Trade and Ind Minister notes that the fund would be aimed specifically at sectors where Egypt would have competitive advantages when competing with local and foreign markets
During the “Egypt Can by Industrialization” conference, Minister of Trade and industry (MTI) Nevin Gamea announced that the government is considering establishing an industry stimulus fund, with a particular interest in the automotive industry.
In a statement released by the cabinet, Gamea noted that the fund would be aimed specifically at sectors where Egypt would have competitive advantages when competing with local and foreign markets.
The automotive industry, including manufacturing, is at the top of the targeted industries in which the minister, with cooperation with all state agencies, is looking towards developing clear-cut strategy with specific targets.
At this present phase, the government is aiming to improve the auto industry to increase the contribution and amount of local automotive components to be more competitive in local and foreign markets.
The statement states that the automotive industry strategy aims to provide opportunities for transforming and promoting Egypt in a regional automotive industry hub, while also attracting more domestic and foreign investments to the sector.
In a separate statement, Minister of State for Egyptian Military Production Mohamed Ahmed Morsy stated that Egypt has a clear strategy to localize the auto industry in Egypt, and the current stage is witnessing an increase in the percentage of local components in the auto industry to 45 percent.
The country’s goal is to increase the percent of local components to 60 percent, Morsy added.
He continued to state that “Egypt is working in cooperation with the concerned authorities to achieve this goal, and Egyptian experts and scientists abroad who have an advanced vision in the auto industry contribute to this, and we are working to benefit from these experiences”.
Both Morsy and Gamea emphasized their enthusiasm to develop Egypt’s auto industry, and its supplementary industries, with Morsy adding that Egypt’s industrial base qualifies it to become a regional center for the manufacturing of vehicles.
Gamea highlighted her eagerness to benefit and support all Egyptian experts abroad, urging them to contribute to the development of the auto industry and provide ideas to resettle the industry.
For over 5 years now, several plans for incentive programs and directives have been scrapped.
With the announcement and development of a upcoming campaign to remove 200 thousand plus cars from the roads to be refitted with modern dual-fuel engines to start early next year, perhaps the news can be taken seriously as part of a cohesive strategy.
