Investing in the electronics industry

Date: 15 - 05 - 2024


Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

Investing in the electronics industry in Egypt is considered a promising investment opportunity with bright prospects, especially in light of the economic strategy pursued by the Egyptian government to develop the industrial sector, which aims to raise Egyptian exports to exceed $100 billion by 2050. The electronics sector represents a major pillar of this strategy, considering The Egyptian market is one of the largest electronics markets in Africa.

In recent years, the electronics sector in Egypt has witnessed remarkable growth, with the market size reaching about $7 billion, and it is expected to rise to $10 billion by 2025. This growth is due to several factors, including the increasing demand for electronics, and extensive government support for foreign investors. The availability of a skilled and young workforce, in addition to the distinguished geographical location that makes Egypt a gateway to African and European markets.

However, this sector faces many challenges, including the shortage of electronic chips, the significant rise in raw material prices, and international trade barriers, in addition to the urgent need to maintain advanced technology and continuous development, which requires large financial investments and continuous efforts.

In order to overcome these challenges and make the most of the available opportunities, policymakers and the Egyptian government must take strategic steps. Firstly, the focus should be on stimulating investments in advanced technologies, research and development, to ensure improving the competitiveness of Egyptian products and increasing the added value of exports.

Expectations indicate that developing technological infrastructure and modernizing factories can contribute significantly to reducing production costs and increasing efficiency. The government must strengthen its partnerships with international companies to transfer technology and develop local competencies, which will contribute to creating an environment conducive to innovation and technological development.

It is also important to focus on improving supply chains and addressing the shortage of electronic chips and other essential components, through regional and international cooperation to ensure the stability of supply chains and limit price fluctuations.

In addition, it is necessary to update legislation and regulations to promote investment, facilitate the establishment of companies, and encourage emerging projects in the field of electronics. These measures must be well thought out to achieve a balance between protecting the environment and promoting industrial growth.

Finally, it is important for the Egyptian government to develop a comprehensive strategy for the sector, which includes skills development and technical and vocational education in line with international standards, to qualify Egyptian youth to work in this vital sector and contribute to its growth and development. The thoughtful measures will build a path through which Egypt can assume a leading position in the electronics industry at the regional level and achieve sustainable economic development that keeps pace with global technological progress.