Tue, 08 Aug 2023 - 08:42 GMT
Tue, 08 Aug 2023 - 08:42 GMT
Egypt announces groundbreaking fund and council to drive innovation in the environment-friendly automotive sector - File Photo
CAIRO – 8 August 2023: Hossam Heiba, CEO of the General Authority for Investment and Free Zones, has announced intentions to establish a fund to support Egypt's automobile industry, which is expected to revitalize the country's automotive sector.
Heiba announced the signing of three memorandums of understanding with some of the world's biggest automakers, indicating a commitment to localizing the industry within Egyptian boundaries.
"Our efforts are focused on bolstering the production capacities of the automobile-related industries in Egypt, with significant Japanese and Tunisian investments in this pivotal sector," Heiba explained.
The creation of the Supreme Council for Automotive Industry and the Environment-Friendly Automotive Industry Fund is detailed in Law No. 162 of 2022, as published in the official gazette.
According to the law, the Prime Minister will preside over the council, with the Minister of Industry serving as vice chairman. Other members of the council will include ministers from the public sector, planning, transport, finance, and military production, as well as four industry experts appointed by the Minister of Industry for a four-year tenure. The primary goal of the council is to grow and improve Egypt's automotive manufacturing sector.
The legislation also mandates the establishment of the Environment-Friendly Automotive Industry Fund, designed to support the production of environmentally conscious vehicles—those that produce no emissions or negative environmental impact. The fund aims to cultivate the necessary resources for financing Egypt's burgeoning eco-friendly automotive sector.
The launch of the National Strategy for Automotive Industry Development in 2022 has already proven successful in attracting several component manufacturers to Egypt's automotive landscape, including the notable presence of Sumitomo, a Japanese industry giant renowned for its automotive wire harness production.
This strategic move underpins Egypt's commitment to fostering a thriving and innovative automotive industry, aligning with global trends toward sustainable and eco-friendly transportation solutions.
Egypt's automotive sector has witnessed a remarkable transformation in recent years, with a steadfast commitment to innovation and sustainability. The nation's efforts to attract global automotive players have yielded fruitful partnerships and substantial investments, solidifying its position as a regional hub for cutting-edge automotive manufacturing.
Egypt is paving the way towards a greener and more technologically sophisticated automotive landscape through strategic cooperation and programs such as the Environment-Friendly Automotive Industry Fund.
The ongoing growth of the automotive industry is expected to boost economic resilience and offer numerous job opportunities, maintaining Egypt's status as a competitive player in the global automotive arena.