● The industrial sector is a major contributor to the national economy, and its adherence to environmental standards enhances its sustainability and investment attractiveness.
● Cooperation with international partners to support the state's efforts in localizing industry through facilitated financing mechanisms, technical support, and diagnostic reports.
● We are working to improve the business climate and policies supporting the private sector through structural reforms.
● The government places significant importance on developing the national industry as one of the pillars for achieving sustainable economic development.
● $3 billion in financing from international partners to implement 32 projects that directly and indirectly enhance industrial development efforts.
● Green industries increase the competitiveness of Egyptian exports and promote inclusive economic development.
H.E. Dr. Rania A. Al-Mashat emphasized that transitioning to green industrial development promotes sustainable growth and is a key component in addressing climate change. H.E. Minister Al-Mashat noted that these efforts align with Egypt's priorities to enhance sustainable development through the integration of environmental, social, economic, and technological dimensions. Sustainable industries are the cornerstone of economic growth and climate action, enhancing economic competitiveness and providing new job opportunities. Green industries also bolster the competitiveness of Egyptian exports.
This statement was made during her participation in the conference "Industry and Environment Towards Green Development," organized by the Ministries of Industry and Environment, with support from the European Union, the European Investment Bank, the German Agency for International Cooperation, the German Development Bank, and the French Development Agency, and attended by Lieutenant General Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, Dr. Yasmin Fouad, Minister of Environment, Engineer Mohamed El-Sewedy, Chairman of the Federation of Egyptian Industries, Dr. Sherif El-Gebaly, Head of the Environmental Compliance Office at the Federation of Egyptian Industries, and other representatives from national entities and development partners.
The Minister of Planning, Economic Development, and International Cooperation explained that the ministry is collaborating with all relevant ministries, particularly the Ministries of Environment and Industry, to incorporate environmental and climate dimensions into sustainable development plans. Achieving a "comprehensive and sustainable ecosystem" is a primary goal of Egypt's Vision 2030, reflecting the state's commitment to preserving future generations' rights by increasing the share of green public investments in the economic and social development plan.
H.E. Minister Al-Mashat asserted that industry is one of the most important components of the Egyptian economy, contributing over 15% to the Gross Domestic Product. With the state's focus on industrial development as a top priority and the establishment of a ministerial committee dedicated to implementing President Abdel Fattah El-Sisi's directives, efforts are concentrated on increasing Egypt's net exports and encouraging local products. Therefore, adherence to environmental standards and the use of modern technology are crucial for enhancing industry sustainability, improving resource efficiency, and reducing harmful environmental impacts, thereby supporting the implementation of the 2030 Sustainable Development Plan.
The ministry is working with all international development partners to support the country's industrial development efforts by accessing facilitated and innovative financing tools, providing technical support and expertise, and preparing diagnostic reports and sectoral studies. The ministry's portfolio includes 32 ongoing projects valued at over 3 billion dollars in the industrial development sector, focusing on four main areas:
Enhancing infrastructure and localizing promising industries: By providing necessary funding for major projects such as seaports, dry ports, and logistical networks, boosting national production capabilities and supporting the localization of industry in Egypt.
Investing in human capital, research, development, and innovation: Through training programs, technical support, building youth capacities, and fostering a culture of innovation to stimulate industrial development and economic growth through the knowledge economy.
Green transition: By offering financing and expertise that strengthen the Egyptian industry's ability to address environmental challenges and promote sustainable development.
Supportive policies and structural reforms: Development partners play a crucial role in improving the business environment and supporting policies by providing necessary consultations and funding to enhance the business climate through streamlined procedures and supportive legislation.
H.E. Dr. Al-Mashat confirmed that the ministry is coordinating with all relevant parties and inviting the private sector and entrepreneurs to actively participate in development through effective communication mechanisms. To bridge the information gap and facilitate connections between the private sector and development partners, the ministry has launched the "HAFIZ Platform for Technical and Financial Support to the Private Sector," an electronic platform containing all financial tools, technical support services, initiatives, and tenders offered by international development partners.
In this context, the National Initiative for Smart Green Projects is one of the most important initiatives under the supervision of the Ministry of Planning, Economic Development, and International Cooperation. The initiative aims to stimulate innovative ideas and implement environmental solutions across all governorates of Egypt to address climate change challenges, in line with the state's efforts towards green transition and sustainable development. The ministry encourages project owners to present local solutions for climate change, showcase them on an interactive map, and connect them with funding entities to attract investments, aligning with the state's goal to localize Sustainable Development Goals at the governorate level.
The Minister highlighted the ministry's efforts to enhance strategic partnerships with development partners through bilateral and multilateral cooperation for sustainable industry. Recently, a project for "Sustainable Green Industry" was signed during the Egyptian-European Investment Conference, with facilitated funding from the European Investment Bank amounting to 135 million euros and a grant from the European Union of 30 million euros, managed by the European Investment Bank. This project extends from European development partners' funded programs, starting with the "Industrial Pollution Control" program in its three phases.
The program aims to support the green transition in the industrial sector by implementing climate and environmental sustainability measures, covering all governorates with the goal of eliminating industrial pollution and decarbonizing the industrial sector through renewable energy, green hydrogen, and biogas.
H.E. Minister Al-Mashat also mentioned that, in light of the financing package for Egypt within the framework of upgrading relations with the European Union to a comprehensive strategic partnership level, the first phase of the Memorandum of Understanding on "Macroeconomic Support and Budget Deficit Assistance" worth €1 billion was signed. This aims to implement a matrix of structural reforms, policies, and procedures to enhance the competitiveness of the Egyptian economy, improve the business climate, support macroeconomic stability, and drive the green transition. These three pillars represent the core of budget support programs funded by the World Bank, the African Development Bank, and various development partners.
H.E. Minister Al-Mashat added that the Ministry of Planning, Economic Development, and International Cooperation, in coordination with the European Union, is working on setting priorities of mutual interest to utilize the allocated financing for investment guarantees worth €1.8 billion in areas of common interest, including energy transition and security, digital transformation, food security, green transition, and resource efficiency.
These strategic partnerships aim to implement developmental projects in priority economic sectors such as industry localization, environment, energy efficiency, renewable energy, sanitation, and urban development through facilitated financing, grants, and debt swaps.
H.E. Minister Al-Mashat referred to the political announcement issued by the governments of Egypt, Germany, and the United States at the COP27 climate summit, which involves financing several programs supporting the energy axis of the "NWFE" program under debt swaps to increase the use of renewable energy sources, reduce greenhouse gas emissions, and advance the green transition.
In conclusion, H.E. Dr. Al-Mashat affirmed that the Ministry of Planning, Economic Development, and International Cooperation is working to advance the state’s efforts to focus on the two main elements: industrial development and human capital development, whether through public investments or cooperation with various international funding institutions and partners, aiming to achieve the overarching goal of creating a competitive economy attractive to investments and enhancing the competitiveness of the Egyptian economy to promote inclusive and sustainable growth.