Egypt's pharmaceutical sector gearing up to inject $80M to bolster local production
The expansion will bring the total number of operational pharmaceutical production lines across Egypt to 810, according to Gamal El Leithy, Chairman of the Chamber of Pharmaceutical Industry at the Federation of Egyptian Industries, speaking to Asharq Business.
This increase is expected to play a key role in replacing approximately $3 billion worth of annual pharmaceutical imports with locally produced alternatives.
Local manufacturers currently supply around 91 percent of the country's pharmaceutical needs. The sector has seen robust growth, with total medicine sales surging by over 40 percent last year to reach LE 307 billion.
Pharmaceutical sales in January and February alone climbed to LE 62 billion, up from about LE 40 billion in the same period the previous year.
The growth was largely driven by an uptick in production volume, particularly in packaged medications, according to previous comments by Ali El-Ghamrawy, head of the Egyptian Drug Authority.
Looking ahead, Egypt is aiming to localize the manufacturing of high-priority and specialized medicines. El Leithy said key targets include cancer treatments, immunodeficiency drugs, medical imaging dyes, and infant formula. These efforts form part of a strategic national plan to raise pharmaceutical exports to $3 billion by 2030.
Recent export data suggests that momentum is already building. In the first quarter of 2025, exports of pharmaceutical and medical products rose 25 percent year-on-year, reaching $205 million, according to figures from the General Organization for Export and Import Control.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily News Egypt
a day ago
- Daily News Egypt
Egypt's PM reviews efforts to support local pharmaceutical industry
Egyptian Prime Minister Mostafa Madbouly on Sunday chaired a meeting to review efforts to support and develop the country's pharmaceutical industry, with the aim of boosting local manufacturing and attracting more foreign investment. The meeting was attended by the Deputy Prime Minister for Human Development and Minister of Health and Population, Khaled Abdel Ghaffar, the Minister of Finance, Ahmed Kouchouk, and the heads of the Egyptian Drug Authority (EDA) and the Egyptian Authority for Unified Procurement (UPA). Madbouly affirmed the government's interest in providing all necessary support for the growth and localisation of this vital industry. He noted that Egypt has a long history in pharmaceuticals, with large industrial facilities, and possesses promising advantages for further progress, including a large domestic market and access to nearby regional markets. During the meeting, EDA Chairman Ali El-Ghamrawy presented a report on the state of the industry. He stated that the sector is nationally stable and has achieved significant jumps in local market sales in 2024 compared to 2023, with positive expectations for continued growth in 2025. El-Ghamrawy confirmed that there is a secure level of coverage for various therapeutic groups, including hormones, cardiovascular drugs, oncology products, and corticosteroids. He also assured that there is a safe strategic stock of pharmaceutical raw materials, sufficient for three to six months. The EDA chairman highlighted the growth of foreign companies in the Egyptian market, noting that their sales in 2024 saw a 43% increase compared to 2023. He attributed this progress to several measures taken by the EDA to attract international firms, including monitoring modern and innovative products, a reference-based registration process that reduces approval times from two years to as little as two months, a unified electronic registration system, and support for localisation projects. El-Ghamrawy also noted that the EDA provides about 979 essential regulatory services to support the pharmaceutical industry and has not increased the fees for these services in the past two years.
