Lack of affordable lands, enacting laws main challenges of new industrial investment map: investors

Shaimaa Al-Aees
14 Min Read

Minister of Trade and Industry Tarek Kabil launched the industrial investment map, which includes all available industrial investment opportunities in various governorates in Egypt.

The data at the ministry’s website indicates that there are 3,886 industrial investment opportunities in 27 Egyptian governorates.

In February, the ministry launched the first phase of the industrial investment map, which included 600 opportunities in seven governorates: Qena, Sohag, Beni Suef, Luxor, Minya, Aswan, and Assiut.

The 3,886 investment opportunities are distributed on different production sectors. The engineering, electronic and electrical industries topped the list, with 1,110 opportunities; the basic chemical products sector with 775 opportunities; and the food, beverage, and tobacco sector with 633 opportunities. The mining and quarrying sector includes 435 opportunities, pharmaceuticals with 193 opportunities, basic metal industries sector with 96 opportunities, and 55 opportunities in leather sector.

The map shows that 58.5% of these projects are in small projects, followed by medium-size projects with 787 opportunities, followed by micro-size enterprises with 531 opportunities, and large projects with 324 opportunities. There were also 61 incubators and 43 institutes of sufficient productivity.

The top five governorates in industrial investment opportunities are Alexandria, Menoufiya, Minya, Beni Sueif, and Sharqeya.

The number of opportunities available in Alexandria was 198, with 22 opportunities in the mining and quarrying industries, two in the leather sector, 12 in the pharmaceutical industry, 74 in the engineering and electronics industries, 25 in textiles, 7 opportunities in the basic metals sector, and 21 opportunities in the food, beverage, and tobacco sectors.

Hany El Menshawy, vice chairperson of Borg El Arab Industrial Investors’ board of directors pointed out that the most important incentives are to activate the initiative of the Central Bank of Egypt (CBE) to finance small and medium-sized enterprises (SMEs) and to provide technical support and training for workers.

He noted that the city of Borg El Arab is a fully affordable region or zone to accommodates a large number of industries that serve the national economy.

The investment map of Menoufiya governorate included 184 opportunities, distributed over 13 opportunities in the mining industries sector and exploitation of quarries and mines,11 opportunities in the pharmaceutical industry, 49 in engineering and electronics, 33 in textiles, 33 in basic chemicals, 7 in metal, and 38 in food, beverage, and tobacco.

Investment opportunities in the Minya governorate amounted to 175 opportunities, distributed over 26 opportunities in the mining and quarrying industries, 3 in leather, 9 in pharmaceutical, 51 in engineering and electronics, 22 in textiles, 34 in basic chemicals 5 opportunities in the basic metal industries sector, and 25 opportunities in the food, beverage, and tobacco sectors.

President of the Minya Investors Association Alaa’ Morsi said that the opportunity available in the governorate, which total 175 opportunities is insufficient, especially that the governorate has an abundance of industrial land and accommodate a larger number of industries that contribute to support the Egyptian economy.

He called the Minister of Industry for an acceleration in the industrialisation (connecting land with utilities) of the industrial zone in Sardaria industrial zone in the governorate.

He added that the association has received more than a promise from the minister to connect the land with utilities. The zone can include many important industries such as manufacturing cement, marble, white sand, and other industries.

He noted that the most important incentives that must be available to activate these announced opportunities are as follow: activating a one-stop-shop, shortening the period of obtaining licences to not exceed 30 days, the government paying part of connecting services to the factories, and activating new laws related to industrial investment.

The total number of opportunities available in Beni Suef was 174, distributed over 18 opportunities in the mining and quarrying industries, 4 in the leather sector, 15 in the pharmaceutical industry, 56 in the engineering and electronics industries, 16 in textiles. There were also 27 opportunities in the food, beverage, and tobacco sectors.

In Sharqeya, there are about 173 opportunities, distributed over 13 in the mining industry and exploitation of quarries and mines, and 2 opportunities in the leather sector, 9 opportunities in the pharmaceutical industry, 51 opportunities in the engineering and electronics industries, 33 opportunities in the spinning, weaving and clothing sector, 29 opportunities in the basic chemicals and products sector, 7 opportunities in the basic metals sector, and 29 in the food, beverage and tobacco sectors.

For his part, Ayman Reda, general-secretariat of 10th Ramadan Investors Association, said that the 10th of Ramadan needs more lands to develop these industries and he demanded for more incentives and facilitations to youth who want to invest in small and micro-sized projects through providing them lands through a usufruct system, as they don’t have the sufficient financial solvency to pay the land prices and start their business.

He called on the government to enact newly issued laws, such as the new Investment Law and new Industrial Licences Law, and to provide training for employees who will implement these laws to eliminate bureaucracy.

The least goverorates in investments are  Gharbia, Luxor, North Sinai, New Valley South Sinai

Investment opportunities in Gharbia governorate reached 121 opportunities, distributed over 8 opportunities in the mining and quarrying industries, 38 in the engineering and electronics industries, 26 in spinning, weaving and clothing, 23 in the basic chemical products sector, an opportunity in metal industry sector, and 25 opportunities in food, beverage, and tobacco sector.

