Industry & Retail
From The Report: Egypt 2022
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Egypt has made some progress in improving industrial development, but the government is working to focus on specialisation in certain segments – particularly textiles and pharmaceuticals. Indeed, scaling up investment in manufacturing is a policy priority, as the country’s value-added growth in this sector has been sluggish compared to other emerging economies. Namely, the country aims to accelerate industrialisation and shift from low-value-added to high-value-added, technology-intensive manufacturing segments. Nonetheless, despite Covid-19 pandemic-induced economic headwinds, the Egyptian retail sector has made significant progress in recent years, particularly in food retail and e-commerce. These segments saw rapid growth due to lockdowns and rising internet penetration rates. In FY 2019/20 and FY 2020/21 the private sector’s share of total investment in the retail and wholesale sectors amounted to 95% of the total, at $9.5bn and $7.4bn, respectively.

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Overview

Focus on local: Higher-value-added activities targeted as emphasis shifts towards more sustainable, technology-intensive manufacturing
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Egypt’s industry and manufacturing sector, which accounts for around 15% of total GDP, plays a prominent role in the country’s economic development agenda, which emphasises innovation, sustainability and enhanced ties with the African continent. Indeed, scaling up investment in manufacturing is a policy priority as the country accelerates industrialisation and shifts from low-value-added to high-value-added, technology-intensive manufacturing segments. Structure & Oversight The Ministry…

Overview

Diverse approach: A mix of legislation, private investment and consumer spending is spurring steady growth in the retail market
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Egypt’s rising population, affluent middle class, and emerging secondary cities have led to rising sales growth in shopping malls, convenience stores, supermarket and hypermarket chains, and e-commerce platforms. Recent government legislation supporting the development of commercial retail spaces has also encouraged the private sector to make significant investment in the space, particularly in the form of new malls, food retail and digital marketplaces. While the first year of the Covid-19 pandemic…

Analysis

Primed for growth: Digital transformation and a surge in online shopping position the e-commerce segment for future development
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Egypt’s young, urban and tech-savvy population and well-connected middle class, combined with rising internet and mobile penetration rates, are driving the expansion of e-commerce. Confidence in the space has grown considerably since the onset of the Covid-19 pandemic, with sector revenue increasing at a rate of around 30% in 2018 and 2019 before escalating to almost 70% in 2020 and over 40% in 2021 as consumers ordered more goods – especially groceries – online and the authorities took steps…