Egypt is supporting the decarbonization of its steel industry, as investments in green modernization of steelmaking facilities will help maintain the competitive advantage of domestic producers in export markets. This was discussed at a meeting between Egyptian Minister of Trade and Industry Ahmed Samir and representatives of 137 international steel companies.
Samir emphasized the importance of the steel industry for Egypt's economy, supporting infrastructure, construction, and manufacturing sectors. In 2023, Egyptian steelmakers produced 9.8 million tons of steel, strengthening their position in the African market.
The government continues to prioritise the development of the steel industry and is considering increasing exports through ongoing global infrastructure projects, as Africa's economic growth drives demand for high-quality steel.
However, the minister acknowledged challenges for local steelmakers, including the introduction of the European Union's Carbon Border Adjustment Mechanism (CBAM). "Egypt needs to make a transition to low-carbon production to maintain its competitive advantage in exports.
The Ministry of Trade and Industry continues to support steelmakers in implementing cleaner production methods. In cooperation with leading companies, research centers, and technology providers, we are exploring innovative solutions, including electric arc furnaces and clean hydrogen.
These efforts will mitigate the impact of CBAM and position Egypt as a sustainable producer on the global stage," he said.
To further bolster the steel industry, Egypt plans to build an integrated flat-rolled steel mill with an investment of $1 billion. The plant's capacity will be about 1.8 million tons of flat products per year, primarily targeting export markets while also serving the domestic market.
Additionally, the International Finance Corporation (IFC) has provided a $25 million loan to support sustainable steel production in Egypt. These investments in green capacity modernisation aim to support the competitive advantage of local manufacturers in export markets while aligning with global decarbonization efforts.
