Egypt pens 3 binding framework agreements for local car assembly
Updated 11/10/2023 2:25:00 AM
Arab Finance: The Egyptian government has signed three binding framework agreements with Ezz Elsewedy Automotive factories, International Trade Agencies and Marketing Company (Itamco), and GB Corp Egypt for local car assembly, the Egyptian cabinet announced in a statement on November 9th.
The agreements have been signed between the three companies and the General Authority for Investment and Free Zones (GAFI), the Ministry of Finance’s Environmentally Friendly Automotive Industry Fund (EFAIF), and the Ministry of Trade’s Car Manufacturing Unit.
Prime Minister Mostafa Madbouly said that the three agreements come in light of the government’s interest in developing the automotive industry in Egypt, especially the environmentally friendly ones.
Also, the move coincides with the launch of the Egyptian Automotive Industry Development Program’s (AIDP) electronic platform during the African Intra-Trade Fair (IATF 2023) being held from November 9th to 15th at Egypt International Exhibition Centre and Al Manara International Conference Centre.
Ezz Elsewedy factories’ investments exceed $15 million, with a production capacity hitting up to 50,000 cars in the next few years, CEO Abdel Rahman Sultan said, noting that the factories would see the manufacturing of the Malaysian cars of Proton.
Sultan added that the group is planning to manufacture Proton cars for the local market at competitive prices, as well as export to other countries.
For his part, Ramez Adeeb, a representative of Itamco and GB Corp Egypt said that a factory is currently being built in Sadat City at an investment cost of EGP 2 billion and will produce 50,000 units annually.
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