Registrations more than double as Egypt advances a programme combining private investment, factory restructuring and preferential finance to expand production and exports.
CAIRO, Egypt is negotiating potential acquisitions of around 30 distressed factories as part of a government-backed drive to restore idle industrial capacity, Industry Minister Khaled Hashem told Parliament’s Industry Committee on Monday.
The ministry is also assessing 51 factories for restructuring, while registrations for government assistance have risen from 36 in September to approximately 90 by 2 November. The figures reflect different stages of the recovery programme and may overlap; no completed acquisition has been announced.
The initiative gained momentum on 13 August, when Prime Minister Mostafa Madbouly’s Cabinet approved the establishment of an investment fund to rehabilitate financially troubled manufacturers through equity participation and restructuring.
In September, Hashem outlined a complementary EGP10bn preferential-financing initiative to help investors acquire distressed factories, purchase equipment and secure working capital. The initiative was subsequently reaffirmed in October, although actual disbursements have not been disclosed.
On 1 October, the Ministry of Industry and Central Bank launched the EGP1bn Distressed Factories Restructuring Fund, backed by five Egyptian banks, the Industrial Development Authority and investment manager CI Capital. The Financial Regulatory Authority authorised subscriptions from 4 October.
The fund will acquire equity stakes in viable manufacturers, combining capital injections with debt restructuring and operational improvements. Hashem told parliament that contributions could reach EGP30mn–50mn per factory. Separately, investors acquiring distressed plants may qualify for reduced-interest working-capital finance.
December could mark the programme’s first investment milestone. CI Capital fund manager Mahmoud Khalifa has indicated that the fund expects its first investment in a chemicals manufacturer, following the screening of approximately 100 opportunities and the shortlisting of eight. The factory has not been identified, and the proposed transaction has not been confirmed as part of the 30 acquisition negotiations.
The initiative represents a promising shift in Egypt’s industrial development strategy. Rehabilitating existing factories with land, licences, machinery and established infrastructure could restore production faster and at lower initial cost than building new plants. Successful recoveries could strengthen domestic supply chains, substitute imports, create employment and expand export capacity.
The first completed investment would demonstrate progress from policy to execution. The programme’s wider economic success will depend on how many factories resume profitable production, attract sustained private capital and generate measurable increases in industrial output and exports.
Related news:
- Egypt Offers 400 Industrial Units, Including Reclaimed Factories
- SCZone Nears 400-Factory Milestone as Egypt Deepens Suez Manufacturing