Egypt Independent
2 days ago
- Egypt Independent
State keen on encouraging tourism investments, esp. on North Coast
NEW ALAMEIN, Egypt, Aug 2 (MENA) – The State is keen on encouraging tourism investments, especially on the North Coast, a unique part of Egypt, which helps promote opportunities for tapping into the promising potential and advantages of this region and turning it into a tourist and economic hotspot all year round, Prime Minister Mostafa Madbouly said. Madbouly made the remarks while participating in the opening ceremony a new hotel of Emaar Misr for Development, a leading real estate developer, in Marassi North Coast resort, in the presence of Mohamed Alabbar, founder of Dubai-based real estate developer Emaar Properties. As the 11th hotel in Marassi portfolio, the new 'Palace Beach Resort Marassi,' hotel was established with an estimated investment cost of LE nine billion, marking a new milestone in Emaar Misr's 18-year journey in the Egypt. The inauguration of the new hotel is the latest move in Emaar Misr development's strategy to redefine the concept of luxury tourism by offering hotel experiences on par with major international destinations. This step has been taken amid the rapid recovery of Egypt's tourism industry, buoyed by the State' vision to enhance its position on the global tourism map by combining the country's rich history with diverse natural environment and ongoing infrastructure development. Emaar Misr for Development continues to play a prominent role in supporting this industry by offering integrated projects that meet the highest standards of luxury, especially in the North Coast region, which has become one of the most luxurious tourist destinations in Egypt. Occupying an area of about 140,000 square meters, the new hotel features 87 rooms and suites with striking views, as well as 31 luxury villas, along with a wide range of integrated facilities and services, including a meeting room, beach restaurant, gym, swimming pool, spa, and beauty salon, offering an integrated accommodation experience with world-class standards. (MENA)
Egypt Independent
5 days ago
- Egypt Independent
dollar hits 9-month low against local currency
The US dollar has fallen to its lowest level in Egypt in nine months, reaching LE 48.75 for buying and LE48.85 for selling per dollar. Bankers attribute this continued decline of the dollar against the Egyptian pound to an increased supply of foreign currency during the summer season, outstripping demand, especially following the unification of the exchange rate market. Typically, during the summer months of July, August, and September, foreign currency inflows rebound significantly. This is largely due to the start of the Gulf tourism season and the return of Egyptian expatriates for their family vacations, which boosts foreign currency receipts. Remittances from Egyptian expatriates represent the second-largest official source of foreign currency after export revenues. The increased circulation of foreign currency in banks and exchange offices further strengthens the pound against the dollar. According to Central Bank data, remittances from Egyptians working abroad jumped by 69.6 percent during the first 11 months of the 2024-2025 fiscal year, reaching $32.8 billion. Furthermore, the Central Bank's maintenance of a stable exchange rate for the pound has strongly encouraged foreign investors to return to the local currency. They are selling dollars and buying pounds to capitalize on the high returns. The banks' ability to provide dollars to foreign investors when they wish to transfer a portion of their treasury bill investments out of Egypt has also significantly boosted confidence and encouraged their renewed participation. Economist and energy markets expert, Wafaa Ali, stated to RT that there is little doubt the current scenario indicates the Egyptian pound is moving beyond conflicting interests and experiencing a recovery not seen in eight months. The Egyptian pound has broken free from the pressures exerted by geopolitical tensions and their impact on the economic agenda. It has maintained exchange rate flexibility, and foreign exchange systems have been freed from 'mutations' to avoid the accumulation of external imbalances, bringing the Egyptian pound back into the spotlight. Ali elaborated that the increase in foreign currency reserves, which signifies the economic state and provides definitive proof of recovery, is driven by several factors. These include increased investment flows, remittances from Egyptians abroad, robust tourism revenues, and a revival in real estate purchases by Gulf citizens. Additionally, the downward trend in inflation over the past month has positively impacted the exchange rate, causing it to drop by 15-18 piasters within 24 hours, pushing it below the LE50 mark per dollar. She added: 'Based on the foregoing, the Central Bank's flexible policy, cash flows, and the growth of the banking sector's foreign assets—which have turned from negative to a net positive of approximately $14 billion—have improved tourism revenues and non-oil exports. It is worth noting that the current level of the currency allows Egypt to capitalize on investment opportunities in the upcoming phase, which moves the Egyptian pound away from the target of futures contracts and allows it to continue its gradual improvement.' Economist Mohamed Anis, speaking to RT, attributes the Egyptian pound's appreciation against the dollar to several factors. First, he noted the calm in geo-strategic risks, citing the frozen Gaza conflict that hasn't escalated into a regional war, and the contained Iranian-Israeli conflict, preventing an impact on the prices of Egypt's major foreign imports like petroleum derivatives and wheat. Secondly, Anis highlighted the surge in dollar inflows into the Egyptian market. He explained that the Egyptian pound's interest rate remains high at 25 percent, compared to an inflation rate of around 15 percent. This creates a significant real interest rate of approximately nine percent, attracting indirect investments into Egyptian government bonds. Third, he referred to the increase in natural dollar inflows, such as remittances from Egyptians abroad, tourism revenues, and exports. These combined factors have led to a relative and temporary rise in the pound's value against the dollar. Anis concluded by stating that the fair exchange rate for the pound against the dollar should be between LE49 and LE52 by the end of 2025.
