Egypt launches ‘Productive Villages’ pilot to build small factories in rural communities

“Egypt is exploring the establishment of small and medium-sized factories within villages as part of the new “Productive Villages” initiative, designed to harness local resources and create jobs. The pilot phase will be rolled out in two governorates in the Delta and Upper Egypt. The initiative was discussed during a meeting between Minister of Industry Khaled Hashem and Eric Oeschlan, Director of the International Labour Organization (ILO) office in Cairo, along with an ILO delegation. According to the discussions, the project aims to set up rural-based factories to maximize resource use, reduce rural-to-urban migration, and generate employment opportunities within local communities. The meeting also reviewed ongoing cooperation between the ILO and Egyptian authorities on labor market development, including finalizing the National Employment Strategy and its implementation plan. The Ministry of Industry is contributing to areas such as industrial skills development and workforce alignment. Minister Hashem emphasized that human capital development is a cornerstone of Egypt’s industrial strategy. He highlighted priorities such as improving worker conditions, supporting women and youth employment, and tailoring vocational training to labor market needs. He also noted that several ministries—including local development, environment, agriculture, planning, and social solidarity—are collaborating on the “Productive Villages” initiative to create integrated rural industrial zones. These zones are expected to reduce migration pressures on urban centers and foster sustainable local economic growth. For his part, Eric Oeschlan reaffirmed the ILO’s commitment to providing technical support, strengthening cooperation with the Ministry of Industry and the private sector, and enhancing decent job creation. He also stressed the importance of boosting the competitiveness of Egyptian products in global markets. The post Egypt launches ‘Productive Villages’ pilot to build small factories in rural communities first appeared on Dailynewsegypt .

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