EGP 7.3bn allocated to developing Egypt’s military production

Mohamed Farag
4 Min Read

Egypt’s Ministry of State for Military Production has developed an integrated plan to develop the country’s system of military manufacture, at a value of EGP 7.3bn.

The plan includes meeting the needs of the Armed Forces from 2020 to 2030, and to direct the surplus for export in the period from 2025 to 2030.

Daily News Egypt has learned about the details of the plan, which includes: deepening local manufacturing; increasing the role of technical research; creating cooperation with international companies; and completing the development and rehabilitation of production lines.

The Ministry of State for Military Production prepared a plan to develop the production of ammunition in coordination with the Ministry of Defence at a cost of EGP 2.8bn.

The plan includes the development of production lines for ammunition of all kinds, components and explosives in eight companies. It is planned to increase the capacity of small arms ammunition to about 73 million units compared to the current 50 million.

There will be an additional increase in the production of certain parts of medium weapons ammunition, as well as in the local manufacturing and production of balloons for medium ammunition. Further increases will be seen in the production capacity of heavy munitions to 80,000.

The cost of the fiscal year (FY) 2019/20 plan to produce ammunition stood at about EGP 300m, and about EGP 980m for FY 2020/21. At the same time, about EGP 1.537bn will be invested in producing ammunition over FY 2021/22.

The Ministry of Military Production has also drawn up a plan to develop the production of weapons and equipment, in coordination with the Armed Forces’ Armament Authority and the Weapons and Ammunition Department, at a value of EGP 4.5bn.

The cost of the plan to develop weapons, equipment and armor production is divided into three stages. The first costs about EGP 1.355bn, while the second costs EGP 1.340bn, and the third stage costs EGP 1.855bn.

The ministry’s future vision includes the launch of an integrated medium-range air defence system, the production of an Egyptian tank, and the design and manufacture of a protection system for armoured fighting vehicles.

During the past six years, specifically between July 2014 to June 2020, several axes have been addressed to implement the main objectives of the government’s work programme. The first of these has been the development of a plan to improve performance and build capabilities.

The second has been to push work in the field of war products, and the third is to utilise surplus productive capacities. The fourth axis is represented in establishing new production lines and industrial companies.

The Ministry has also developed a targeted training plan in cooperation with specialised training bodies 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); the National Planning Institute (NPI). This has been with a view to raise the efficiency of workers, especially young people.

The Ministry was keen on choosing a vision that affirms that it is an advanced industrial institution that acts as a main source for arming the armed forces. It seeks to provide added value to the Egyptian economy and participate in national and development projects within the framework of the state’s strategy for sustainable development.

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