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Thursday, 26 August 2021

GM eyes further Egypt investments as gov’t incentives auto exports

General Motors could be looking to invest more in Egypt. That’s the key takeaway from GM MEA President and Managing Director Luay Al Shurafa’s sitdown earlier today with Trade and Industry Minister Nevine Gamea. The two discussed how GM’s expansion plans might dovetail with the Madbouly government’s drive to grow car exports and localize EV production, according to a cabinet statement. This includes the EGP 500 mn government program approved in April that will provide incentives for automakers who export vehicles abroad as part of the EGP 6 bn subsidy program. Al Shurafa did not commit to a specific plan to grow local operations, but expressed his appreciation for the government’s support of the industry in general — and the export subsidy program in particular.

The automotive industry has been waiting for years now on a package of incentives from the government: The legislation for the long-awaited automotive directive has been in the works since 2016 and aims to encourage car assemblers and feeder industries through legislative provisions, incentives, infrastructure improvements, and trade agreements to allow the industry to better compete with European Union, Moroccan and Turkish imports. The strategy was approved by the cabinet in March 2020, but still needs the greenlight from the House of Representatives.

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