Egyptian gov't works to increase private sector's contribution to national economy to 65%: PM

MENA , Friday 25 Aug 2023

Egypt's Prime Minister Mostafa Madbouly said the government is working to promote the private sector’s role and increase its contribution to the national economy to 65 percent in the next few years.

Prime Mostafa Madbouly during his tour to the automotive industry modernization center earlier Friday in South Africa. Photo : Egyptian Cabinet


The government is also continuing to improve the investment environment to become more attractive through developing the relevant legislative framework, removing bureaucratic obstacles, and facilitating procedures related to new business registration, Madbouly added.

The prime minister made the remarks during a tour he made on the fringes of the 15th BRICS Summit held in South Africa.

Madbouly is participating in the summit on behalf of President Abdel Fattah El-Sisi.

The premier's tour included the automotive industry modernization center and a group of auto factories, where he visited a number of production, assembly and spare part sites.

He was briefed on production stages, training mechanisms, distribution plans, and the incentives granted by the South African government to factories.

The prime minister met with members of the African Association of Automotive Manufacturers (AAAM), in the presence of the President of Ford Motor Company Africa Neale Hill, CEO of AAAM David Coffey, in addition to Mike Whitfield, the Nissan Group Strategic Advisor and the President of AAAM.

The meeting was also attended by the Country Director at Nissan South Africa Kabelo Rabotho, Executive Director of South Africa’s National Association of Automotive Component and Allied Manufacturers (NAACAM) Renai Moothilal, and Executive Director of the National Association of Automobile Manufacturers of South Africa (NAAMSA) Mikel Mabasa.

A number of senior South African officials took part in the meeting via video conference.

Madbouly pointed out his meeting with Mike Whitfield in 2021, noting that since this meeting the government has issued a comprehensive strategy for upgrading the automotive sector in the country.

Egypt benefited from valuable information and technical support provided by the African Association of Automotive Manufacturers, he added.

He also noted that Law No. 162 of 2022 was issued in Egypt last October, forming two main entities with a view to maintaining coherent, consistent and dynamic policies for the automotive sector.

The two entities are the Supreme Council for Auto Manufacturing and a fund to finance the manufacture of eco-friendly vehicles, he said.

During the meeting, the prime minister got acquainted with the latest developments in the auto industry in South Africa, which accounts for 4.9% of the gross domestic product (GDP) and about 12.4% of the country's exports.

Nearly 352,000 vehicles manufactured in South Africa are exported annually to 152 countries.

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