Thursday 06 Mar
Minister of Finance Ahmed Kouchouk said that the government has allocated one billion Egyptian pounds in the 2024/2025 budget to support the "Automotive Industry Localization Strategy." This initiative is designed to attract investment partnerships in vehicle manufacturing and boost domestic car production. A key target of this strategy is to achieve a local component in car production exceeding 45% within the current year.
He added that seven companies are currently registered in the "Automotive Industry Localization Strategy" initiative. The Customs Authority released the first shipments of production supplies under this initiative last August. He noted that tax and customs transactions for registered companies have been automated to streamline processes, and a specialized unit within the Ministry of Finance is available to facilitate procedures and address any obstacles. This supports the state's efforts to increase annual car production with growing local added value.
Minister Kouchouk emphasized the importance of maintaining
ongoing communication with car companies to encourage registration in the new
system, and working with relevant ministries to provide full support for
facilitating domestic car production, in order to achieve the state's targets
for increasing the local component.
The Minister clarified that incentive eligibility is linked to achieving specific production targets. The first incentive payment of 120 million Egyptian pounds was issued to Nissan. This payment can be used to offset Nissan's government debts which reduces Nissan's financial burden and provides essential cash flow for its operations.
