Egypt plows nearly us$20 million into automotive localisation for 2024/25

For its 2024/25 fiscal year, Egypt has earmarked roughly US$19.7 million (EGP 1 billion) in its budget. This substantial allocation supports a daring plan to fundamentally reshape the automotive sector through localisation initiatives. Finance Minister Ahmed Kouchouk announced the strategy, which underscores Egypt's wider drive for industrial self-reliance and economic fortitude in 2025.

Targeting a 45% local component threshold 

A core element of this strategy is the aim to increase the proportion of locally sourced components in vehicle manufacturing to over 45% within the current year. This represents a significant acceleration of efforts to strengthen domestic value chains in an industry historically reliant on imports. Notably, as of 2024, Egypt's automotive sector, with almost fifteen local manufacturers, had already achieved domestic content levels nearing this 45% threshold. Seven companies registered and customs eased for speedy entry.

Minister Kouchouk announced that seven companies have officially registered for the government's Automotive Industry Localisation Strategy. The initiative has already seen its first customs clearances, with the Customs Authority releasing initial input batches in August 2024.

To reduce administrative friction, tax and customs procedures for registered firms have been automated. In parallel, a specialised unit has been established within the Ministry of Finance by finance officials. This unit aims to facilitate these operations, quickly troubleshoot issues, and streamline engagement.