Egypt signs four agreements for local car assembly

Ahram Online , Friday 10 Nov 2023

Egyptian government and auto manufacturing entities signed framework agreements with three local companies to cooperate in domestic car assembly, according to a Cabinet statement on Thursday.

Worker in car assembly factory in Egypt.
Worker in car assembly factory in Egypt.


The agreements were collectively signed by the government, the General Authority for Investment and Free Zones (GAFI), the Ministry of Finance’s Environmentally Friendly Automotive Industry Fund (EFAIF), and the Ministry of Trade’s Car Manufacturing Unit.

Additionally, Ezz Elsewedy Car Factories, the International Trade Agencies and Marketing Company (Itamco), and Ghabour Egypt were among the signatories.

Egyptian Prime Minister Mostafa Madbouly emphasized that these agreements form part of the Egyptian Automotive Industry Development Program (AIDP), a comprehensive policy designed to grow the automobile industry and its associated sectors.

The signing of these agreements coincides with the launch of the AIDP's electronic platform during the African Intra-Trade Fair (IATF 2023) between 9 and 15 November.

Ezz Elsewedy Car Factories, with investments exceeding $15 million, are gearing up for a production capacity of 50,000 cars in the near future. The company plans to manufacture both conventional fuel cars and electric vehicles for the domestic market and for export.

Moreover, Ramez Adeeb, a representative of Itamco and Ghabour Egypt, announced the construction of a factory in Sadat City with an investment of EGP 2bn and specialized equipment valued at $20 million. He added that the factory will produce 50,000 units annually.

Other factories of the consortium, belonging to Prima and Abu El-Futouh, are expected to reach a production capacity of 50,000 units and 100,000 units, respectively.

Environmentally friendly cars have become a focal point for Egypt's automotive industry development.

Egypt unveiled its national strategy for localizing the automotive industry in 2022, with the aim of positioning itself as a key player in Africa's emerging vehicle markets.

Boosting domestic manufacturing of vehicles may also help stabilize Egypt’s domestic automotive market. Since March 2022, the market has been grappling with unprecedented stagnation largely due to a decline in imports and a shortage of foreign currency.

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