Egypt delivers 28,000 cars to beneficaries of old car replacement presidential intitiative: Minister

Ahram Online , Friday 21 Jun 2024

Minister of Finance Mohamed Maait said Egypt has so far handed over more than 28,000 cars to beneficiaries of the presidential initiative to replace car models going back 20 years or more with modern and environmentally friendly ones.

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In a statement on Friday, Maait said the state’s public treasury incurred EGP 718 million to provide incentives to encourage users to swap their old vehicles for eco-friendly ones.

This comes “despite economic challenges…  supply chain disruptions, soaring prices for goods and services, and the immense pressures on the state's general budget,” the statement quoted Maait as saying.

The initiative, launched in March 2021, grants owners of old vehicles loans, repayable in monthly instalments over 7 to 10 years, to swap their old cars for new dual-fuel engine ones at an annual interest rate of 3 percent.

The scheme mandates that natural gas-powered cars be assembled in Egypt using at least 45 percent locally manufactured components.

The initiative is part of the country’s environmental effort to curb air pollution and carbon emissions.

Rickety cars replaced under the initiative have already been scrapped at workshops nationwide.

The initiative is also meant to attract investors to green projects and localise new industrial activities by recycling old spare parts using safe methods and eco-friendly technologies.

Furthermore, Maait said Egypt aims to develop the automotive industry sector to become a regional centre for manufacturing and exporting cars, leveraging its capabilities and distinguished strategic location.

The focus is now shifting towards electric vehicles, Maait said, a move intended to effectively contribute to the expansion of clean energy initiatives and the rationalization of petroleum product usage.

Such plans, he noted, are meant to alleviate the burden on citizens while stimulating companies specialized in environmentally friendly and electric vehicle manufacturing and conversion technologies.

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