Gamea: Egypt to Localize Auto Industry, Compete in Global Markets

Nevin Gamea, Minister of Trade and Industry announced on Sunday that the government is keen to lay down an integrated strategy to localize the auto industry and improve production quality to compete in the domestic and international markets.

This came during the minister's participation in the activities of the third virtual symposium of the "Egypt Can Industry" conference, which was held under the title "Localizing the Automobile Industry in Egypt", in the presence of Nabila Makram, Minister of State for Immigration and Egyptians Affairs Abroad, Mohamed Ahmed Morsi, State Minister for Military Production, and Abdel Moneim El-Terras, head of the Arab Organization for Industrialization.

Gamea said that the Egypt possesses all the capabilities and qualifications to launch an automotive industry that meets the needs of the local market and exports to regional and global markets. "The ministry seeks coordination and cooperation with all state sectors to develop a clear-cut strategy with specific goals to settle the auto industry and the industries that feed it," Gamea added.

"The government is currently studying the establishment of a fund to stimulate the industry, especially for the sectors in which Egypt has compatitive advantages that qualify it to compete in the local and foreign markets, including the automotive industry and its components," she said.

She pointed out that the government aims during the current stage to transfer the Egyptian auto industry to distinct levels that contribute to increasing the proportions of the local component to be able to compete in the internal and external markets, noting that the auto industry strategy aims to deepen this important industry and turn Egypt into a regional hub for the auto industry, through attracting more local and foreign investments into this vital sector.

Gamea emphazised the government's keenness to provide the necessary infrastructure and legislation to raise the rates of industrial growth through the localization of strategic industries and the transfer of global technologies to the Egyptian market.

The minister pointed out to the directives of the political leadership on the need to expand the use of vehicles operating with natural gas and electricity, with the aim of improving the environment and reducing harmful emissions of fuels, as well as organizing an exhibition in January to start the actual implementation of the state's initiative.

The Minister of Trade and Industry affirmed that the shift to e-vehicles has become a global trend and has several advantages, on top of which is the shift to relying on clean energy and relieving the state from the burden of the fuel bills, noting in this context the importance of preparing the infrastructure necessary to provide stations for charging this type of cars, which is something that the government seeks to implement during the next phase.

Gamea also affirmed her keenness to benefit from all Egyptian experts abroad to use their ideas in localizing this industry, as well as their contributions to setting the strategy for the auto industry, adding that discussions are currently underway with the governor of the Central Bank to provide long financing programs of up to 10 years to purchase cars at low interest.

Morsi said that Egypt has a clear strategy for settling the auto industry in Egypt, and the current stage is witnessing an increase in the percentage of the local component in the auto industry to 45%, with the aim of increasing it to 60% during the next stage.