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Mobile phone industry in Egypt

Mobile phone manufacturing in Egypt has been growing in recent years, with major brands setting up factories in the country.
© Gian Cescon on Unsplash

Mobile phone manufacturing in Egypt has been growing in recent years, with major brands such as Vivo, Nokia, and Samsung setting up factories in the country. These factories have a total production capacity of 20 million devices and have created job opportunities in the country. The arrival of these major mobile phone manufacturers has boosted Egypt's electronics sector and made the country an attractive destination for similar companies looking to establish manufacturing hubs in the region.

Egyptians love their mobile devices
A Kaspersky survey in Egypt finds that 43% of consumers name their devices, reflecting emotional attachment. About 67% talk to devices in some way. Furthermore, 88% express sympathy when their devices are damaged. 

99 percent have a mobile phone
According to the Ministry of Communications and Information Technology, about 98.8% of Egyptian families own a mobile phone, and about 99.4% of individuals use mobile phones. In January 2023, there were 105 million mobile connections in Egypt. The penetration rate of smartphones in Egypt reached around 97 percent of mobile phones. 

34 million use mobile wallets
The Central Bank of Egypt (CBE) has reported a nearly 20% increase in the total number of mobile phone wallets, reaching 34 million by the end of June. Monthly transactions through mobile phone wallets exceeded 100 billion Egyptian pounds, showing a significant increase of about 152%. The number of monthly operations of mobile phone wallets also saw substantial growth, reaching nearly 85 million, a 130% increase. These mobile wallets facilitate various financial activities, including transfers, bill payments, mobile top-ups, and more.

Egyptian government supports expansion of mobile network
The Egyptian Cabinet, approved the establishment of mobile phone network reinforcement towers in 20 governorates. This initiative will also benefit several villages, including those under the "Decent Life" initiative.

Parliament encourages local mobile phone production
The Egyptian Parliament approved a decree to reduce customs taxes on mobile phone components to 2%, down from 5-30%. The move aims to encourage local mobile phone production and has garnered interest from three global companies. This change is in line with discussions between the Egyptian cabinet and manufacturing companies. This move aims to promote domestic mobile phone industry growth, attract international investment, offer diverse products in the local market, and facilitate export opportunities.

Egypt aims to become a regional hub for electronics manufacturing
Egypt has attracted major mobile manufacturers, including Vivo, Nokia, and Samsung, investing EGP 2 billion for a 20 million device production capacity. Part of Egypt's strategy to become a regional electronics hub, it offers incentives like tax breaks. Agreements with OPPO and Samsung for mobile factories were made. The ministry supports local electronics SMEs through training and funding. The establishment of these factories aims to deepen local manufacturing, serve as a regional hub for manufacturing and exports to the Arab and African markets, and enhance the availability and affordability of mobile devices for Egyptian consumers.

Egypt committed to boosting local production 
Key highlights include Samsung Electronics Egypt securing a golden license, paving the way for a significant mobile phone factory in Beni Suef. In tandem, Egyptian company KMG EGYPT aligns with Indian enterprises to initiate local production in Sadat City, indicative of a larger trend of homegrown firms venturing into the realm of mobile device manufacturing. Meanwhile, brands like Infinix and Vivo underline their dedication to Egypt's market with expansion and initiation of local production lines respectively. The local workforce is being equipped with the right skills, education, and technology needed to drive the sector's growth. In terms of market share, Samsung is the leading mobile vendor in Egypt with 26.2%, followed by Oppo with 18.06%, Xiaomi with 13.73%, Apple with 12.86%, and Huawei with 9.58%.

Egypt grants golden license to Samsung for mobile phone factory
Egypt has granted Samsung Electronics Egypt a golden license to build and operate a mobile phone factory in Beni Suef, covering an area of 6,000 square meters. This project is expected to generate 768 direct and indirect jobs, with the first phase operational by the second half of 2024 and full completion by the end of 2025. The golden license simplifies land acquisition and enterprise operation for investors. The factory aims to meet local customer demands and follows successful cooperation with Samsung in manufacturing educational tablets in Egypt. Egypt aims to boost private sector participation in the economy from 30% to 65% as part of its investment-friendly policies.

Egyptian company to manufacture Indian mobile phones locally
Egyptian company KMG EGYPT is set to manufacture smartwatches, mobile phones, and accessories in its Sadat City factory. Agreements with Indian companies will lead to local production starting next month. The factory aims to attract investments by offering production lines for mobile devices to third parties. This move follows similar initiatives by companies like Etisal for Advanced Industries (EAI) and OPPO to manufacture mobile phones in Egypt, indicating growth in the local mobile device manufacturing sector.

Infinix launches new smartphones production line in Obour
Infinix Egypt expands its smartphone production with a new line in Obour city, introducing the Infinix smart 7 to the market. The company emphasizes its commitment to manufacturing in Egypt, providing job opportunities for local youth and maintaining high quality through rigorous testing. Infinix aims to contribute to Egypt's localization efforts and seeks government support to further boost production and exports.

China’s Vivo officially starts smartphone manufacturing in Egypt
Chinese smartphone giant Vivo has commenced local manufacturing in Egypt at its 10th of Ramadan City factory. This move aims to meet both domestic and export demands, marking Vivo as the fourth smartphone brand to produce devices in Egypt, following HMD Global Oy, Samsung, and Infinix.

OPPO announces new investments
OPPO established a factory in Egypt with a $20 million investment, producing 4.5 million units annually. OPPO denied rumors of exiting the Egyptian market, asserting its commitment to Egypt as a promising market. The company plans to continue its ambitious strategy and explore further business opportunities with local partners, emphasizing its dedication to meeting Egyptian customers' requirements and providing high-quality products and services.

HMD manufactures Nokia mobile phones in Egypt
Nokia Corporation is a Finnish multinational communications corporation that has a mobile phone factory located in El Merryland, Heliopolis, Cairo, Egypt. In 2022, HMD, a company that manufactures Nokia mobile phones, announced that they will use EAI's factory in Sixth of October City to produce both smartphones and other mobile phones.

EGYPT establishes a holistic ecosystem
Egypt's transformative journey in the mobile device manufacturing sector underscores its strategic positioning as an emerging hub for technological production in the global arena. Through the amalgamation of domestic initiatives and international collaborations, the nation is not only amplifying its economic prospects but also catalyzing job creation and technological proficiency. The integration of major global players like Samsung, Vivo, Infinix, and OPPO alongside local firms such as KMG EGYPT establishes a holistic ecosystem, stimulating both domestic consumption and export capabilities. As these ventures unfold, Egypt's dedication to bridging the technological divide, fostering private sector participation, and fortifying its international partnerships becomes evident. With the trajectory set, Egypt is poised to become a formidable player in the mobile manufacturing sector, setting a precedent for other emerging economies to emulate.