In the industrial city of El Sewedy, 7 companies are localizing Egyptian industrial expertise in Tanzania.
With investments of $50 million
Written by Ziad Abdel Fattah:
Seven Egyptian companies signed memoranda of understanding for privatization Industrial lands Inside the Al-Suwaidi Industrial City in Tanzania, in preparation for the establishment of new factories in the pharmaceutical, engineering, food and logistics sectors, with expected investments of about $50 million, on the sidelines of the Egyptian-Tanzanian Business and Investment Forum.
The agreements were signed during the presidential summit hosted by the Tanzanian capital, Dar es Salaam, which brought together Egyptian President Abdel Fattah al-Sisi and the President of the United Republic of Tanzania, Samia Hassan, as part of the Egyptian state’s approach to strengthening economic and investment cooperation with the Nile Basin countries and the African continent.
The signing ceremony was witnessed by Ahmed El Sewedy, CEO and Managing Director of El Sewedy Electric, and Mohamed El Qammah, CEO of El Sewedy Industrial Development, in the presence of Lieutenant General Kamel El Wazir, Minister of Transport, Khaled Hashem, Minister of Industry, and Mohamed Farid Saleh, Minister of Investment and Foreign Trade.
Localizing Egyptian industrial expertise within the African market
According to Elsewedy Electric, the agreements aim to localize Egyptian industrial expertise within the African market and support local manufacturing in Tanzania by establishing factories to produce strategic goods that meet the needs of the local market, while taking advantage of trade agreements that allow access to markets that include about 400 million consumers in East, Central and Southern Africa.
Al Suwaidi Industrial Development is responsible for developing and managing the project as the main industrial developer, implementing an integrated industrial zone on an area of 2.6 million square meters, with the project to be implemented in three phases extending over six years.
Al-Suwaidi is fully preparing the industrial lands.
The company fully equips the industrial lands by providing electricity, water, roads, communications, logistics, security, maintenance and facilities management networks, and then allocates the land plots to investors, while each company undertakes to build its factory and finance its production lines and equipment.
This model aims to reduce the time and cost required to start industrial activity, by providing a ready operating environment, along with “one-stop shop” services that include technical and advisory support, facilitating establishment and financing procedures, and providing labor and logistics services.
An Egyptian industrial project operating within Tanzanian territory
The El Sewedy Industrial City is an Egyptian industrial project managed within Tanzanian territory, transferring the experience of the Egyptian industrial developer to the African continent, without the city being an area administratively affiliated with Egypt, which contributes to attracting investments and facilitating the expansion of Egyptian companies within African markets.
The new factories aim to transfer Egyptian industrial technology and expertise to Tanzania, relying on local labor and developing supply chains based on raw materials and services available within the country, thereby enhancing the added value of local industry.
These investments also give Egyptian companies the opportunity to produce near the target markets, reduce shipping and transportation costs, and facilitate exporting to East and Central African markets, instead of simply manufacturing products in Egypt and exporting them to the continent.
Tanzania is strategically located on the east coast of Africa, serving as a trade gateway for several landlocked countries that rely on Tanzanian ports for trade. This makes it a suitable center for manufacturing and re-export, contributing to the strengthening of economic integration and regional supply chains.
Regarding the company’s activities within Egypt, Elsewedy Industrial Development owns an industrial land portfolio exceeding 60 million square meters distributed across strategic areas, including 10th of Ramadan, 6th of October, Ain Sokhna, Sadat, and Borg El Arab.
The industrial zones developed by the company include about 700 investors from Egypt and more than 20 different nationalities, while the investments of companies operating within them have exceeded $10 billion since the start of activity, with foreign investments representing about 50% of that, reflecting the confidence of investors in the Egyptian industrial sector and the ability of the industrial development model to attract investments inside and outside Egypt.
