GB Auto Says to Donate EGP100 million to ‘Long Live Egypt’ Fund

Big 5

GB Auto, a leading automotive assembler and distributor in the Middle East and North Africa, announced Thursday it will contribute EGP 100 million to ‘Long Live Egypt’ Fund.

The board of directors of GB Auto approved to pay the donation (EGP100 mln) over five years at EGP 20 million each year, starting from the current year, 2014.

According to the company’s statement, the board decision will be discussed in the upcoming general meeting.

The ‘Long Live Egypt’ Fund was originally initiated by Egypt’s President Abdel Fattah al-Sisi to support and revive the cash-strapped national economy.

On Wednesday, Egypt’s biggest listed vehicle assembler and distributor, GB Auto (AUTO.CA), reported a 148-% rise in second-quarter profit, citing increased commercial vehicle sales and the expansion of its factories.

Sales of commercial vehicles and construction equipment more than doubled in comparison with the same period last year and Chief Executive Raouf Ghabbour said the Egyptian market was “on the rise”, adding his company was planning further expansion.

The company is Egypt’s sole dealer of Hyundai, Mazda and Geely passenger cars and the local distributor of three-wheeled vehicles known as “tuk-tuks” and motorbikes made by India’s Bajaj. Business activity in Egypt grew in June after three months of contraction.

“Following years of unrest, the market is ready for a breakthrough, and we expect continued strong sales,” he said. “After significant investment in our commercial vehicles manufacturing capacity, we are now seeing the pay-off.”