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Wednesday, 15 June 2022

The government’s automotive strategy dominated the airwaves last night

The government’s auto strategy took center stage on the airwaves last night: Prime Minister Moustasfa Madbouly’s speech on the government’s automotive strategy and a number of MoUs signed on the sidelines led the conversation on the airwaves last night, with Masaa DMC (watch, runtime: 1:49), Al Hayah Al Youm (watch, runtime: 8:01), Yahduth Fi Masr (watch, runtime: 8:51), and Ala Mas’ouleety (watch, runtime: 30:15) all covering the news.

The drive to localize: Speaking at the East Port Said Industrial Zone, the PM said that the government’s goal is to expand the local production of vehicles and localize supply chains by supporting domestic feeder industries. The country has spent USD 4 bn on importing cars over the past year, which is not sustainable should car ownership continue to rise in the coming years, he said.

One of the PM’s advisors gave a bit more clarity on Yahduth Fi Masr, telling show host Sherif Amer that incentives will be provided based on the level of investment and production, the quantity of local components used, and the adoption of eco-friendly technologies (watch, runtime: 8:51).

We’ve already seen some parts of the strategy in action: Changes to customs duties on hundreds of imported goods were passed by the House earlier this month. Included in these were tax breaks for manufacturers who source at least 60% of components from local suppliers, and a 2% tariff on equipment used for EV charging stations and natgas filling stations, as well as a number of components used in electric buses.

Want a primer on the strategy and what auto players want to see from it? Read our in depth Inside Industry poll here.

A number of agreements were signed at the event:

  • A new car assembly factory: Egyptian International Motors, the Suez Canal Economic Zone (SC Zone), the Sovereign Fund of Egypt (SFE) and the East Port Said Development Company (EP) signed an MoU to explore building a factory capable of producing 75k cars a year.
  • The study that could make it happen: UK engineering consultancy PAC Group signed an MoU to conduct a feasibility study on the proposed factory.

Fury as the Pharaohs collapse in 4-1 loss to South Korea: The national team’s 4-1 loss to South Korea got the talk show heads furious, with Ala Mas’ouleety’s Ahmed Moussa slamming the team for their bad performance and describing the game as a “disgrace” (watch, runtime: 4:54). He said no resignations were yet made from the Egyptian Football Association (EFA) after a week of disappointing performances, the latest being the Pharaohs' embarrassing 2-0 loss to Ethiopia. The EFA will announce several decisions on Thursday, Moussa said, expecting the association to name a new coach for both the national and olympic football teams among other decisions. Al Hayah Al Youm (watch, runtime: 19:03), Masaa DMC (watch, runtime: 11:22), and Kelma Akhira (watch, runtime: 7:23) also covered the result.

Uncle Joe goes to Riyadh: Yesterday’s news that President Joe Biden will make his first visit to the region next month got wide coverage: Kelma Akhira (watch, runtime: 19:20), Ala Mas’ouleety (watch, runtime: 4:48) and Yahduth Fi Masr (watch, runtime: 3:23).

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