‘Productive Villages’ Pilot to Bring Small Factories to Rural Egypt

A new ‘Productive Villages’ initiative is being piloted by the Ministry of Industry to establish small and medium-sized factories inside rural communities across Egypt.

The pilot phase will launch in two governorates in the Delta and Upper Egypt, with the initiative focused on using local resources to support manufacturing, create jobs, and reduce migration from villages to urban areas.

The programme was discussed during a meeting between Minister of Industry Khaled Hashem and Eric Oeschlan, who oversees the organisation’s labour market, employment, and workforce development programmes in Egypt, alongside a delegation from the International Labour Organization.

Discussions also covered cooperation on labour market development and the finalisation of the National Employment Strategy and its implementation plan, including industrial skills development and workforce alignment. According to Khaled Hashem, the initiative forms part of wider industrial strategy plans focused on workforc

e development, vocational training, and employment opportunities for women and young people. Several ministries are participating in the programme, including the ministries of local development, environment, agriculture, planning, and social solidarity, with the aim of creating integrated rural industrial zones tied to local economic activity.

Eric Oeschlan reaffirmed the International Labour Organization’s commitment to providing technical support, strengthening cooperation with the Ministry of Industry and the private sector, and supporting job creation and the competitiveness of Egyptian products.