Investment Ministry developing transparent policies, reforms to facilitate auto industry localization

Cairo – October 22, 2024: The Ministry of Investment and Foreign Trade is working diligently to implement transparent policies and clear standards aimed at regulating the automotive industry in Egypt, with Minister of Investment and Foreign Trade, Hassan El-Khatib, adding that ongoing financial and procedural reforms are underway to provide further facilitation for local investors to localize the industry and to enhance the country’s foreign trade activities.

The investment minister held an extensive meeting with representatives of global car manufacturers, agents, and distributors to bolster Egypt's automotive industry on Tuesday.

The discussion focused on the localization of automotive production in Egypt and the challenges faced by the sector, in line with the government’s current efforts to localize industries and establish a strong export base.

During the meeting, Minister El-Khatib emphasized the government's deep commitment to the automotive sector, recognizing its key role in attracting foreign investments and promoting industrial growth.

Among the ministry’s immediate priorities is reducing customs clearance times and alleviating tax and financial burdens on investors.

Representatives from the automotive sector shared their suggestions on overcoming the challenges facing the industry and advancing its development during Tuesday’s meeting.

In August, Prime Minister Mostafa Madbouly stressed the importance of localizing the industry, explaining that it would support reducing the country’s import bill that has previously cost Egypt’s public treasury about $5.5 billion annually.

The PM added that the government’s goal is to transform Egypt from an import center to an export hub, boosting its position in global markets.

The meeting was also attended by prominent figures including Dr. Gihan Saleh, Advisor to the Prime Minister, Mr. Ahmed El-Wakeel, Chairman of the Federation of Egyptian Chambers of Commerce, Dr. Alaa Ezz, Secretary-General of the Federation, and Dr. Amani El-Wassal, Head of the Agreements and Foreign Trade Sector.

In a release clearly today, data from the Central Agency for Public Mobilization and Statistics (CAPMAS) revealed a continuous decline in Egypt’s car imports, with July 2024’s car imports amounting to $170.4 million, a drop from $232.7 million in July 2023.