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Cluster Development
UNIDO experience in Egypt
20 December 2017
Giovanna Ceglie
UNIDO Representative
and Director of the Regional Office in Egypt
g.ceglie@unido.org

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Performing Cluster
Source: UNIDO (2013)

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Clusters and Value Chains
• Main approach
• Multiple objectives: prosperity, environment, inclusion
• Multiple levels: companies (different sizes), institutions, policies
Main sectors covered:
- Agri-business
- Waste management
- Creative industries
- Furniture
- Renewable energies

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Pesticide application
technology
Pesticide Applicator
Value addition
Business linkages
Marketing
Palm Date Cluster Development
• 200,000 palm trees in Edwa / 2000 producers
• 50% infestation with red palm weevil
• Locally consumed and rarely sold
• EGY 1st producer but only 3% of World Market Share

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Increase in value
(2 EGP/kg to 10
EGP/kg)
2 trading
companies
3 million EGP
turnover per
year
10,000 palm
trees treated
of palm weevil
60 employment
opportunities
(mainly women)

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Silage and Feed
Production
Raising and Breeding
Skills
Value Addition and
Processing
Ultrasound and
Artificial Insemination
Compost and Biogas
Production
Animal Production Cluster
• 5000 producers in Edwa
• Low productivity
• Inefficient breeds
• Lack of services

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Increase in milk
productivity
83.1%
Increase in meat
productivity:
132.7%
14% decrease in
production cost
35 veterinarians
and veterinary
paramedics
capacitated in
addition
20 Biogas units
provide 50 families
with gas every
month

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Promoting local value addition in the Agribusiness sector:
Sun-dried tomatoes in Luxor
Awareness raising on
possible value addition for
tomato growers
Capacity building for 12
farmers’ cooperatives
Business linkages with 12
buyers
Women empowerment
(80% of new created jobs)
Egypt is the 5th tomato producer in the
world
Less than 3% is processed

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Promoting local value addition in the Agribusiness sector:
Sun-dried tomatoes in Luxor
30% income
increase
9 dryers
established with
local cooperatives
100 % value
increased
181 new jobs
created (80%
women)
New long tomato
varieties
introduced

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Promoting local value addition in the Agribusiness sector:
Artichokes in Nubareya
Training on better cultivation
practices (gibrillic acid)
Capacity building
Business linkages & contract
farming
Common facility
Quality of production and preparation
declining
Opportunities to anticipate production and
pre-process locally, avoiding traders

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Promoting local value addition in the Agribusiness sector:
Artichokes in Noubareya / Bangar el Sokkar
50% increase in
productivity
2 preparation units
established with
local cooperatives
140 new job
opportunities (40%
women)
5 supply contracts
signed over 2 years
27% increase in
income

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Reviving the Alabaster Cluster in Luxor:
Improve market access of alabaster products:
• Enhanced marketability through product design and
development in line with national and international trends
• Fostered linkages among designers, artisans, and traders
Train students and graduates as cluster agents on:
• Design
• Prototyping with Luxor artisans
• Marketing
Quarries Designers
Exibits
Traders
End
users

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Sugar Processing
(sugar cane factories)
Refinery factories
(in Cairo)
Regional
cement
factories
Bagasse
Alt-Fuel
Manufacturers
Advanced irrigation system components
Agriculture machinery
Solar powered pest control & light pest control
Biocontrol agent from plant extract
Traps for pheromones pest control
Straw
Waste
Traders
Food
Ind. Regional paper and
wood factoriesStarch
Ind.
Cellulose
manufacturers
Glucose
manufacturers
Craft paper
makers
Sugar Cane Farmers
LEGEND
Existing Activities
Business
Opportunities
Sugar Cane Production & Sugar Industries
“Potential Cluster in Luxor”
Pharma
Ind.
Animal
breeders Sugarcane
juice shops
Black honey

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A few tips
•Learn by doing and do by extensive consulting
•Local stakeholders lead the process but external
expertise is key for innovation and value addition
•Local, consistent presence is a must: cluster agents
•Market is the goal but choices are needed: need for
a priorization framework
•Cluster policies are integral part of other private
sector policies

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Thank you!

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Under-performing Cluster
Source: UNIDO (2013)