Association of Automotive Manufacturers in Africa (AAAM) held a meeting in Egypt’s East Port Said industrial zone to explore investment opportunities in the automotive industry. The meeting was attended by Ahmed Samir, Egyptian Minister of Trade and Industry, Walied Gamal El-Dien, Chairperson of the Suez Canal Economic Zone (SCZONE), Karim Sami Saad, Chairperson of East Port Said Development, and representatives of car manufacturers from around the world.
Mike Whitfield, President of AAAM and Consultant for Political Affairs and External Relations of the Nissan Group, and Martina Biene, CEO and Managing Director of the Volkswagen Group South Africa, led the meeting. The Egyptian government’s investment incentives for the automotive industry, launched in October 2020, were discussed, along with SCZONE’s strategic plan for 2020/25.
Whitfield stated that Egypt will become a hub for vehicle manufacturing and a significant player in the auto production and trade system within the African Continental Free Trade Area (AfCFTA). He predicted that the demand for new vehicles will increase from 1.1 million to 5 million over the next 15 years, which will enable deep industrialization of the value chain in Egypt and across Africa.
Saad added that the integration of various elements within the East Port Said industrial zone makes it an attractive destination for automotive manufacturers. The East Port Said Development Company is aiming to create a specialized zone for automotive manufacturing known as EPAZ and is making efforts to attract various brands from global automobile manufacturers to participate in a joint automotive manufacturing complex.
After the meeting, the delegation visited East Port Said Port, which was recently ranked among the top 10 global ports in terms of efficiency by a World Bank report. They also inspected the container berth operated by the Suez Canal Container Terminal and the Suez Canal Ro-Ro Terminal operated by an international consortium including Toyota Tsusho, NYK, and AGL.
The delegation also visited the construction site of the Egyptian National Company for Railway Industries (NERIC) factory, which aims to assemble rolling stock and subway vehicles locally. Ahmed Al-Mofti, General Manager of NERIC, confirmed that the company has ambitious plans to start production during the first quarter of 2024.
The meeting concluded with a review of the automotive industry strategy in Egypt and the incentives offered by the government to promote and localize the sector in the Egyptian and African markets. AAAM aims to work with countries and institutions in the African continent to enhance the automotive sector throughout the continent.
