Amid rising demand, what are the challenges facing the elevator industry in Egypt?

Egypt’s elevator industry needs a lift: Although demand has jumped as a result of rising orders across all market segments on the back of the state's mega-infrastructure projects and the construction of new cities, the elevator industry — a niche but critical sector — has been under pressure because of the FX shortage and import restrictions, which have driven up the costs of raw materials and imported parts. These issues resulted in shipment delays, extending the timelines set for project launches, according to industry insiders Enterprise spoke with.

The FX shortage took its toll on the industry, adding to pre-existing foundational issues: While the biggest problem facing the industry today is the FX shortage and its implications — such as the import constraints, which private sector players are saying are gradually easing — there are other pressing issues rooted within the mechanics of the industry itself. Our sources pointed to problems such as historic over-reliance on imports and limited skilled and field-educated labor, which are curbing the growth of the industry and its expansion prospects.

Import restrictions put the elevator industry out of order: Following the import restrictions of 2022, the heavily import-dependent sector suffered from price increases and a tight component market. “The suspension of imports has impacted our sector in many ways. First, the big problem right now is the unavailability of supply,” Yasser Shenawey, CEO of elevator supply and installation company Beam Construction, told Enterprise. “When imports [were restricted] in 2022, suppliers started selling their stock of material and elevator components at double and triple their prices. Now that import constraints are easing up, prices are still high because importers are paying more to receive their orders from overseas suppliers,” he added.