China’s Xingfa eyes $2bn phosphate investment in Egypt

China-based Xingfa Chemicals Group is planning to invest up to $2 billion in Egypt’s phosphate ore industry, according to a statement issued by the Ministry of Petroleum and Mineral Resources.

The company has expressed interest in establishing a large-scale project covering the exploration, extraction and production of phosphate ore in the Golden Triangle Economic Zone. The investment would be implemented over three phases, subject to the finalisation of a memorandum of understanding between the two sides.

Discussions took place during a meeting between ministry officials and representatives of Xingfa, formally known as Hubei Xingfa Chemicals Group Co. The group is a Shanghai-listed manufacturer specialising in phosphorus-based chemicals and produces 591 products across 15 categories. Its operations also extend into silicate, sulphuric acid, fluorine and alkali industries.

China’s investment surges in Egypt

In addition to the phosphate project, Xingfa has indicated an interest in exploring further opportunities across Egypt’s wider mining and mineral sectors. The company plans to continue coordinating with the ministry to exchange technical expertise and begin feasibility studies related to the proposed development.

The project forms part of Egypt’s broader strategy to modernise its mining sector, expand value-added industries based on mineral resources and attract technologically advanced international companies to strengthen the country’s industrial base. Mining is one of five priority sectors under Egypt’s new economic development narrative, which aims to raise real GDP growth to 7.5 per cent by 2030 and create 1.5 million new jobs.

The strategy also targets increasing the mining sector’s contribution to GDP to between 5-6 per cent, while setting ambitious goals for foreign direct investment and exports. Under the second National Narrative for Comprehensive Development, Egypt aims to attract $24.6 billion in annual FDI and lift total exports to $145 billion by the end of the decade.

Egypt has been recording rising levels of Chinese investment in recent years, leveraging China’s industrial experience and development model. Chinese direct investment in Egypt grew from $6.8 billion in 2020 to more than $9 billion by the end of 2024, while bilateral trade exceeded $17 billion in 2024.

Over the same period, revenues from mineral resource development increased by 131 per cent year on year to $446 million as of July 2025.

The government has also been advancing reforms and incentives aimed at improving the investment environment in the mining sector, including measures targeting start-ups and small and medium-sized enterprises. Among the initiatives under development is a digital portal for mining investment opportunities, scheduled to launch in the first half of 2026.

If realised, the proposed Xingfa investment would rank among the largest foreign commitments to Egypt’s phosphate industry and reinforce efforts to build a more diversified, export-oriented and technology-driven mining sector.