Egypt allocates EGP 1b to localise car manufacturing – FinMin

Egypt’s Finance Minister Ahmed Kouchouk revealed that the government has earmarked 1 billion Egyptian pounds in 2024/2025 budget to support the automotive industry localisation strategy, as per an official statement on Wednesday.

The statement added that this allocation is intended to encourage investment partnerships in the car manufacturing sector, specifically targeting an increase in local car production to more than 45 percent within the current year.

Kouchouk announced that seven companies are registered in the automotive industry localisation strategy initiative. The Egyptian Customs Authority released the first shipments of production requirements last August.

Tax and customs transactions are automated for registered companies, with a specialised unit in the ministry to facilitate procedures and overcome obstacles. These efforts aim to increase annual car production with higher local added value.

He emphasised the ministry’s commitment to engage with car manufacturers, encouraging them to register in the new system to help achieve the state’s goal of boosting local content in vehicle production.

Kouchouk stated that incentives are tied to meeting targets. Nissan Company received the first entitlement of 120 million pounds, which can be used to settle government debts, easing financial burdens and supporting operational cash flows.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama