Egypt has strong interest in growing mobile phone manufacturing industry: PM

Cairo – August 11, 2024: Prime Minister Mostafa Madbouly highlighted that the government has a strong interest in the mobile phone industry, both for meeting local demand and for export purposes in a recent cabinet meeting.

The government previously revealed it is looking to localize 40% of smartphone production and its total manufacturing input – which includes components, design, development, and software.

The prime minister chaired a meeting today at the government headquarters in New Alamein to discuss advancing the localization of mobile phone manufacturing for export, emphasizing the government’s commitment to enhancing local production and export capabilities in the mobile phone sector.

The PM added that Egypt is working to enhance the business environment to encourage various international companies to be present and manufacture in Egypt, and for the industry to be as large as possible.

The Sunday meeting was attended by Minister of Communications and Information Technology Amr Talaat and Minister of Finance Ahmed Kouchouk.

The PM noted that several companies have already started local manufacturing of mobile phones and encouraged further investment to achieve self-sufficiency for the local market and boost exports.

Talaat reviewed the progress in the mobile phone manufacturing industry, noting that Samsung's factory in Beni Suef, established in 2022 with a $20 million investment, produces 2 million units annually and provides 400 jobs.

Vivo's factory in 10th of Ramadan City, also established in 2022 with a $20 million investment, matches Samsung's production capacity and job creation.

Companies like Xiaomi, Nokia, Infinix, and Micromax contribute to local manufacturing with a combined production capacity of approximately 7.5 million units. Nokia’s 2023 partnership with SICO in Assiut, involving a $20 million investment, produces 2.5 million units and provides 400 jobs.

The total production capacity of these facilities now stands at 11.5 million units, with current investments totaling $87.5 million and generating 2,050 jobs, according to the MCIT minister.

Talaat also outlined the strategy to localize the mobile phone industry, which includes various incentives to attract new investments and support the development of the sector.

The government is committed to supporting the industry through infrastructure development and private sector involvement, as well as stimulating private sector investments to grow its industrial sector.

By 2030, Egypt aims to increase exports to over $146 billion, with previous statistics putting the country’s import bill for mobile phones in 2023 as $1.5 billion, and $4.6 billion for cars.

In May, Madbouly told media that the government is focused on implementing the State Strategy for Boosting National Industry in productive fields and further capitalize on the developed infrastructure nationwide.

This would support localizing industries to meet domestic demand, reduce the import bill, and boost exports, he explained.

Madbouly added that the government is ready to offer its support to improve work and productivity in various industrial companies and factories.