Egypt Builds New Capital with Help from Chinese Company

Post by : Bianca Suleiman

Egypt is building a brand-new capital city, and a Chinese company is helping make it happen. The China State Construction Engineering Corporation (CSCEC), a company owned by China’s government, has signed a deal to run and take care of the main business area in Egypt’s new capital. This area is called the Central Business District (CBD), and CSCEC is also the main company building it.

This new city is known as the New Administrative Capital (NAC), and it is being built about 45 kilometers east of Cairo, Egypt’s current capital. One of the main reasons for building this new city is to reduce the heavy traffic and pollution in Cairo. The project is a big part of Egypt’s Vision 2030 plan, and it’s designed to be the new center for government offices and daily political work. Over six million people are expected to live there.

The New Administrative Capital will cover around 700 square kilometers. The Central Business District alone will cost $3.8 billion and will include 10 office towers, 5 tall apartment buildings, and 4 big hotels. The tallest building there is the Iconic Tower, which stands at 385.8 meters high — it’s now the tallest building in all of Africa. The city will also have modern roads, green spaces, and smart technology to help things run smoothly.

CSCEC is not just building the CBD. It will also help manage it. The company created a new team called Horizon Operations Management (Egypt) Co Ltd. This team will handle jobs like keeping buildings clean, taking care of parks, checking the environment, and managing water and electricity. This kind of “build, run, and maintain” method is something Chinese companies are doing more often in Africa.

By May 2023, 14 ministries and government offices had already moved to this new city. Then, on April 2, 2024, just after starting his third term as president, Abdel Fattah al-Sisi made the NAC the official place for government work.

China is also helping with the money side of things. Chinese banks are paying for about 85% of the CBD, including a $2.2 billion loan led by China Exim Bank. Egypt’s Arab Contractors Company and CSCEC have teamed up to work on other projects across Africa too.

It’s important to know the difference between a capital city and an administrative capital. A capital city is the main city of a country and usually includes government, culture, and business. An administrative capital is where most government work actually happens, like offices for ministries and government workers.

Some countries have done this before. For example, South Africa has three capitals: Pretoria (administrative), Cape Town (legislative), and Bloemfontein (judicial). Malaysia also moved its administrative offices to Putrajaya, even though Kuala Lumpur is still the national capital.

Egypt is doing something similar. Cairo will stay the capital in name, but most government offices and ministries will now work from the New Administrative Capital. This city is being built as a smart city, which means technology will be used in many public services to help things run better. This project also shows Egypt’s strong friendship with China, and it fits into China’s Belt and Road Initiative, which helps connect countries through big building projects.