The Chairman of the Arab Organization for Industrialization participates in the first meeting of the "Supreme Committee for the Automotive Industry"

Prime Minister Mostafa Madbouly chaired, this evening, Wednesday, the first meeting of the "Supreme Committee for the Automotive Industry", in the presence of Dr. Hala Al-Saeed, Minister of Planning and Economic Development, Mahmoud Tawfik, Minister of Interior, Dr. Yasmine Fouad, Minister of Environment, and Eng. Mohamed Salah El-Din, Minister of State for Military Production, Eng. Mahmoud Esmat, Minister of Public Business Sector, Eng. Ahmed Samir, Minister of Trade and Industry, Major General. Eng. Mokhtar Abdel Latif, Chairman of the Arab Organization for Industrialization, Counselor Mohamed Abdel Wahab, CEO of the General Authority for Investment and Free Zones, and Walid Gamal El-Din, President

of the General Authority for the Economic Zone of the Suez Canal

The meeting was also attended by Mike Whitfield, President of "Nissan Egypt and Africa", Eng. Ahab Awad, President of the German "Boisen" company for the manufacture of gaskets, Dr. Khaled Shedid, Chairman of the Non-Executive Board of Directors of El-Nasr Automotive Company, and Eng. Hossam Abdel Aziz, Member of the Board of Directors of the Holding Company. for Metal Industries, and Dr. Ahmed Fikri Abdel Wahab, Vice President of the African Association of Automobile Manufacturers.

The Prime Minister began the meeting by noting that the formation of the "Higher Committee for the Automotive Industry" comes within the framework of following up on the executive position of the national strategy for the development of the automobile industry in Egypt, which was launched last June. One of the outputs of the strategy was the formation of a higher committee to follow up on its implementation.

Dr. Mostafa Madbouly added: We were keen that the committee included in its membership a number of government officials, as well as a group of non-governmental experts, stressing that President Abdel Fattah El-Sisi, President of the Republic, directed that the file of developing the automotive industry be given utmost importance, as well as work to localize this issue. The important global industry and the deepening of the local component in it. Based on this, a strategy was formulated that included specific incentives that specifically encourage the manufacture of electric cars.

During the meeting, reference was made to the formation of the Supreme Committee for the Automotive Industry, by a decision of the Prime Minister, as the formation included a number of experts in the field of the automotive industry.

 

Ambassador Nader Saad, the official spokesman for the Presidency of the Council of Ministers, said: The committee is responsible for approving the general policies, plans and strategies necessary for the development of the automobile industry. The committee prepares a report every three months that includes the results of its work, recommendations and mechanisms for implementing those recommendations.

 Saad added: In the context of talking about the launch of the national strategy for the auto industry last June, it was noted that this strategy includes many incentives for the localization of the auto industry and its feeding industries, and the strategy required a number of executive steps, including the establishment of the Automotive Industry Development Fund. In addition to the establishment of the Supreme Council for the Automotive Industry, and the Automotive Unit to be affiliated with the Ministry of Trade and Industry.

The official spokesman for the Presidency of the Council of Ministers confirmed that, during the meeting, it was noted that the national program guide for the development of the automotive industry had been prepared, which contains incentives, the regulatory framework, standards, emissions, safety, and the availability of industrial infrastructure; The companies eligible to participate in the program are granted a production incentive based on four criteria: the local added value, the annual production volume, the value of new investments, and the environmental compatibility of the car engine (emissions). The incentive is given in the form of a voucher or coupon that can be used to pay customs duties.

With regard to the vision of Egypt’s plan to develop the auto industry 2030, it was pointed out that it is to develop a globally competitive auto industry that contributes to Egypt’s position as a regional center for the automotive industry, as the manufacturing process is characterized by high levels of locally added value, and provides specialized technical job opportunities, It achieves a growth in the rate of gross domestic product, and contributes significantly to the stability of the balance of payments.

Saad pointed out that the strategic objectives of the plan are to attract new investments in the automotive sector from companies specialized in OEMs and global component manufacturers, as well as to enhance the capabilities of local suppliers, in addition to working on the growth of local and export requests, and then there is an opportunity It is important to expand manufacturing operations, in addition to providing more sustainable job opportunities by encouraging the establishment of industries related to the automobile industry and benefiting from the competitive advantages of Egyptian labor.

With regard to customs procedures within the framework of the national strategy for the development of the automotive industry, the meeting dealt with a set of necessary requirements necessary for the implementation of the strategy, which includes the issuance of an induction customs chapter under the name (98) to grant affiliated manufacturers reduced customs categories for production requirements received according to the level of manufacturing, as well as postponing the payment of taxes. Customs duties for joined companies for a period of 3 months from the date of release, with the establishment of a fund to supervise and disburse the incentive to these companies. It was also indicated to benefit from the incentive, whether through paying customs dues or transferring them to one of the importers, and the possibility of using the incentive within a year from the time of submitting the application.

On the other hand, it was referred to the coordination meetings that were held with representatives of the "E-finance" company, to review the financial settlement mechanisms for the incentive certificates presented to the joining companies. Procedures in place within the framework of the implementation of the national strategy for the development of the automotive industry.

During the meeting, the representative of Al-Mansour Automobiles reviewed the company's plan to manufacture 3 models of cars locally by 2024 in cooperation with its partners from parent companies and international brands, stressing that the company is a pioneer in supporting the local industry in the automotive sector.

Meanwhile, the representative of Shift EV reviewed the company's experiences in the industrial conversion technology for electric vehicles, as the company aims to accelerate the transition to electric vehicles, explaining that the company has developed an industrial technology to convert traditional vehicles to electric work using lithium-ion batteries. Designed and manufactured by the company, expressing his aspiration for more cooperation with the Egyptian government during the coming period.