Russia Expects to Expand Access to African Market Through Launch of Russian Industrial Zone in Egypt: Russia's Deputy PM
Russia Expects to Expand Access to African Market Through Launch of Russian Industrial Zone in Egypt: Russia's Deputy PM
The Russian Industrial Zone (RIZ) in Egypt will help Russian companies expand trade links, particularly in African markets, through Egypt's international agreements, Aleksey Overchuk said at the signing ceremony of a cooperation agreement between the Russian Ministry of Industry and Trade and the Crystal Growth Fund on the development of the RIZ in Egypt.
The 49-year lease agreement will allow the Crystals of Growth fund to develop the site and attract investors, Russian Deputy Minister Roman Chekushov noted.
Priority Sectors: The project’s priority sectors, identified with Egyptian partners, include:
▪ pharmaceuticals and chemicals;
▪ polymer processing and petrochemicals;
▪ construction materials and metal processing;
▪ food production, including areas linked to Egypt’s role as a hub for Russian grain supplies.
Incentives for Investors: RIZ residents will benefit from exemptions on:
▪ Import duties for equipment and materials;
▪ Property tax;
▪ Value-added tax on raw materials and components.
Additionally, they will receive a 50% income tax refund on investments for seven years.
Market Access Advantages: Products manufactured in the RIZ with at least 30% local content will receive "Made in Egypt" status. This allows:
Duty-free access to African markets
Duty-free access to countries with trade agreements with Egypt
Up to 100% of goods produced in the zone can also be sold on the Egyptian market
The Russia-Egypt intergovernmental agreement to establish the RIZ in the Suez Canal Economic Zone was signed in 2018, while a long-term land use deal with the Russian developer was concluded in May 2025, including a three-year rent-free period.
The Crystal Growth Fund is a Russian development institution established in December 2023. It designs and implements strategic projects to grow the Russian economy, achieve technological sovereignty, and build new infrastructure, working on key assignments from the Russian government and Security Council both domestically and internationally.
Subscribe to @sputnik_africa
