Egypt’s Prime Minister Mostafa Madbouli launched the national strategy for localizing the automotive industry on Tuesday during a visit to East Port Said Industrial Zone.
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.
Madbouli 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 localizing 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 localizing 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, Madbouli referred to his meetings with local and global automakers in which he affirmed the importance of localizing the automotive industry, noting that the number of imported cars in 2021 reached $4 billion.
Source: Al-Ahram Online
