Facing an import bill for iron and steel exceeding 5 billion dollars, Egypt is banking on an ambitious national strategy to revive its steel industry. Thanks to its natural resources, workforce, and geographical position, the country hopes to become a regional export hub, provided it can overcome several structural challenges.
To reduce its dependence on iron and steel imports, estimated at 5.179 billion dollars in 2024, and to leverage its strategic geographical position, Egypt launched a national strategy on September 28 aimed at strengthening its steel industry. This strategy focuses on new technologies, local integration, export development, and attracting investments, particularly foreign ones.
“It is important to note that since September 28, the country has launched a national strategy aimed at strengthening its steel industry — that is, the sector focused on transforming iron ore into iron and steel. Clearly, this strategy can be seen as an import substitution policy, given that Egypt aims to reduce its long-term dependence on iron and steel imports.”
Lionel Raynald Ngolle III, Expert in Economic Affairs – Cameroon
Experts highlight Egypt’s legitimacy to become an export hub for iron and steel, thanks to its mineral deposits and abundant, low-cost workforce. In 2023, it produced 9.8 million tons of steel, confirming its leadership in Africa. If it overcomes the project’s challenges, it could generate more than 10 billion USD annually, create hundreds of thousands of jobs, and become a key player in sustainable development on the continent, according to experts.
“Egypt must indeed implement appropriate policies to develop a skilled and resilient workforce capable of advancing the country’s steel industry. In addition to the workforce, the business climate should also be highlighted.”
Lionel Raynald Ngolle III, Expert in Economic Affairs – Cameroon
According to experts, for Egypt to succeed, it will need to stabilize its economy, attract investments, control its costs and access to energy, train its workforce, ensure a clear regulatory framework, and meet global environmental standards.
