The government has recently launched a national strategy for localising the automotive industry.
It aims to establish Egypt as a main gateway for emerging vehicle markets in Africa and Europe and to build strong commercial and investment relations with main regional trade partners to ensure sustainable development growth for all sides.
The strategy, which is line with the rules of the World Trade Organisation (WTO), seeks to attract further investments in the vehicle industry in Egypt, create job opportunities, secure hard currency, and develop a competitive vehicle market.
The state has also formulated a comprehensive and integrated industrial policy to attract new investments in the vehicle industry.
The Egyptian Automotive Industry Development Programme (AIDP), which is part of the strategy, includes providing the required framework to develop existing car assembly and manufacturing capabilities and encourage new investment in this sector, according to recent remarks by Cabinet Spokesman Nader Saad.
Vehicles assembled under the umbrella of this programme include passenger cars, sport utility vehicles (SUVs), vans, and microbuses.
The government makes sure to provide the appropriate environment for the development of the automotive industry in the long term, Saad said, affirming that the private sector constitutes an effective partner in economic development.
The automotive industry is crucial to boosting the local economy in the coming phase.
In the same context, Minister of Trade and Industry Ahmed Samir met yesterday Gerd Bitterlich, CEO of Mercedes-Benz Egypt and his delegation.
The two sides reviewed the company’s plans to enhance its presence in the Egyptian market.
Samir said that his ministry is keen to provide all aspects of support for investment projects, being carried out nationwide.
Egypt has taken a series of facilities and incentives to enhance investment environment and to localize the industry, especially the automobile one.
Samir referred to his ministry’s keenness to make links with foreign companies investing in the Egyptian market to identify their problems and to provide urgent solutions through the ministry’s affiliated agencies and in co-operation with various ministries and authorities concerned.
Samir stressed the government’s eagerness to make the Egyptian market a main hub for the production of Mercedes cars to meet the needs of the local market and export to the regional and continental markets.
“The company has a long history in car production in the Egyptian market and enjoys a special and pioneering position in the field of car manufacturing,” he said.
Samir said that the government is working to encourage and develop the car industry by providing incentive packages for local and international companies to deepen local manufacturing.
For his part, Bitterlich said that the company has recently made great expansions in the Egyptian market, including the establishment of the company’s logistic centre in the Suez Canal Economic Zone, which provides an integrated set of advanced services.
The government also launched a fund that will offer incentives for sustainable and greener vehicles.
Dubbed the Environmentally Friendly Car Production Fund, the newly-formed fund will support the development of domestic production of environmentally friendly cars – electric vehicles, dual-fuel, and other hybrid cars – as well as create and promote incentive programmes to encourage innovation and competition in the sector.
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