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Nestlé’s Bold Move in Egypt: Expanding Production Amid Economic Challenges

Key Takeaways

• Nestlé’s strategic expansion in Egypt

• Investment in local production boosts economic development

• Aligning with long-term sustainability and demand growth

Investment in Local Production

In a move that signals both confidence and commitment to the Egyptian market, Swiss multinational food and beverage conglomerate, Nestlé, has announced plans to significantly bolster its production capacity in Egypt. By the end of 2023, the company aims to add four new production lines to its existing facilities, a strategic decision that highlights Nestlé’s focus on enhancing its local sourcing of raw materials and meeting the growing demand for its products in the region.

The addition of these production lines is not just an expansion of Nestlé’s manufacturing capabilities but also a testament to its resilience and adaptability in the face of Egypt’s economic challenges. Tarek Kamel, Chairman and CEO of Nestlé Egypt and Sudan, emphasized the importance of this investment, stating that three of the new lines would be dedicated to food products, while the fourth will focus on dairy production. This expansion is a clear indication of Nestlé’s intent to diversify its product offerings and strengthen its presence in the Egyptian market.

Supporting Economic Development

Nestlé’s investment in Egypt goes beyond increasing production capacity. It aligns with the company’s long-term goals of contributing to Egypt’s economic development and supports the government’s efforts to boost local manufacturing. The strategic expansion is expected to have a significant positive impact on the local economy, not only by creating jobs but also by enhancing the efficiency of the supply chain and reducing logistics costs. Moreover, by increasing the local sourcing of raw materials, Nestlé is fostering closer ties with Egyptian suppliers and farmers, thereby contributing to the overall sustainability of the food and beverage sector in the region.

This ambitious plan underscores Nestlé’s commitment to Egypt, demonstrating a concerted effort to meet the escalating demand for food and beverage products while advancing sustainability initiatives. The focus on local production and sourcing is part of Nestlé’s broader strategy to support economic development in its markets of operation, reflecting its corporate philosophy of creating shared value. Through these investments, Nestlé aims not only to achieve business growth but also to contribute to the social and economic progress of the countries where it operates.


Nestlé’s announcement to add four new production lines in Egypt by the end of 2023 is a bold step that reflects the company’s confidence in the Egyptian market and its commitment to the region’s economic development. This investment is expected to bolster Nestlé’s production capabilities, meet the growing demand for its products, and support local sourcing initiatives. By aligning its business goals with the broader objectives of economic development and sustainability, Nestlé is setting a precedent for multinational corporations operating in challenging markets. As Egypt continues to navigate its economic challenges, investments like these are a beacon of confidence in the country’s potential and resilience.

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