Investment opportunities in Luxor amounted to 118 opportunities, distributed over 14 opportunities in the mining industry, exploitation of quarries and mines, two opportunities in the leather sector, 6 in the pharmaceutical sector, 34 in engineering and electronics, 18 in textile. And an opportunity in the basic metal industry, and 17 opportunities in the food, beverage, and tobacco sector.

North Sinai governorate included 105 opportunities, distributed over 22 opportunities in the mining and quarrying industries, 2 opportunities in the pharmaceutical industries, 21 opportunities in the engineering and electronics industries, 14 opportunities in the spinning and weaving sector, 30 opportunities in the basic chemicals and products sector, 1 opportunity in basic metals, and 15 opportunities in the food, beverage, and tobacco sectors.

The investment map of New Valley governorate included 94 opportunities, distributed over 13 opportunities in the mining industry and the exploitation of quarries and mines, an opportunity in leather sector, 17 in the engineering and electronics industries, 17 in textiles and clothing, 27 in the basic chemical products sector, and 19 in food, beverage, and tobacco.

South Sinai includes about 85 opportunities, distributed over 21 opportunities in the mining industry, quarrying and mining, an opportunity in leather industry, 18 and textile industries, 17 opportunities in the basic chemical products sector, and 11 in food, beverage, and tobacco.

The investments in other goverorates

The investment opportunities available in Cairo up to 163 opportunities.

Investment opportunities in Giza governorate are 161 opportunities.

The number of opportunities available in Qalyubia is 147 opportunities.

The opportunities available in Dakahlia registered 134 opportunities.

The investment map of Damietta governorate includes about 130 opportunities, distributed over 14 opportunities in the mining industry, exploitation of quarries and mines, an opportunity in the leather sector, 2 opportunities in the pharmaceutical industry, 40 opportunities in the engineering and electronics industries, 16 opportunities in the spinning and weaving sector, 2 opportunities in the basic metal industries sector, and 30 in food, beverage, and tobacco.

For his part, Osama El Tabaay, the head of New Damietta City Investors Association, told Daily News Egypt that these opportunities are are varied and effective for the development of the governorate; however, he added that there are no new lands for these investments.

He praised the new Industrial Licence Law and also the executive regulations of the new Investment Law, which have been issued recently. Meanwhile, El Tabaay called the government to not define construction rates for the factories or plants to ease the investor to launch their business.

He claimed that Damietta governorate needs complementary industries for the furniture industry.

Investment opportunities in Kafr Al-Sheikh governorate amounted to 153 opportunities.

The investment map of Beheira governorate includes about 138 opportunities.

The investment opportunities available in Matrouh governorate amounted to 134 opportunities.

The investment map of the Suez governorate includes 146 opportunities, distributed over 19 opportunities in the mining and quarrying industries, 1 opportunity in the leather sector, 8 in the pharmaceutical industry, 48 in the engineering and electronics industries, 15 in the spinning and weaving sector, 9 in the basic metals sector, and 26 opportunities in the food, beverage, and tobacco sectors.

Member of the board of directors of the Suez Investors Association, Abdel Basset Al-Hakim, noted that most of the offered industrial projects were without a good study of what is useful for the governorate.

Al-Hakim added that there are some industries that have been overlooked, such as shipbuilding and ports development, in addition to projects in the field of solar energy production.

Al-Hakim claimed that for more than four years, the Ministry of Industry announces projects that do not exist on the ground.

He pointed to the problem of troubled factories increase and the government has to find special solutions for them and that these factories have problems in energy and insurance, as well as the lack of trained labour and taxes on labour is a big burden to those factories and the reason for their failure.

He called on the governorate of Suez to provide a database of troubled factories and the industries needed by the government.

He explained that at the level of the Republic there are about 4,200 troubled factories.

“one of the most important incentives to activate the one-stop-shop to unite the competent authorities to save time and effort to accelerate the process of investment,” noted Al-Hakim.

He called for the existence of a separate ministry for SMEs that would have all the powers so as not to refer to other ministries or other bodies that complicating the procedures.

Investment opportunities in Port Said governorate amounted to 138 opportunities, distributed over 17 opportunities in the mining industry, exploitation of quarries and mines, 8 opportunities in the pharmaceutical sector, 33 in engineering and electronics, 20 in textile and clothing, 28 in basic chemicals. In addition to, 7 opportunities in the basic metal industries sector, and 24 opportunities in the food, beverage, and tobacco sectors.

The number of opportunities available in Ismailia is 149.

The investment map of Fayoum governorate includes 134 opportunities.

The number of opportunities available in Assiut reached 170 opportunities.

Investment opportunities in the Red Sea governorate were 126.

The number of opportunities available in Qena governorate is 149 opportunities.

The investment map of Sohag included 163 opportunities.

The number of opportunities available in Aswan is about 124.

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