The Suez Canal Economic Zone (SCZONE), the Sovereign Fund of Egypt (TSFE), and the East Port Said Development Company (EPSD) signed an agreement with Volkswagen on 12 November to conduct a feasibility study for the East Port Said Automotive Zone (EPAZ).
Under this agreement, Volkswagen will offer technical assistance to the Egyptian parties involved as they work together to create a feasibility study for the EPAZ. EPAZ is a complex that will be established at the industrial zone in East Port Said to locally manufacture vehicles. It is expected to attract USD 240 million (EGP 7.4 billion) worth of investment and more than 6,000 job opportunities.
According to Martina Biene, Managing Director and Chairperson of Volkswagen Group South Africa, Volkswagen is keen on expanding its presence in the Egyptian market through participation in the Automotive Industry Development Program (AIDP).
AIDP is an Egyptian strategy that aims to promote a local car manufacturing industry. It includes incentives to localise manufacturing electric vehicles and enhance investment in the automotive industry.
Due to the sector’s strong potential for economic growth, Egypt aims to boost domestic manufacture of vehicles to contribute to stabilizing the country’s domestic automotive market, especially since the Egyptian automotive market has been suffering from a sharp decline in car imports and an unprecedented spike in prices largely due to successive devaluations of the Egyptian pound.
Volkswagen has been operating in Egypt since May 1976 through the Egyptian Automotive & Trading Co. (EATC).
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