Egypt unveils integrated plan to boost pharmaceutical, garments exports

2026-03-02 - 15:24

Egypt’s Ministers of Investment and Foreign Trade, Industry, and Labour have held two high-level meetings with key industry stakeholders as part of a coordinated government drive to strengthen the competitiveness of the pharmaceutical and ready-made garments sectors, increase exports, and deepen local manufacturing. Pharmaceutical sector roadmap The first meeting brought together Minister of Industry Khaled Hashem and Minister of Investment and Foreign Trade Mohamed Farid Saleh with pharmaceutical manufacturers and representatives of the Export Council for Medical and Pharmaceutical Industries. The session was attended by Deputy Minister of Higher Education Hossam Othman, alongside officials from the Sovereign Fund of Egypt, the Egyptian Drug Authority, and the Financial Regulatory Authority, as well as representatives from other trade and investment bodies. Discussions focused on setting an executive roadmap to develop the medical and pharmaceutical industries, with emphasis on localising production, increasing the domestic component in manufacturing, integrating scientific research into industrial processes, and expanding into new export markets to ensure sustainable growth. Hashem affirmed the Ministry of Industry’s readiness to provide full support in linking industrialists with researchers to facilitate pharmaceutical manufacturing projects. He highlighted the importance of leveraging advanced technologies and artificial intelligence in drug development research to reduce time, effort, and costs. He noted that the pharmaceutical industry receives significant government backing, particularly in industrial financing and export support, given its dual role in meeting domestic demand and boosting exports. The ministry, he added, is working to enhance the efficiency of existing factories through technical support programmes and technological upgrades, while ensuring compliance with international quality standards and foreign registration requirements. For his part, Farid described medical industries as a strategic pillar for expanding exports and opening new markets, particularly in Africa and other high-potential regions. He said the ministry is activating financing tools and investment incentives to support manufacturers and align them with external expansion plans, improving access for Egyptian products to global markets. Farid stressed that deepening local manufacturing and localising the production of pharmaceutical raw materials are top priorities to reduce import dependence and strengthen drug security. He added that attracting investment in biotechnology and advanced manufacturing would raise value added and enhance Egypt’s regional and global competitiveness. He also underlined the importance of strengthening cooperation between universities, research centres and industrial firms to accelerate drug discovery, medical data analysis and innovation cycles, while coordinating with relevant authorities to streamline licensing procedures and provide diversified financing tools to support expansion. Representatives of the pharmaceutical export council welcomed the outcomes of the meeting, highlighting the importance of stronger public-private partnerships to overcome operational and marketing challenges in international markets. Strengthening garments competitiveness In a separate but related initiative, the three ministers convened a joint meeting with members of the Export Council for Ready-Made Garments, with participation from six government entities, including the Financial Regulatory Authority, the General Authority for Investment and Free Zones, the General Organization for Export and Import Control, the General Authority for Exhibitions and Conferences, and the Egyptian Commercial Service. The meeting aimed to enhance the competitiveness of Egypt’s ready-made garments industry by developing financing tools, upgrading training and technology across production chains, and strengthening institutional coordination between government entities and the private sector. Farid said that improving operational systems within the industrial sector is essential to stabilising production processes and enhancing product quality. Discussions addressed ways to improve the work environment, including resolving labour-related challenges through flexible mechanisms that balance the interests of employers and employees while ensuring continuity of production. He emphasised the importance of expanding specialised training programmes to raise workforce efficiency in line with rapidly evolving global production patterns, noting that building a skilled labour base is central to supporting industrial growth. Farid added that the next phase will focus on supporting the sector’s expansion into foreign markets and maximising the benefits of international trade agreements. The export rebate programme will continue, linked to company performance indicators to incentivise export growth and achieve ambitious national export targets. Hashem reaffirmed the Ministry of Industry’s commitment to localising and strengthening the ready-made garments industry across all stages of its value chain, increasing value added and enhancing competitiveness both domestically and globally. He noted that garments remain among Egypt’s most competitive industries, benefiting from a solid reputation and longstanding partnerships with major international brands. He also pointed to the ministry’s regular offering of fully serviced industrial land every three months through the Digital Egypt Industrial Platform. The latest offering includes 1,272 industrial land plots covering nearly 9.78 million square metres across 35 industrial zones in 23 governorates, with around 800 plots allocated in Upper Egypt to support balanced regional development. Minister of Labour Hassan Raddad listened to exporters’ concerns regarding working hours, minimum wages and foreign labour permits, affirming the ministry’s commitment to removing investment obstacles and improving the work environment. He stressed the importance of fostering decent working conditions that enhance productivity and exports while maintaining balanced labour relations and job security. Garment exporters, in turn, expressed appreciation for the government’s engagement, highlighting the need for technical support, specialised training, flexible energy pricing, improved customs clearance procedures and smart manufacturing solutions to boost productivity, reduce waste and strengthen supply chain resilience.