Planning Minister: Manufacturing and Maximizing Value-Added at the Core of Egypt's Economic Strategy

Cairo - Nadeh Imam: Minister of Planning and Economic Development, Dr. Ahmed Rustom, participated in the opening session of the World Bank Group’s Global Manufacturing Conference, under the theme “Manufacturing for Job Creation, Maximizing Value Addition, and Achieving Economic Prosperity.” The event was attended by Dr. Hussein Issa, Deputy Prime Minister for Economic Affairs; Eng. Khaled Hashem, Minister of Industry; Pablo Saavedra, Vice President of the World Bank Group for Prosperity; Femi Akinnirayo, Head of the Global Manufacturing Practice at the World Bank Group; and a number of World Bank leaders and global industry executives.

During his speech, Rustom emphasized the importance of the conference, which addresses a pivotal issue: manufacturing as a means to create jobs, maximize value addition, and achieve economic prosperity. He noted that in emerging markets and developing economies, sustainable growth, flexible job opportunities, and an expanded middle class are achieved only through actual production, increased industrialization, and exports.

The Minister of Planning and Economic Development pointed out that the main challenge, amid the reshaping of global supply chains and the growing role of technology in developing industrial systems, lies in building competitive industrial sectors, providing decent jobs for youth, and enabling economies to capture greater value added from their participation in global value chains.

He stressed the importance of leveraging the growing number of young people in the labor force and transforming them into a productive force, emphasizing that economic growth must be based on structural transformation that enhances productivity, expands the productive base, and provides formal and sustainable employment opportunities.

He highlighted two fundamental priorities: the first is moving up to higher stages of value chains, as real progress requires maximizing local value added; the second is providing sustainable jobs. He clarified that the industrial sector is distinguished by its ability to create jobs beyond the factories themselves, as each new job in the sector generates other indirect opportunities in transport, logistics, digital services, technical training, and engineering.

Regarding the state’s strategic vision to deepen industrialization as a pillar of the national economy, Dr. Ahmed Rustom affirmed that Egypt places industrialization and maximizing value added, led by the private sector, at the core of its national economic strategy. He explained that within the 2027–2030 economic transformation timeline, industrial policy will focus on three main axes, in light of the national industrial strategy formulated by the Ministry of Industry.

The first axis is empowering the private sector as an engine of growth by improving the business environment, removing structural obstacles facing investment, and providing clear and stable regulatory frameworks, thereby giving private-sector investors and industrialists the confidence needed to expand their operations and increase investments. He added that the second axis involves developing promising industrial clusters and transitioning to green manufacturing, starting with advanced automotive manufacturing and engineering industries, extending to production inputs, renewable energy components, and sustainable agricultural industries. He pointed to efforts to integrate green manufacturing principles into industrial zones, which will help Egyptian products meet modern international environmental standards, including the European Union’s Carbon Border Adjustment Mechanism.

The Minister of Planning continued that the third axis focuses on mitigating investment risks and providing financing mechanisms, noting that high initial investment costs represent one of the most prominent challenges facing the establishment and expansion of industrial projects.

In a separate context, the Minister of Planning and Economic Development addressed the national economic transformation program prepared by the government, explaining that it serves as a roadmap for the Egyptian economy for the coming years up to 2030. It aims to consolidate economic stability, enhance the resilience and quality of growth, empower the private sector and increase its contribution to growth and productivity, as well as improve citizens’ quality of life and provide decent jobs. He noted that the program is based on implemented reforms and focuses on five key sectors: agriculture, manufacturing, telecommunications and information technology, tourism, and energy. It aims to strengthen their role in the coming period to lead growth, attract investments, and support comprehensive economic development.

In conclusion, Dr. Ahmed Rustom emphasized that industrialization is not limited to assembling products, but goes beyond that to building an economy more capable of withstanding crises, enhancing social stability, and achieving shared prosperity. He stressed the importance of the conference as an opportunity to build effective partnerships that transform potential into production, and production into sustainable progress.