Egypt Targets Growth In Automotive Industry With Localisation Push: Al-Wazir
(MENAFN- Daily News Egypt)
Egypt's Deputy Prime Minister for Industrial Development and Minister of industry and Transport, Kamel Al-Wazir, chaired a Monday meeting with industry stakeholders to discuss the country's automotive industry development strategy.
The focus of the meeting was on increasing local content in car manufacturing, boosting domestic production, and attracting foreign investment.
Al-Wazir emphasised Egypt's potential to move beyond simple car assembly and establish a full-fledged automotive industry. He outlined a comprehensive strategy that includes incentives, benefits, and infrastructure development to support industry growth and create a robust manufacturing base.
A key element of the strategy is the creation of an automotive industrial complex in East Port Said, to be built in partnership with a major global automotive company. This complex will house three factories – a body shop, a paint shop, and an assembly line – allowing for the production of a variety of car models.
A feasibility study conducted by the European Bank for Reconstruction and Development (EBRD) found the project to be economically promising, with a projected return on investment of 17% for manufacturing operations. This underscores Egypt's attractiveness as a destination for automotive investment.
Al-Wazir reaffirmed the government's commitment to supporting global automotive companies looking to establish or expand their presence in Egypt.
The strategy, he said, includes a set of incentives designed to deepen the industry's footprint, provide a foundation for its advancement, and build a significant industrial base. This, in turn, is expected to attract further local and foreign investment, as well as companies that supply parts and components to the automotive industry.
The Ministry, Al-Wazir added, is committed to providing comprehensive support to global automotive companies seeking to produce or expand in the Egyptian market. This support aims to attract real investment, localise the industry, and create new job opportunities for young people.
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