Cairo: Minister of Industry Khaled Hashem affirmed the strength of the relations between Egypt and Japan, which are based on mutual trust and a strategic partnership. Hashem noted that relations between the two countries were elevated to the level of a strategic partnership in 2023, reflecting the shared vision of the political leaderships in both Egypt and Japan to deepen cooperation in key areas including industry, technology, investment, and sustainable development.
According to State Information Service Egypt, Minister of Industry Khaled Hashem emphasized the importance of cooperation between the two countries, particularly given Japan's global recognition for its industrial excellence, technological innovations, and the high quality of its products. He also highlighted Egypt's ongoing transformation aimed at solidifying its position as a regional hub for industry, logistics, and international trade.
This came during the Minister's address at a seminar organized by the Japanese Embassy in Cairo, titled "Trends in Japanese Investment Abroad and Ways to Enhance Industrial and Economic Cooperation between Egypt and Japan." The seminar was attended by Ambassador Fumio Iwai, the Japanese Ambassador to Cairo, and Mr. Inoue Hiroki, President of the Japan Business Association.
The minister said that Japanese companies play a pivotal role in Egypt's industrial development, with over 100 Japanese companies currently operating in the country, primarily in the manufacturing sector. These companies contribute significantly to technology transfer, job creation, and industrial capacity building. Their investments span several strategic sectors, including the automotive and auto parts industry, engineering and electronics, pharmaceuticals and medical industries, and food processing, in addition to energy and infrastructure projects. He noted that Egypt is proud to host leading Japanese companies such as Toyota, Nissan, Sumitomo, Yazaki, Mitsubishi, Toshiba, and Sharp, which continue to expand their operations in Egypt. Recent industrial projects reflect the strength of this partnership, including the establishment of the Yazaki automotive wiring harness manufacturing plant in Fayoum, the expansion of Sumitomo's operations, the Torishima plant in the Suez Canal Economic Zone, and the Saraya plant in Ain Sokhna.
Hashem explained that Egypt is currently developing an ambitious national strategy for industrial development, aiming to bolster local manufacturing industries, deepen industrial value chains, and transform Egypt into a competitive manufacturing and export hub. To support this vision, Egypt offers several key advantages to foreign investors, including a strategic geographic location connecting Africa, Europe, and Asia; access to markets exceeding 2 billion consumers through free trade agreements; modern infrastructure encompassing ports, logistics corridors, and industrial zones; and a comprehensive framework of investment incentives and streamlined procedures.
Minister of Industry Khaled Hashem noted that among the most important initiatives launched by the Egyptian government are the Golden License for strategic investment projects, the Industrial Developer Model for the efficient management of industrial zones and serviced industrial land, and programs to support local manufacturing industries and supply chains.
The Minister pointed out that the automotive industry is a priority sector in Egypt, where a comprehensive program is currently being implemented to develop the sector. This program aims to increase the local component in car manufacturing, attract global car manufacturers, and support the transition to electric vehicles and clean transportation.
Minister of Industry Khaled Hashem noted that Japan is a strategic partner for Egypt due to its global leadership in automotive engineering and advanced manufacturing technologies.
The Ministry of Industry also sees promising opportunities to expand cooperation in several emerging sectors, including renewable energy components, green hydrogen and sustainable fuels, industrial machinery and advanced engineering industries, electronics and semiconductor manufacturing, medical and pharmaceutical industries, as well as smart manufacturing and digital transformation.
Hashem noted that Egypt welcomes the establishment of a Japanese industrial zone within the Suez Canal Economic Zone, which could serve as a strategic manufacturing base for Japanese companies targeting regional and global markets. He pointed out that Egypt encourages increased Japanese investment and believes that economic cooperation should be mutually beneficial. Egypt welcomes greater participation of Egyptian companies in the Japanese market, particularly in sectors where Egypt enjoys a competitive advantage, such as agricultural and food products, textiles and apparel, processed foods and natural extracts, and industrial and intermediate goods.
The minister added that Egypt looks forward to working closely with Japanese partners and institutions, such as the Japan External Trade Organization (JETRO), to facilitate and strengthen trade ties and explore opportunities for Egyptian companies seeking to expand in the Japanese market.
Minister of Industry Khaled Hashem invited Japanese companies to expand their investments in Egypt and emphasized the importance of Egyptian companies exploring further opportunities available in Japan.
Hashem pointed out that the partnership between Egypt and Japan embodies these principles that the two countries seek. By combining Japanese technological capabilities with Egypt's strategic location and growing industrial base, a strong platform for industrial cooperation can be built that benefits both countries and contributes to regional economic development.
Minister of Industry Khaled Hashem noted Egypt's commitment to providing a stable, transparent and attractive environment for investors that encourages international partnerships and sustainable industrial growth.