurdles
One of the biggest challenges for industrial investors has been red tape. El-Wazir pledged that the government will remove technical, administrative, and procedural obstacles that often slow down factory operations. Simplifying licensing, approvals, and compliance is expected to make the investment environment far more attractive.
6. New industrial land will be made available
In addition to reviving existing factories, Egypt plans to offer new industrial land plots through the Industrial Digital Platform starting in September. This move is designed to encourage fresh investment while integrating struggling businesses into more structured and compliant industrial zones.
7. Informal and unplanned zones will be formalized
A major element of the plan is addressing unplanned industrial areas and informal workshops. Many small factories operate in residential neighborhoods or outside official clusters. The government intends to relocate them into compliant industrial zones where they can benefit from infrastructure, regulation, and financing support.
8. Mega-projects are part of the strategy
Beyond smaller factories, large industrial projects are also central to the vision. During his visit to Alexandria, El-Wazir inspected the Alstom Industrial Complex in New Borg El-Arab, which is expected to become a cornerstone of Egypt’s railway manufacturing industry. Mega-projects like this reflect the government’s push to localize strategic industries.
9. Millions of jobs are expected to be created
Industrial revival is a core pillar of Egypt’s employment strategy. By supporting small- and medium-sized enterprises (SMEs), reviving distressed factories, and integrating informal businesses, the government estimates it can create between seven and eight million jobs in 2025. This would provide a significant boost to local communities and the broader labor market.
The bigger picture
Egypt’s new financing initiative is more than a short-term lifeline—it’s a structural attempt to modernize and expand the country’s industrial base. If successful, it will transform idle factories into growth drivers, strengthen GDP contribution, and position Egypt as a more competitive manufacturing hub in the region.