Egypt, ABB explore increasing exports, local components usage, and solar energy
ABB is an engineering firm with more than 100 years of presence in Egypt. It provides technological solutions while investing in local capacity building, connecting software to its electrification, robotics, automation, and motion activities.
ABB's operations in Egypt cover the water and agricultural wastewater treatment sector, mainly through the supply of motors, pumps, and variable speed drives.
The company discussed its plans with the Industry Ministry to increase exports of its Egyptian-made products to European markets. The ministry will provide support for ABB Egypt as it seeks more local suppliers to enhance the value added to its products and increase the use of local components.
The company's local component rate for its products is currently 78 percent. ABB Egypt has also exported around 25 percent of its total production to more than 50 countries in 2025 and to more than 60 countries during the first half of 2026.
Egypt has been working on new incentives to increase the local component ratio of products and raw materials in several sectors to support local industry, helping create a favourable environment for foreign investment that will increase capital flows.
The country has also been promoting manufacturing localization, reducing imports, and has finalized a set of tender and procurement documents that prioritize locally manufactured products.
Furthermore, ABB Egypt is planning to optimize its energy consumption to improve its competitiveness in Egypt's electrical industries sector, which is among the seven priority industries in Egypt's 2030 Industrial Strategy, according to Industry Minister Khaled Hashem.
The strategy aims to increase the industrial sector's contribution to GDP from 14 percent to 20 percent by 2030.
The electrical and engineering industries sector helps meet Egypt's domestic demand and has the potential for high added value and export capabilities. It can also contribute to technology localization and deepening local manufacturing, according to Hashem.
The firm is also planning to utilize Egypt's “Sun of Industry” initiative, which aims to install solar power stations on the rooftops of about 7,000 factories across various governorates for on-site electricity generation.
This will help reduce reliance on the national grid and conventional fuels, as well as diversify electricity sources and support wider solar energy use.
These moves align with the state's plans to increase the use of renewable energy in the industrial sector to enhance the competitiveness of the national industry and raise the share of clean energy in the country's electricity mix to 45 percent by 2028.
ABB has been eyeing expansions of its investments in the Egyptian market for some time, as it considers Egypt a promising market for energy efficiency, the green transition, and digital transformation.
The firm has already invested $200 million in Egypt over the past 10 years.
It is worth noting that the firm's main factory in the Middle East and Africa is located in Egypt's 10th of Ramadan City. ABB Egypt also has two other manufacturing plants in the free zones of Nasr City and Suez in the electrical and engineering sectors.