Egypt Invests US$20 Million to Boost Automotive Industry Localization
Egypt has allocated around US$19.7 million to develop its automotive industry for the fiscal year 2024/25. The initiative, unveiled by Minister Ahmed Kouchouk, seeks to localize production and increase local content to more than 45%. Seven companies are involved, and tax operations have been automated to facilitate growth in vehicle manufacturing.
The Egyptian government has earmarked approximately US$19.7 million in its 2024/25 fiscal budget to implement a strategy focused on localizing the automotive industry. Minister of Finance Ahmed Kouchouk announced this initiative, aiming to enhance investment and partnerships within the sector. There is a goal to increase the proportion of domestic components in vehicle production to over 45% within the year.
Currently, seven companies are participating in the automotive localization initiative. The Customs Service has already commenced the distribution of initial batches as part of this initiative since last August. To improve efficiency, tax and customs procedures for the registered companies have been automated, and a specialized unit within the Ministry of Finance has been established to streamline operations, ultimately aiming to boost local production of high-value vehicles.
In summary, Egypt’s strategic allocation of nearly US$20 million to enhance its automotive industry reflects the government’s commitment to localization and investment in sector growth. By fostering local partnerships and automating customs processes, Egypt aims to significantly elevate domestic vehicle component production and increase overall automotive output.
Original Source: tvbrics.com
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