Egypt mulls new company to provide funds for leather zone

Industry ministry is currently studying forming a joint-stock company to provide necessary funds to finish Al-Robeky industrial zone for leather tanneries, minister Monir Fakhry Abdel Nour asserted Thursday.

Speaking to Amwal Al Ghad, Abdel Nour stated that the company is set to include Cairo governorate, National Investment Bank (NIB) and the Industrial Development Authority (IDA) as a representative for the ministry.

The project targets moving leather tanning and dyeing workshops from Sour Magra El Oyoun St., Misr El Kadima to El Robeky area.

Industry and trade ministry has dedicated 200 million Egyptian pounds in the budget of fiscal year 2015-16 to complete project’s first phase and start some construction works of the second phase, the minister said.

In addition, the ministry is searching for foreign financing organizations -notably from Italy- to provide necessary funds to finish the project, Abdel Nour stated.

According to IDA’s data, the necessary funds to start project’s second phase are estimated at 1.1 billion Egyptian pounds.

Al-Robeky leather zone project is set to achieve 10% growth in leather sector and attract investments worth 5.7 billion Egyptian pounds at the moment it starts operation.