The Egyptian Cabinet has approved a proposal to conclude a partnership agreement between the Public Treasury, the Egyptian Mint Authority, and the UK’s Royal Mint to establish a British- Egyptian mint in the Suez Canal economic zone (SCZone).
The Cabinet has also agreed to a proposal to mint and issue a 2 pound (LE) coin, a denomination which doesn’t currently exist.
The existing Egyptian Mint was opened in 1953 with the support of the Royal Mint to produce Egypt’s coins. It has also produced coins for Syria, Saudi Arabia and Yemen, along with medals and insignia. It was merged with the Public Treasury Authority in one entity under the Finance Ministry in 2019.
Egypt’s Finance Minister first announced a deepening cooperation with the Royal Mint in coin technology production back in February. According to the Minister, Egypt is seeking to maximise the capabilities of the Egyptian Mint, as one of only two such facilities in Africa and the Middle East, to cover the needs of domestic and regional markets.
The Royal Mint is reported to have presented several options for technical cooperation to develop production lines and increase production capacity. The new facility is likely to be built in the Suez Canal Economic Zone, a unique strategic location which aims to be the main logistics hub in the region, supported by a number of mega infrastructure projects and financial incentives.
Details of the proposed agreement revealed an investment of LE 2 billion ($100 million), with a capacity of half a billion coins per year, half of which would be exported. According to the Finance Minister, all stages of manufacturing will take place in Egypt using local production inputs instead of importing raw materials, implying that the agreement will covers blanks as well as minting.
Meanwhile, the issue of a new LE 2 coin is necessary, said the Ministry of Finance, for transactional purposes. Currently, coins in the Egyptian series include 5, 10, 25 and 50 piastres, along with an LE 1, albeit that only the three higher denominations are still being produced.
The production of the new LE 2 will take place at the same time as the signing of the final cooperation agreement with the Royal Mint. The partnership forms part of a broader national strategy to support local industries and stimulate economic activity.
