Egypt, Japan deepen industrial cooperation across key sectors

Egypt is intensifying efforts to expand industrial cooperation with Japan, identifying the automotive, pharmaceutical and electronics sectors as priority areas for investment, technology transfer and export growth.

Minister of Industry Khaled Hashem outlined these priorities during talks in Cairo on April 28, 2026, with Japanese Ambassador Iwai Fumio and his delegation. The discussions focused on scaling existing Japanese investments, advancing localisation of technology and exploring new opportunities across Egypt’s manufacturing landscape.

Hashem emphasised that Egypt is keen to leverage Japanese expertise to deepen domestic industry and build local capabilities, particularly in high-value manufacturing segments. The automotive sector remains central to this strategy, supported by a national programme targeting annual production of 100,000 vehicles by 2030.

As part of this momentum, Japanese automaker Nissan Motor Corporation has signed a $45 million investment contract with the Egyptian government to manufacture a third model at its plant in Egypt. The company has also allocated an additional $2 million to increase production capacity to more than 30,000 vehicles per year starting in 2025, reinforcing its long-term commitment to local manufacturing.

Around two months ago, Mohamed Abdel-Samad, Managing Director – Africa at Nissan Motor Corporation, shared on social media that the company had engaged with Mohamed Farid Saleh to discuss Nissan Africa and Egypt’s expansion plans, increased production and export growth strategy. The interaction underscored ongoing alignment between government priorities and private sector investment plans.

Nissan’s broader investment programme includes $25 million in direct spending to upgrade production lines and $20 million in indirect investments aimed at strengthening local suppliers, advancing technology and enhancing workforce capabilities. These efforts have enabled the company to scale production capacity, with further potential to reach 50,000 units annually in the coming years.

Export performance has also strengthened, with Nissan Egypt shipping around 25,000 vehicles to international markets between 2022 and 2025. The company reported steady annual export growth of 15–20% over this period, supporting Egypt’s position as a regional automotive export hub, particularly within Africa under frameworks such as the African Continental Free Trade Area (AfCFTA).

Beyond automotive, both countries are exploring collaboration in pharmaceuticals, including medical devices and equipment, as well as electronics manufacturing. These sectors are seen as critical for diversifying Egypt’s industrial base and advancing higher-value production.

Egypt’s strategic location, trade agreements enabling access to African and Middle Eastern markets, skilled workforce and investment-friendly policies were highlighted as key advantages for attracting Japanese investment.

The Japanese side reaffirmed its commitment to strengthening economic cooperation, noting that current investments already span automotive components, home appliances, renewable energy, water treatment and green industries. Interest among Japanese companies in expanding their presence in Egypt continues to grow, supported by efforts to improve the investment climate and facilitate business engagement.

The discussions build on the strategic partnership established between Egypt and Japan in 2023, reflecting deeper alignment in industry, technology and sustainable development, and signalling further opportunities for supply chain integration and export-led growth.