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Monday, 21 December 2020

Automotive-focused fund?

The automotive industry could be getting a boost from a fund the government is mulling to encourage local manufacturing, especially automotive components and vehicle assembly, said Trade Minister Nevine Gamea, according to a cabinet statement. The fund would also support manufacturing in other sectors where Egypt could have a competitive advantage, with an eye to establish Egypt a regional manufacturing hub, Gamea said.

Anyone else having flashbacks to the never-ending discussion of the so-called “automotive directive”?

The plan will begin with the launch of the government’s campaign to convert existing vehicles to natural gas engines, which will kick off at the start of 2021. The government will turn its attention to electric vehicles at a later stage after the necessary infrastructure, such as charging stations, is in place Gamea said. Egypt has been pushing for a shift to clean energy vehicles that run on natural gas and electricity, and will convert 250k old cars to dual-fuel engines by the end of 2023 under the first phase of the natgas transition plan.

For more on the government’s nat-gas conversion scheme, take a look our in depth pieces on the plan in our weekly infrastructure vertical Hardhat: Part 1 | Part 2 | Part 3.

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