Minister of industry and Foreign Trade Tarek Qabil said Egypt is qualified for the establishment of a real automotive industry based on manufacturing, rather than assembly, by raising the proportion of local components and increasing the added value.
This is in addition to making use of the competitive advantages Egypt enjoys, in particular its accumulated experience in this industry through major international brands operating in the sector, as well as highly trained technical workers.
Qabil added that Egypt’s geographical location also makes it an ideal hub for exporting to various international markets. Moreover, Egypt is linked through many of the trade agreements that allow Egyptian products to enter the African, European and Arab markets without customs restrictions.
Qabil said that Egypt is seeking to develop an integrated incentive system to encourage global-producing companies to manufacture their products in Egypt.
He further pointed out that the automotive industry a labour-intensive industry and is interrelated with feeding industries, in which Egypt has major potentials and capabilities. Furthermore, the automotive industry is based on modern technology, making it feasible for exporting.
The minister met with representatives from BMW and General Motors company to discuss the incentives for manufacturing automotives in African countries, including, for example, Morocco, South Africa and Nigeria.