Egypt - Green Growth: Industrial Waste Management and SME Entrepreneurship Hub

Driven by the private sector and accounting for almost 20% of the GDP and 23% of employment, the industrial sector is critical for Egypt’s economic growth and for employment generation. Traditionally focused on heavy and labor-intensive sub-sectors such as iron, steel, petroleum, spinning and weaving, the industrial sector has evolved and diversified over the years to include agro-processing, ready-made garments and leather manufacturing, paints and tiles, furniture, automotive feeding industries, etc. The government has supported the industrial sector through various initiatives including the creation of industrial zones, the establishment of dedicated specialized councils representing the private sector and advocating for their demands, facilitation of private public partnerships and provision of support services through specialized entities such as the Industrial Council for Technology and Innovation and its affiliated technology and innovation centers. Given that SMEs make up 99% of the non-agriculture private sector, they are crucial stakeholders in the industrial sector both in terms of firms operating in the sector as well as feeding industries for the larger private and public sector firms. According to a 2012 census conducted by the Egyptian Banking Institute, 51% of SMEs operate in the manufacturing sector, largely in the food and beverage sub-sector followed by the textile sub-sector. It is estimated that SMEs account for a substantial percentage of GDP and for 75% of employment.