Egypt's Ministry of Industry recently hosted a roundtable discussion with German industrial companies operating or seeking to invest in the Egyptian market. The meeting, chaired by Minister of Industry Khaled Hashem, aimed to strengthen industrial and investment cooperation between the two countries. German Ambassador to Egypt Jürgen Schulz and Mustafa El-Bagoury, Chairman of the German-Arab Chamber of Industry and Commerce in Egypt, also attended the meeting.
Minister Hashem emphasized Egypt's efforts to attract more German companies, particularly small and medium-sized enterprises (SMEs) and firms specializing in advanced technologies. He highlighted Egypt's developed infrastructure, free trade agreements, skilled workforce, and strategic geographic location as advantages that could facilitate German companies' access to Middle Eastern and African markets. These factors are expected to support technology transfer, enhance local industrial efficiency, and establish stronger partnerships between companies in the two countries.
The Ministry of Industry is implementing a program to develop local suppliers and enhance their capabilities across various feeder industries. The program provides incentives for major companies to participate in qualifying local suppliers to meet their requirements and integrate into global supply chains. Additionally, the ministry is developing a "Qima" certificate to assess industrial establishments and link incentives to factories' efforts to increase local content, deepen manufacturing, develop suppliers, invest in technology and research and development (R&D), and recruit and train workers.
Minister Hashem also highlighted the National Automotive Industry Development Programme (AIDP) as a key tool for attracting major global automotive brands and localizing the automotive and feeder industries. The program links investment incentives to the level of local content and the localization of supply chains for conventional and electric vehicles. Several global companies have recently announced new investments in Egypt in tyre manufacturing, electric vehicle batteries, and production lines.
German Ambassador Jürgen Schulz expressed Germany's interest in expanding economic and industrial cooperation with Egypt and supporting the expansion of German companies in the Egyptian market. Trade between Egypt and Germany reached around €6bn last year, Schulz said, adding that German companies are interested in Egypt's investment opportunities and are looking to make new investments that would contribute to developing human capital and localizing industry and technology.
The roundtable discussion brought together 11 companies, including Bavaria Egypt, BSH Home Appliances, DMG MORI, Heidelberg Materials, Knauf, Kurz, Leoni Egypt, Mercedes-Benz, Siemens, Villeroy & Boch, and Cube Bikes. Minister Hashem welcomed the companies' expansion plans and said the ministry would work to address their challenges and support the expansion of their operations. Separately, Hashem and Schulz met with the German-Arab Chamber of Industry and Commerce to discuss strengthening its role in attracting German investors.
The German-Arab Chamber of Industry and Commerce is marking its 75th anniversary this year, while German companies have operated in Egypt for more than 100 years. The chamber's Chairman, Mustafa El-Bagoury, highlighted the role of German companies and the chamber in technology transfer, skills development, and job creation. The two sides agreed to explore providing the chamber with a list of priority sectors identified by the ministry to help target German companies specializing in those industries.
Key points
- Egypt aims to attract more German SMEs and firms specializing in advanced technologies.
- The Ministry of Industry is implementing a program to develop local suppliers and enhance their capabilities.
- Trade between Egypt and Germany reached around €6bn last year.
