Egypt’s Minister of Investment and Foreign Trade, Mohamed Farid, said Africa has significant potential to build an integrated automotive industry and strengthen its position in global value chains. Farid made the remarks while opening the Focus Africa Automotive Investment Forum in New Alamein on Friday, as part of the Alamein Africa Forum. The event was organised by the Ministry of Investment and Foreign Trade in co-operation with Afreximbank, South Africa’s Department of Trade, Industry and Competition, the AfCFTA Secretariat, the Southern African Customs Union (SACU), and the African Association of Automotive Manufacturers (AAAM). Farid said the forum aims to translate Africa’s industrial potential and access to the African Continental Free Trade Area (AfCFTA) market into investment projects, regional supply chains, and higher-value manufacturing. Africa currently produces around 1.2 million vehicles annually, while demand is expected to reach between 3.5 million and five million vehicles by 2035, he said. He noted that automotive rules of origin, which require at least 40% African content, could help deepen manufacturing and increase the use of raw materials, components, and other inputs produced across the continent. Minister Farid stressed the need to move beyond policy development and regulatory frameworks towards concrete investment. This, he said, requires developing local suppliers, improving customs readiness, aligning policies, and connecting investors with sources of finance. He welcomed Afreximbank’s commitment to allocate $1bn to support Africa’s automotive industry. Farid also called for stronger links between industrial zones and logistics corridors to facilitate the movement of components and finished products across African markets. The minister highlighted the need for appropriate financing mechanisms to support industrial transformation and mitigate risks associated with green investment. He said the transition to electric and new-energy vehicles requires an integrated ecosystem encompassing vehicle and battery manufacturing, charging infrastructure, skills development, and related services. Farid said Egypt is well positioned to expand its automotive industry, supported by its large domestic market, established industrial base, and strategic geographical location. He added that the National Automotive Industry Development Programme aims to build a competitive automotive and components sector, attract global manufacturers, deepen local production, and boost exports through performance-based incentives. The forum also saw the official launch of the Egyptian-South African Business Council. Farid said Egypt is ready to work with Afreximbank, the AfCFTA Secretariat and AAAM to establish regional production hubs and develop joint projects. He said building an integrated African automotive industry requires partnerships between governments, financial institutions and the private sector. The post Egypt backs Africa’s automotive manufacturing push appeared first on Egyptian Gazette.
