Egypt plans to launch its first industrial investment fund by the fourth quarter of 2026, marking a shift toward equity-based financing for the manufacturing sector, according to a statement from the Ministry of Industry.

Minister of Industry Eng. Khaled Hashem said the fund will be the first of five planned vehicles designed to move the sector beyond traditional bank lending and toward longer-term investment models developed with private-sector participation.

“The Ministry is adopting an integrated plan to launch five investment funds,” the statement said, adding that the vehicles are intended to mobilize domestic savings and channel them into productive industrial activity.

The funds will target both existing factories and expansion projects, with the goal of reducing reliance on state budget support while encouraging private capital participation.

The announcement came during a visit to steel production facilities in the Suez Governorate, where Hashem toured the Al-Garhy plant, which has an annual capacity of 300,000 tons of rebar, and the Ezz Steel complex in Ain Sokhna.

The Ezz facility, which spans 3 million square meters and has capital of 6.5 billion Egyptian pounds, produces 2.2 million tons annually. The ministry said the group’s exports reached about $1 billion in 2025.

The initiative is part of a broader industrial strategy focused on increasing local manufacturing and reducing imports. Hashem said recent protective fees on raw billet were introduced following consultations with industry stakeholders and are subject to quarterly review to maintain market balance and comply with World Trade Organization rules.

The ministry is also prioritizing the transition to lower-carbon manufacturing. Plans include measuring factory emissions and supporting the use of renewable energy in industrial zones, particularly solar and wind, to stabilize energy supply and costs.

In parallel, the government is targeting annual vehicle production of 100,000 units, with local content exceeding 35%. Incentives include full land cost reimbursements for manufacturers that exceed production targets for both conventional and electric vehicles.

To support these efforts, the ministry is working with international partners to upgrade vocational training programs and align workforce skills with industry needs.