Egypt launches ambitious development strategy for public-sector enterprises

Egypt Today

05-02-2025

CAIRO – 5 February 2025: The Egyptian government is rolling out an extensive modernization plan to upgrade and enhance the efficiency of public-sector enterprises across various industries, including mining, steel, textiles, real estate, and urban development.
In a recent meeting, Prime Minister Mostafa Madbouly met with Minister of Public Business Sector Mohamed Shimi to assess the progress of these development projects. Discussions focused on revitalizing state-owned companies, optimizing resources, and attracting private sector investments to improve operational efficiency and ensure long-term sustainability.
To strengthen industrial output, the government is executing key projects. El Nasr Mining Company is leasing two phosphate washing plants to a private company to increase the value of phosphate ore. Additionally, a phosphate ore concentration project is in progress, backed by an investment of $305 million.
In the steel sector, Delta Steel Company has introduced two billet production lines with a total capacity of 500,000 tons per year.
The first phase has been completed, while the second phase is approaching final delivery. Similarly, El Nasr Pipes Company is developing two new production lines: one for longitudinal welding pipes with a capacity of 25,000 tons per year, and another for seamless pipes, capable of producing 5,000 tons per year, with a total investment of $200 million.
The Glass & Crystal Company is also advancing its operations with the establishment of a solar glass production unit. This project, valued at EGP 327 million, is expected to yield an annual output of 25,500 tons, contributing to the country's renewable energy sector.
Egypt is making significant investments in real estate and urban expansion, particularly through the Heliopolis Company for Housing & Development. This initiative aims to enhance infrastructure, develop new urban areas, and increase the supply of residential and commercial spaces.
A major focus of the government's strategy is the revitalization of the textile sector, a historically vital part of Egypt's economy. The Misr Spinning & Weaving Company in Mahalla is undergoing a large-scale development project worth EGP 9.1 billion, with an additional €289.5 million allocated for state-of-the-art machinery.
In Kafr El-Dawar, the Egypt Spinning & Weaving Company is receiving EGP 8.3 billion for construction, alongside $129.65 million for new equipment. Similarly, the Damietta Textile Company is undergoing a EGP 4.6 billion redevelopment, with €71.7 million earmarked for modern machinery. Additional investments include EGP 2.5 billion for the Helwan Textile Company and EGP 1.1 billion for the Upper Egypt Textile Company, each receiving further funding for equipment upgrades.
During the meeting, Prime Minister Madbouly emphasized the crucial role of private sector partnerships in advancing these projects. He stressed the need for strategic collaborations, particularly in the textile industry, to ensure efficient management, optimized operations, and long-term sustainability.
Egypt's ambitious development agenda underscores its commitment to industrial growth, economic expansion, and urban transformation. By leveraging private investments and modernizing infrastructure, the country aims to position its public enterprises as globally competitive and high-performing entities that drive sustained national economic progress.