DT Cairo : Nessma Youssef
Japan is planning a major new investment in Egypt with a proposal to build an entertainment city, complete with a hotel, next to the Grand Egyptian Museum. This announcement came from Japan’s Ambassador to Cairo, Oka Hiroshi, who emphasized the increasing interest of Japanese investors in the Egyptian market. The ambassador praised Egypt’s recent efforts to attract foreign investment, particularly the notable improvements in the Ministry of Industry’s approach under the Egyptian government’s leadership.
High-Level Talks on Expanding Investments
The news came during a meeting between Ambassador Oka and Kamel El-Wazir, Egypt’s Deputy Prime Minister for Industrial Development and Minister of Industry and Transport. The talks also included a delegation from Yazaki Corporation, led by Munemori Yamada, Chairman of Yazaki’s Europe, Middle East, and Africa operations. The discussions focused on Yazaki’s current investments and future plans in Egypt, as well as opportunities to enhance industrial and transportation cooperation between the two nations.
Major Investment in Automotive Sector
One of the key highlights of the meeting was the progress report on Yazaki’s ongoing project to establish a factory in Fayoum, dedicated to producing electrical systems for cars. The factory, which spans 67,000 square meters, represents a direct foreign investment of €30 million. Yazaki plans to export the factory’s entire production to major European automakers, with an expected export value of €100 million annually. The factory is also set to create around 3,000 direct jobs and 500 indirect jobs, with production slated to begin by March 2025. Additionally, Yazaki is considering establishing a logistics center covering 5,000 square meters.
Egyptian Government Support
During the meeting, Minister Kamel El-Wazir reaffirmed the Egyptian government’s commitment to supporting foreign investors, including companies like Yazaki, in overcoming any challenges related to industrial procedures. He also suggested a potential collaboration between Yazaki and Egypt’s Productivity and Vocational Training Authority, which would allow the company to manage a training center in Fayoum. This partnership aims to equip local workers with the latest skills and techniques used in Japanese industries to meet the factory’s demand for skilled labor.
Industrial Collaboration Opportunities
The discussions also touched on the potential for further collaboration between Egypt and Japan in the industrial sector. Minister El-Wazir proposed that Japanese companies consider setting up a manufacturing hub for cars, tires, and batteries in Egypt, geared towards export. He highlighted Egypt’s strategic advantages in the automotive industry and encouraged further exploration of joint industrial ventures. The meeting also reviewed the ongoing study of the extension of the first phase of Cairo Metro’s Line 4 into southern 6th of October City, which would serve the densely populated area.
Focus on Green Industries
Minister El-Wazir emphasized Egypt’s interest in partnering with Japanese firms on green industries, particularly in the manufacturing of renewable energy components such as solar panels, wind turbines, and green ammonia. He invited Japanese companies to establish projects in these fields, which could benefit both the Egyptian and Japanese economies while catering to local and international markets.
Advanced Technology Transfer
Yazaki’s Chairman, Munemori Yamada, noted that the company is considering expanding its manufacturing operations in Egypt, beyond the factory currently under construction. He pointed out the competitive advantages of the Egyptian market, including its skilled, low-cost labor force and modern infrastructure. Egypt’s extensive road network, developed over the past few years, played a pivotal role in Yazaki’s decision to invest in the country.
Commitment to Green Economy
Yazaki is also eager to collaborate with Egypt on green economy initiatives. The company has already partnered with Toyota on producing components for hydrogen-powered vehicles, reinforcing their commitment to sustainable industries.
Strengthening Egypt-Japan Relations
This growing cooperation between Japan and Egypt reflects the deepening ties between the two nations. It is a testament to Japan’s confidence in Egypt as a hub for technology transfer and industrial development. As both countries continue to collaborate on innovative projects, this partnership is poised to drive economic growth and sustainable development, benefiting local and international markets alike.
