Prime Minister Mostafa Madbouly during his speech following the launch of the National strategy for developing automotive industry in Egypt. Photo : Egyptian Cabinet
Initially set to be launched by the end of 2021, the strategy aims to establish Egypt as a main gateway for emerging vehicle markets in Africa and to build strong commercial and investment relations with main regional trade partners to ensure sustainable development growth for all sides.
Madbouly also announced that the strategy includes many steps that have been already taken to support Egypt as an emerging vehicle market in Africa like the new customs tariff, which facilitates the custom releases of car components.
A new law was also drafted to include all incentives to encourage localising the automotive industry, in addition to the creation of a supreme council for the automotive industry and an executive unit responsible for that important strategy.
The strategy also includes the Egyptian Automotive Industry Development Program (AIDP), which provides the required framework to develop existing car assembling and manufacturing capacities and encourage new investments in this sector.
According to officials, vehicles assembled under this program will include passenger cars as well as SUVs, vans, and microbuses.
The program also provides incentives for localising manufacturing electric vehicles, including local manufacturers and consumers.
In his speech at a meeting with the world’s largest car manufacturers following the launch of the strategy, Madbouly referred to his meetings with local and global automakers in which he affirmed the importance of localising the automotive industry, noting that the number of imported cars in 2021 reached $4 billion.
The state coordinated with foreign partners and federations of industries to launch the national strategy, he said.
The Prime Minister told all local and global automakers that Egypt is keen to offer all aspects of support and incentives for localising the industry.
Port Said industrial complex
Furthermore, during his visit to East Port Said Industrial Zone, Madbouly witnessed the signing of a memorandum of understanding (MoU) with a global company under which it shall conduct studies on establishing an automobile industrial complex in the Zone.
The MoU was signed by Chairman of the Suez Canal Economic Zone (SCZone) Yehia Zaki, CEO of the Sovereign Fund of Egypt Ayman Soliman, Chairman of East Port Said Development Company Karim Samy, and Chairman of the PAC Group Shah Firoozi.
The deal comes in line with the state willingness to apply state-of-the-art global standards in establishing automobile industrial complexes and mobilise the latest technology related to this industry to meet local needs.
According to the MoU, the SCZone, the Sovereign Fund of Egypt, and East Port Said Development Company shall form a consortium to outline a clear vision and a specific plan, including detailed feasibility studies, to strengthen partnership between public investments and the private sector to localise the automobile industry.
PAC shall analyze and conduct a survey of the global market environment for the global automobile industry, in addition to suggesting a preliminary plan for the industrial complex, the cabinet said.
The East Port Said harbor comprises of 7.4 kilometres of quays with a depth of 18 metres, which were provided with various infrastructure facilities, communication, and sewage system.
The Premier also toured the central laboratories’ hub, which is established on an area of 550 metres with a total cost of EGP 38.250 million. The hub offers services to the customs authority with the aim of supporting the trade movement and easing customs’ measures.
One of the biggest projects carried out in SCZONE over the past phase includes a cooperation agreement signed between the SCZONE and a Japanese side as part of a Japanese-French alliance, which implements a rollover vehicle station (RORO), a station dedicated to cars managed by two Japanese companies, namely Toyota Tsusho and the Nippon Steel Corporation, according to the cabinet.