One of the government’s biggest priorities for the past five years has been reducing imports of engineered consumer products by attracting FDI to those sectors. In September, the Ministry of Industry and Transport earmarked 28 industrial sectors for increased localization. One of these sectors is automotive manufacturing, an industry that experienced growth in the early 2000s when high-end German brands (Mercedes-Benz and BMW); Asian carmakers from South Korea and Japan; and American brands Chevrolet (General Motors) and Jeep (Stellantis) opened factories in Egypt to meet domestic demand. However, local, regional and global political, economic and geopolitical uncertainties have hurt the…
Author: Tamer Hafez
Until a few years ago, electric vehicles (EVs) were positioned as the future of personal mobility, with hybrid cars using internal combustion engines (ICE) and electric motors and batteries (EV drivetrain) to smooth the transition. That is changing as several automakers take different paths, with some investing in green hydrogen while others still prioritize developing ICE-powered cars until a viable alternative emerges. Egypt can accommodate all. EV imports were legalized in 2018, with incentives to import them and build charging stations announced in 2019. Meanwhile, the government plans to produce clean hydrogen in the Suez Canal Free Economic Zone. Lastly,…
Today’s automotive industry operates in a rapidly changing world, requiring companies and governments to clearly identify technological, social, and geopolitical changes impacting the industry and markets. “The global automotive industry stands amid a period of profound uncertainty,” noted Andrew Fellows, head of automotive and mobility at Star Global. In a May report titled “Global Automotive Industry Outlook: An East Meets West Perspective,” Star Global outlines the latest manufacturing and consumer demand trends, as well as geopolitical influences. Emerging east According to the report, Asian countries’ emergence as major auto manufacturing destinations is “no accident. It is the result of ……
Around the world, governments, agriculture companies, and individual farmers are increasingly concerned about how much food is grown and produced. “The globe currently faces numerous food-related issues, ranging from a lack of biodiversity to excessive waste, and from ill health caused by excessive consumption to widespread food insecurity,” Ahmed Zainul Abideen, a professor at the Faculty of Industrial Management at the University Malaysia Pahang in Malaysia, noted in a research paper. Those factors are intensifying the global food security problem. “By 2050, food demand is anticipated to increase [between] 59% [and] 98%,” Abideen noted. “This will shape agricultural markets in…
Improving Egypt’s food security and building a more environmentally friendly economy are two top priorities for the government, even if they sometimes conflict. According to Hannah Ritchie, science outreach lead at data curator Our World in Data, agriculture’s harmful impacts begin with “requiring large amounts of freshwater, which can cause significant environmental pressures in regions with water stress.” The second issue is that most conventional farming activity is a “crucial driver of climate change, responsible for around one-quarter of the world’s greenhouse gas emissions,” noted Ritchie. Meanwhile, EBSCO, a think tank, pointed out in a 2024 research paper that “cattle…
Egypt’s agriculture investment plan for fiscal year 2025/2026 is clear and ambitious. According to the Ministry of Planning and Economic Development (MPED), its annual state budget targets attracting $2.6 billion in private investment to the sector in fiscal year 2025/2026. That might prove challenging. Research notes from the UN Conference on Trade and Development (UNCTAD), World Bank, and S&P Global collectively take a cautious stance on the future of agriculture FDI. They also highlight factors in the MENA region that undermine FDI inflows and outline how individual countries can sustain their foreign investment levels. S&P Global: MENA’s gauntlet The MENA…
Egypt’s history and economy have always centered around the Nile’s fresh water and fertile mud. In 2024, the country was the world’s largest exporter of oranges and fresh strawberries. It was the third-largest global exporter of dried onions, fifth for potatoes, and seventh for fresh onions, frozen strawberries, and garlic, according to World’s Top Exports, a data aggregator. It was also the top exporter of mangoes in the Arab world and second in Africa. Other noteworthy exports include pomegranates and sweet potatoes. In fiscal year (FY) 2023/2024, the value of exported agricultural products accounted for 14% of Egypt’s total non-oil…
For business leaders, having a harmonious workplace where everyone can perform to their maximum potential is a long-standing ambition. One way to achieve that goal is to build a dignity-first business environment. “Our universal yearning for dignity drives our species and defines us as human beings,” Donna Hicks said in her book, “Leading With Dignity.” “It’s our highest common denominator.” Despite its importance, “we know so little about it,” Hicks stressed. “Although we are all born with dignity, we are not born knowing how to act in accordance with this truth. Learning how to honor dignity doesn’t come naturally; it…
Health security is a massively critical topic for African governments, as the continent “has 24% of the world’s disease burden,” according to African Mission Healthcare, an NGO. Jean Kaseya, director general of the Africa Centers for Disease Control, told the IFC that promoting local pharmaceutical manufacturing represents “the second independence of Africa.” The first was liberation from colonial occupation. That disease burden stems from Africa being the poorest continent, and that “many sub-Saharan countries rely heavily on imported pharmaceuticals, which can be prohibitively expensive … meaning that many people cannot access the treatments they need,” noted Africa Mission Healthcare. Additionally,…
For Egypt-based pharmaceutical producers, the global pharma market and supply chains are crucial for the industry’s future. From 2020 to 2024, the local pharmaceutical trade value (imports plus exports) increased by nearly 25%, according to Central Bank data, reaching almost $5 billion. That trade volume will increase significantly by 2030 as the government aims to raise exports from $811 million in 2024 to $1.2 billion in 2025, $1.4 billion in 2026, and $3 billion by 2030. That will inevitably lead to more imports, as Egypt has been importing five to seven times more than it exports since 2020 (excluding 2021,…