Egypt pursues industrial localization through Chinese and French partnerships

Egypt is pursuing industrial localization strategies through new partnerships with Chinese and French entities to bolster domestic manufacturing in the agricultural and defense sectors.

In the agricultural sector, Egypt is working with China’s Institute for the Control of Agrochemicals (ICAMA) to transition from importing pesticides to domestic production. Following discussions between Agriculture Minister Alaa Farouk and Chinese officials, a draft cooperation agreement has been presented. The plan includes establishing an advanced pesticide factory using Chinese technology. Under a proposed model, the facility would be managed by Chinese experts for three years to facilitate technical training and technology transfer before transitioning to Egyptian management. In 2024, China supplied approximately $82.6 million of Egypt’s $237 million in pesticide imports.

Simultaneously, Egypt is expanding its defense industrial partnership with the French group Thales. Minister of State for Military Production Salah Soliman Gumblat met with Thales executives to discuss increasing local components and targeting export markets. The cooperation builds on the “Thales Benha” joint venture between Thales and the state-run Benha Electronics Company. The initiative aims to upgrade the manufacturing capabilities of state-affiliated factories through knowledge sharing and the integration of domestic companies into global supply chains.