Egypt Invests EGP 7.3 Billion in Advancing Defense Manufacturing
Egypt’s Ministry of State for Military Production has devised a comprehensive strategy to enhance the country’s military manufacturing framework, at an expenditure of EGP 7.3bn.
The strategy encompasses fulfilling the requirements of the Armed Forces from 2020 to 2030, with plans to channel any surplus towards exports from 2025 to 2030.
Daily News Egypt has uncovered the specifics of this strategy, which involves: amplifying local production; boosting the significance of technical research; fostering partnerships with global firms; and completing the upgrade and rehabilitation of production lines.
The Ministry of State for Military Production has organized a strategy to enhance ammunition production in collaboration with the Ministry of Defence, costing EGP 2.8bn.
This strategy aims to upgrade ammunition production lines comprising all varieties of munitions, components, and explosives across eight facilities. The goal is to expand the capacity for small arms ammunition to approximately 73 million units, compared to the current output of 50 million.
Moreover, there will be an added increase in the manufacturing of certain components for medium artillery, along with local production of components for medium munitions. Further growth will be noted in the production capacity of heavy ordnance to 80,000.
The financial outline for the fiscal year (FY) 2019/20 for ammunition production was around EGP 300m, while FY 2020/21 reflected an investment of about EGP 980m. Concurrently, roughly EGP 1.537bn will be allocated for ammunition production in FY 2021/22.
The Ministry of Military Production has also constructed a plan to enhance the production of arms and equipment in cooperation with the Armed Forces’ Armament Authority and the Weapons and Ammunition Department, valued at EGP 4.5bn.
The budget for weapons, equipment, and armor production development is segmented into three phases. The first phase is estimated at around EGP 1.355bn, the second phase at EGP 1.340bn, and the third phase at EGP 1.855bn.
The ministry’s forward-looking vision includes the initiation of a comprehensive medium-range air defense system, the production of an Egyptian tank, and the conceptualization and fabrication of a protective system for armored combat vehicles.
Over the past six years, specifically from July 2014 to June 2020, several focal points have been tackled to fulfill the primary goals of the government’s agenda. This includes devising a plan to enhance performance and strengthen capabilities.
The second focus has been to accelerate efforts in the war products sector, followed by maximizing the utilization of surplus production capacities. Establishing new production lines and industrial enterprises serves as the fourth key area.
The Ministry has also crafted a targeted training initiative in collaboration with specialized training entities such as: the Arab Academy for Science, Technology and Maritime Transport (AASTMT); the American Chamber of Commerce (AmCham) in Egypt; the American University in Cairo (AUC); and the National Planning Institute (NPI). This initiative aims to boost the competency of the workforce, particularly among youth.
The Ministry is committed to embracing a vision that reinforces its role as a leading industrial entity, serving as a vital provider for the Armed Forces. It aims to generate added value for the Egyptian economy and contribute to national and development projects in line with the state’s sustainable development strategy.
dailynewsegypt
