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Egypt considers new incentives to boost local automotive industry

Egypt targets deepening autos local manufacturing by providing incentives to enhance domestic production and attract global companies.
09.07.24 | Source: Ahram Online

Minister El-Wazir made his statements during a meeting held on Monday with members of the Supreme Council for Vehicle Manufacturing, established in 2022 to boost the auto industry in the local market, and representatives of the sector. 

During the meeting, the minister discussed the automotive industry's strategy and its objectives for localizing auto manufacturing and deepening local production.

“The strategy aims to fulfil the local market's needs and boost exports by achieving economies of scale to be competitive in the automotive industry,” according to El-Wazir.

The return on foreign investment for establishing an industrial complex in Egypt is 17 percent, a significant incentive for foreign investors according to the feasibility study conducted by the European Bank for Reconstruction and Development (EBRD) as shown by the minister during the meeting.

El-Wazir reviewed the project of establishing an industrial complex for cars in East Port Said with a global company specialized in this industry.

The complex will include three factories (a body factory, a paint factory, and an assembly factory) to manufacture several types and models of cars, with the majority of investments being foreign.

Furthermore, the minister stressed that Egypt possesses all the capabilities and resources that qualify it to establish a genuine car manufacturing industry instead of merely assembly.

He pointed out that the automotive industry strategy includes a set of incentives and benefits aimed at deepening this strategic industry, providing the necessary elements for its advancement, and building a major industrial base.

This will significantly attract more local and foreign investments in this sector and other industries that feed into car manufacturing.

El-Wazir noted that the ministry is keen to provide all forms of support to global car companies to produce and expand in the Egyptian market, which will inject real investments, localize the industry, and increase job opportunities for youth.