As a part of Egypt’s insistence on supporting and delivering its plan to localize the car trade, the Egyptian Ministry of Navy Manufacturing held talks Dec. 16 with the Emirati M Glory Holding specializing in automobile manufacturing to debate the manufacture of Egyptian-made automobiles.
Egyptian Minister of Navy Manufacturing Mohamed Ahmed Morsi mentioned in an announcement Dec. 16, “Cooperation with the United Arab Emirates [UAE] goals at rolling out a plan to localize modern technologies within the vehicle trade. An Egyptian-Emirati firm has been established on this vein to have Egyptian laborers produce and manufacture bi-fuel automobiles, and this can be a first in Egypt.”
Morsi continued, “Such cooperation helps the formidable and unprecedented plan to increase using pure fuel for automobiles and to profit from the latest availability and discovery of fuel in Egypt.”
In statements Dec. 16, Magda al-Azazi, chairman of the board of administrators of the Emirati M Glory Holding, mentioned, “Cooperation with Egypt goals to fulfill the native and African want for pickup automobiles, i.e., transport automobiles, particularly those who run on pure fuel and gasoline.”
She famous, “These automobiles provide many benefits, as they’ve the very best engine capability for pickup automobiles available in the market. They’ve snug seats, sturdy air-con and high-tech security options. In addition they function in temperatures appropriate for the Center East, the Gulf and Africa. As well as, they will function on varied sorts of roads, which facilitates their export to Africa.”
Azazi continued, “Cooperation with Egypt within the manufacturing of automobiles additionally goals at producing automobiles which are extra environmentally pleasant in an effort to cut back air pollution.”
On Aug. 9, the Egyptian Ministry of Navy Manufacturing introduced together with the Emirati firm the institution of an Egyptian-Emirati automotive trade firm underneath the name EM to provide automobiles that run on pure fuel and gasoline in Egypt.
The new company is aiming for a manufacturing capability of 12,000 automobiles yearly in an effort to meet the wants of the Egyptian and African markets, with manufacturing scheduled to begin within the first half of 2022. Additionally, the corporate is ready to deploy 20 factories for this objective.
In March 2020, Egypt launched the national strategy for the localization of the car and gasoline industries in Egypt. President Abdel Fattah al-Sisi instructed the federal government to begin rolling out the technique of domestically manufactured automobiles that function on new vitality sources akin to pure fuel and electrical energy as an alternative choice to conventional fuels.
On Dec. 22, Egyptian Prime Minister Mustafa Madbouly mentioned, “The state has a robust curiosity in supporting the car trade and its affiliated industries in Egypt, and the federal government is absolutely prepared to offer all doable technique of help to constructing severe partnerships with any entities and corporations able to supporting the car subject in Egypt.”
The Egyptian authorities is making an attempt to offer incentives for worldwide firms specialised within the automotive trade to put money into Egypt and help Cairo’s plan to localize the trade. On Dec. 21, Finance Minister Mohamed Maait mentioned, “There are presidential orders to check and approve incentive packages to localize strategic industries akin to the car trade, particularly electrical automobiles, in order to contribute to maximizing our output, increase our export base and improve the competitiveness of Egyptian merchandise in international markets.”
There have been ongoing Egyptian efforts aimed toward encouraging non-public sector firms to help the state’s plan to localize the automotive trade, particularly electrical automobiles. On Dec. 21, Madbouly met with representatives of Basic Motors and Mansour Automotive Group to discuss their plan to fabricate the proposed electrical automobile in Egypt.
Nour el-Din Darwish, vice chairman of the Automotive Division of the Egyptian Chamber of Commerce, informed Al-Monitor, “The state is adamant to localize the car trade by encouraging partnerships with main financial entities or international locations.”
He mentioned, “Localizing the car trade will pave the way in which for brand new job alternatives and can allow Egypt to export such automobiles to African international locations.”
Darwish famous, “Egyptian-Emirati cooperation within the transport car trade permits overlaying the wants of the native market, particularly contemplating that transport car gross sales in Egypt are excessive.”
He added, “Egypt is trying to produce environmentally pleasant automobiles, akin to electrical automobiles and automobiles that run on pure fuel as a result of within the coming interval using gasoline, which harms the atmosphere, will decline globally.”
Hussein Mustafa, former government director of the Car Producers Affiliation, informed Al-Monitor, “The Emirati-Egyptian cooperation within the automotive manufacturing subject in Egypt goals to increase exports to the continent of Africa.”
He identified that “this automobile has a aggressive benefit that makes it being bought in Africa at low costs and helps it compete with every other automobile. Egypt is a signatory to the COMESA settlement, which imposes lifting customs duties on Egyptian exports to Africa, thus contributing to providing them to African international locations at low costs.”
COMESA is a joint settlement among the many international locations of jap and southern Africa, and it contains lifting customs duties on imports and exports between the signatory international locations.
Twenty-one international locations signed the COMESA settlement, specifically Egypt, the Democratic Republic of the Congo, Comoros, Burundi, Eritrea, Djibouti, Kenya, Ethiopia, Eswatini (Swaziland), Malawi, Madagascar, Libya, Seychelles, Rwanda, Mauritius, Tunisia, Sudan, Somalia, Zimbabwe, Zambia and Uganda.
Mustafa famous, “The brand new automobile additionally has aggressive benefits that assist it unfold in African international locations. Chief amongst these is that it’s a fuel-saving automobile that’s appropriate for Africa’s sizzling climate and geared up with sturdy air-con. The automobile may journey on unpaved roads.”
He concluded, “The cooperation between the Ministry of Navy Manufacturing and the UAE stems from the truth that the ministry owns a number of factories and manufacturing traces that enable the speedy begin of the manufacturing course of.”
