Egypt’s govt. committed to support automotive industry

The Egyptian Minister of Industry, Kamel El Wazir,  reaffirmed the government’s commitment to supporting the growth of the automotive industry in Egypt, emphasising the significance of backing global automotive companies as they expand within the Egyptian market and boost exports. To further this effort, Egypt’s 15 per cent industrial financing initiative remains in place, with a focus on prioritizing key sectors for development.

During discussions with General Motors Egypt, the minister praised the company’s plans to expand its operations in Egypt, increase exports, and implement the National Automotive Development Program (AIDP), beginning with the Chevrolet Optra.

The government is also exploring export incentives for the sector, including support for transport costs, to enhance exports from industries with high local added value.

Sharon Nishi, Chairwoman and Managing Director of General Motors Egypt, reiterated the company’s commitment to increasing local content and positioning Egypt as an export hub for the Middle East and Africa. Furthermore, The company targets exporting some of its car models to North African markets in the future.

Notably, the 15 per cent initiative, offers 120 billion Egyptian pound in financing with a 15 per cent interest rate cap. This includes 105 billion Egyptian pound for working capital and 15 billion Egyptian pound for machinery. Moreover, the government covers 8 billion Egyptian pound in annual interest differentials.

Financing limits are increased to 100 million Egyptian pound for individual companies and 130 million Egyptian pound for multi-party entities. The initiative supports sectors like new energy, free zone factories, and agricultural cooperatives.

Attribution: Egyptian Cabinet

Subediting: M. S. Salama