Egypt inaugurates first Bosch home appliance factory in Africa with €55m investment

Daily News Egypt

3 days ago

Egypt's Prime Minister Mostafa Madbouly inaugurated the first African factory of BSH, the German-owned home appliance giant behind the Bosch brand, marking a milestone in Egypt's industrial development and regional positioning. Located in 10th of Ramadan City, the factory represents the company's first manufacturing base on the continent, with a total investment exceeding €55m.
The facility is expected to generate around 1,000 direct and indirect job opportunities, with 50% of its production designated for export to markets across Africa and the Middle East.
Accompanied by key ministers and senior officials, Madbouly affirmed that Egypt's economic reforms and investor-friendly incentives have successfully attracted major global industrial players. The Bosch plant, he said, will serve as a strategic launchpad for regional expansion, leveraging Egypt's geographic advantage, skilled labour, and growing domestic market.
Top executives from BSH Global attended the inauguration and praised Egypt's strategic positioning and the strong support extended by local authorities. Built over an 80,000-square-metre plot, the factory will manufacture more than 350,000 gas ovens annually using 100% Egyptian labour and German engineering expertise.
The facility adopts a new BSH production model focused on integrating the local workforce rather than relying heavily on automation—an approach designed to capitalise on Egypt's labour cost advantage while upholding Bosch's global quality standards.
This project aligns with Egypt's broader industrial strategy and vision to become a regional hub for manufacturing and export. BSH also confirmed its intention to expand the facility in future phases, further increasing production capacity and employment opportunities.
Prime Minister Madbouly toured the production lines and met with workers, reiterating the government's commitment to supporting industrial investment, strengthening local supply chains, increasing exports, and facilitating technology transfer.
In his remarks, Luis Alvarez, Chairperson of BSH Egypt and Morocco, explained that the decision to establish BSH's first African factory in Egypt reflects a long-term strategic vision. He highlighted Egypt's potential as a gateway to continental and regional markets and noted that the country is now home to BSH's 40th production facility worldwide.
BSH operates 39 factories across Europe, North America, and Asia and maintains a presence in more than 60 countries. The new Egyptian plant is now a critical link in this global network and will serve as a springboard into emerging markets across the Global South.
Designed with strict sustainability standards, the factory combines advanced infrastructure with local talent. BSH plans to export 50% of its output to the Middle East, Africa, Australia, Canada, and Latin America.
Ahmed Riad, Executive Board Member and CFO of BSH Home Appliances Egypt, noted that the factory's 90 cm cookers were developed specifically to match Egyptian consumer preferences. The current local component ratio stands at 50%, with plans to exceed 70% within two years. He also revealed that BSH is exploring the possibility of expanding its product line beyond ovens and cookers, further strengthening Egypt's position as a regional manufacturing hub.
Following the Bosch factory inauguration, Prime Minister Madbouly also opened Jumia's largest logistics warehouse in Egypt—a major development for the country's e-commerce and digital logistics infrastructure.
Spanning over 27,000 square metres and equipped with state-of-the-art technologies, the new facility is designed to accelerate delivery times, enhance storage efficiency, and support Jumia's growing operations, particularly in Upper Egypt. It is expected to create approximately 10,000 direct and indirect jobs.
The warehouse supports Egypt's goal to become a regional digital hub, aligning with Vision 2030 and national efforts to expand digital services, boost youth employment, and support tech-driven development. Minister of Communications and Information Technology Amr Talaat highlighted that the software powering Jumia's platform was developed locally by Egyptian engineers.
Jumia Egypt CEO Abdellatif Olama emphasised the strategic importance of Egypt within Jumia's regional operations. The country hosts one of the company's largest tech hubs in Africa and plays a pivotal role in exporting digital solutions across the continent. He reiterated Jumia's commitment to enhancing Egypt's role in Africa's digital transformation and to supporting local manufacturing and logistics ecosystems.