Egypt allocates EGP 1 bln to boost local automotive industry
The initiative aims to boost local car production substantially and attract international investment into Egypt’s automotive sector.
The government is making swift strides towards establishing Egypt as a regional hub for automotive manufacturing. It intends to increase the local component of car manufacturing to over 45 percent this year.
"We are targeting a significant rise in the local production of cars," Kouchouk said, stressing the initiative’s importance in meeting global supply chain needs and rising domestic demand.
Seven companies have already registered under the new strategy, which signals positive momentum in the automotive sector.
Big steps taken!
In line with this, Egypt's Customs Authority released the first shipments of production materials for these companies in August 2024. The move is expected to simplify the country's manufacturing process, with tax and customs transactions now automated for ease of operations.
The government works closely with car manufacturers to encourage further registration in the new system. A dedicated unit at the Ministry of Finance has been established to streamline procedures and resolve potential obstacles. This is a key step in Egypt’s broader plan to reshape its industrial future, expand meaningful employment, and amplify the country’s economic competitiveness on the global stage.
In a notable development, Nissan has already received its first incentive worth EGP 120 million, which can be offset against its government debts. This marks the first of what will likely be many incentives as part of the government’s push to ensure the automotive sector thrives under the new strategy.
The focus on localizing production comes amid a growing push by the public and private sectors to make Egypt a key player in the regional automotive industry.
The EGP 1 billion commitment to the "Automotive Industry Localization Strategy" indicates that Egypt is positioning itself to capture a larger global automotive supply chain share, much like recent parallel initiatives, including partnerships with global giants like Geely and NASR Automotive.