Egypt’s Minister of Trade and Industry Nevine Gamea has revealed that 20,000 citizens registered their data, during the recent Go Green Exhibition, to benefit from the government’s Car Replacement initiative.
Gamea said that the initiative aims to convert and replace vehicles to run on clean energy and natural gas. Of the registrants, more than 10,000 citizens have applied to benefit from the initiative, which reflects their confidence in the political leadership and the government to adopt this important initiative.
The Minister also said that President Abdel Fattah Al-Sisi directed for the government to prepare the initiative to help citizens replace their old vehicles with a modern one.
The replacement would take place on easy terms for citizens, and without adding any additional burdens to them. The initiative includes reducing interest rates and the length of the instalment period.
Gamea’s announcement came during a press conference held at the Go Green Exhibition’s conclusion as the first exhibition of vehicle conversion and replacement technology to work with clean energy.
The Minister said that the exhibition received an unprecedented turnout during its three days, and witnessed many important events. It also saw the participation of nine banks, as well as many companies, factories, and bodies concerned with the auto industry and gas companies.
She noted that all Egyptian banks will participate in the initiative to convert and replace vehicles, so that all vehicles on Egypt’s road system run on natural gas or clean energy. The Central Bank of Egypt (CBE) has circulated fixed requirements for the initiative to all banks.
Gamea said that, in the coming days, the applications submitted on the initiative’s website will be reviewed, after which the applicants who meet the conditions will be notified.
In cooperation with the Ministry of Interior and the Ministry of Local Development, they will be able to apply to scrap their old cars. The minister pointed out that the initiative’s first phase will take place this year by replacing 70,000 cars, in which 55,000 will be private cars and taxis, and 15,000 will be microbuses.
The Minister indicated that the value of the car scrapping scheme was determined in coordination with the Ministry of Finance. The value of the green incentive granted changes will be based on the price of the new car to be purchased.
The value of the scrapping will be combined with the value of the green incentive together, to a maximum of EGP50,000, and will form the advance purchase that will be deducted from the total price of the new car.
Gamea said that switching vehicles to run on natural gas has significant economic effects, as it saves about 50% of the vehicle’s operating costs. This comes in addition to saving maintenance expenses, as well as the positive effects of using natural gas on the environment.
She said that Egypt is currently enjoying a large surplus in natural gas, which prompted the Ministry of Petroleum and Mineral Resources to convert 47,000 cars to run on natural gas during 2020. These figures compare to the 18,000 cars that were converted in 2019.
The minister added that the companies participating in the initiative will receive support from the Ministry of Finance in the form of reductions on customs and value-added tax.