The head of the General Automotive Division of the General Federation of Chambers of Commerce, speaking to the “Heliopolis” program, said that the Central Bank’s decision was a shock to the car market and not at its time at all, explaining the reason by saying: “The car market was hoping that it would recover and return to normal.”
He continued: “With all due respect to the state’s priorities and the direction of the dollar for basic commodities, the automobile sector will be greatly harmed, especially if this decision is applied to the agents,” explaining that the agents follow up with the parent companies abroad with a certain number and quantities of cars, and therefore this will have a negative impact if they do not Agents are exempt from this decision.
He added: “I believe that the state will take this into account so as not to harm Egypt’s reputation economically and security-wise.”
He concluded his speech: “There was hope and optimism at the beginning of 2025 that the phenomenon of overprices would be reduced, but after the Central Bank’s decision, overprices on cars will rise, and any gap between supply and demand will lead to higher prices.”
The Central Bank of Egypt directed banks operating in the local market to prevent the procurement of foreign currency for the import of recreational goods, which it limited to 13 commodities, including cars, heavy equipment, phones, clothing, and jewelry, without referring to it. What experts considered to be a semi-official announcement of a weakness in the dollar proceeds has consequences.
The ban list includes: fully manufactured cars, mobile phones and their accessories, food plants and seeds, fresh fruits, cocoa, jewelry and pearls, televisions and electrical appliances, ready-made clothes, children’s toys, used tires and anything used, upholstery and furniture, and heavy equipment (loaders, bulldozers, cranes). ).
Source: Al-Masry Al-Youm
#Egypt. #decision #dollar #shock #car #market
Analysis: Egypt’s Ambitious Plans to Boost its Automotive Industry
According to recent reports, Egypt is vying to become a key player in the African automotive market. The news comes on the heels of the government’s unveiling of its Automotive Industry Development Strategy, which aims to establish Egypt as a hub for the industry [[1]]. As an automotive enthusiast and blog writer, I’ll delve into the implications of this ambitious plan and what it means for the country’s economic future.
Egypt’s foray into the automotive sector is part of a broader strategy to enhance its local production capacity. The government has been actively promoting investment opportunities in the automobile industry, as evident from the Egyptian government’s Invest in Egypt website [[2]]. This push to boost the industry is timely, considering the growing demand for cars in Egypt, largely fueled by an increase in car loans.
However, despite this growing demand, Egypt’s local industry has struggled to keep pace, necessitating additional investment [[3]]. By establishing itself as a hub for the automotive industry, Egypt aims to not only meet local demand but also tap into the emerging African market.
The implications of this development strategy are multifaceted. For one, it has the potential to create jobs, stimulate economic growth, and increase Egypt’s competitiveness in the region. Moreover, if successful, this initiative could also attract foreign investors, fostering stronger trade relationships with other nations.
While the Egyptian government’s efforts to revitalize its automotive industry are commendable, several challenges lie ahead. The country will need to invest heavily in infrastructure, technology, and human capital to support the growth of the industry.
Egypt’s plans to become a key player in the African automotive market are ambitious and have the potential to yield significant economic benefits. As the country navigates the complexities of developing its automotive industry, it is crucial that the government stays committed to its development strategy and addresses the challenges that come with it. If successful, this initiative could be a game-changer for Egypt’s economy and cement its position as a leader in the African automotive market.
