Egypt is stepping up its efforts to become a regional manufacturing powerhouse. Prime Minister Mostafa Madbouly’s recent tour of the country’s largest industrial zone, the 10th of Ramadan industrial zone, underscored this commitment.

The visit highlighted the presence of factories from four major mobile phone manufacturers—Samsung, Vivo, Oppo, and Xiaomi—all of which agreed to set up shop in Egypt. 

The visit aimed to showcase Egypt’s capabilities and entice major players like Apple. Madbouly’s tour included a factory producing high-quality sanitary devices for international brands, exemplifying the focus on quality manufacturing.

This push aligns with president Abdel Fattah el-Sisi’s vision to expand and strengthen the industrial sector. The government is actively courting major global companies to create high-value-added products in Egypt and foster an investor-friendly environment.

Efforts include improved communication with international investors and manufacturers, offering support for expansion plans, particularly those geared towards exports.

This aggressive strategy to diversify Egypt’s industrial base and boost exports is a cornerstone of the nation’s economic plan. It aims to secure a more prominent position in the global financial landscape and reduce import dependence, easing pressure on foreign reserves.

The government’s efforts are paying off. Global ratings agency Fitch recently revised Egypt’s outlook to “positive” from “stable,” citing reduced external financing risks and stronger foreign direct investment. 

This follows billions of dollars flowing into Egyptian treasury bills since the IMF loan program announcement. Additionally, support from the UAE and increased foreign portfolio investment helped shrink Egypt’s net foreign assets deficit.

Fitch acknowledged initial steps to control off-budget spending, which could mitigate public debt risks. However, Egypt still faces challenges. 

The country grapples with an ongoing economic crisis and persistent foreign currency shortages. Its foreign debt climbed in the fourth quarter of 2023, reaching $168 billion.

While Moody’s also revised its outlook to “positive” earlier this year, it cautioned about the high debt burden.