WSA looking to expand into Egypt

At the signing ceremony in Egypt are, standing, Prime Minister Dr Mostafa Madbouly and planning and economic development minister Dr Hala Al-Saeed. Signing, from left, VWSA chair and managing director Martina Biene, General Authority for the Suez Canal Economic Zone chair Waleid Gamal Eldien, Sovereign Fund of Egypt chief executive Ayman Soliman and East Port-Said Development Company managing director Dr Ahmed Fikry
BIG BUSINESS: At the signing ceremony in Egypt are, standing, Prime Minister Dr Mostafa Madbouly and planning and economic development minister  Dr Hala Al-Saeed. Signing, from left, VWSA chair and managing director Martina Biene, General Authority for the Suez Canal Economic Zone chair Waleid Gamal Eldien, Sovereign Fund of Egypt  chief executive Ayman Soliman and East Port-Said Development Company managing director Dr Ahmed Fikry
Image: Supplied

From Kariega to Cairo — the Egyptian government has signed an agreement with Volkswagen Group SA (VWSA) to draw on the carmaker’s decades of experience to localise the automotive industry in the North African country.

The agreement aims for the two entities to work together in developing a feasibility study on a shared automotive painting facility in the East Port Said Automotive Zone (EPAZ) in Cairo.

The government of Egypt has shown its commitment to localise the automotive industry through the announcement of the Automotive Industry Development Programme (AIDP) in June 2022.

The AIDP aims to increase vehicle production volume, boost and attract investment and improve emission standards in the automotive sector.

And VWSA is looking to capitalise on the commitment by expanding its presence in the Egyptian market and intends to explore the feasibility of establishing a multi-model automotive painting facility in the EPAZ, punted to become a world-class automotive manufacturing and logistics hub within the Suez Canal Economic Zone of Egypt.

VWSA managing director Martina Biene said the company was excited about the chance  to establish its presence in the Egyptian market as part of its long-term growth plans on the continent.

“The AIDP is one of the most progressive automotive programmes on the continent which Volkswagen intends to be part of,” Biene said.

“The signing of the strategic co-operation agreement with the government of Egypt is the continuation of Volkswagen’s strategy to play a pioneering and leading role in the development of the automotive industry in Africa.”

The agreement was signed by  General Authority for the Suez Canal Economic Zone chair Waleid Gamal Eldien, Sovereign Fund of Egypt chief executive  Ayman Soliman, East Port-Said Development Company managing director Dr Ahmed Fikry and VWSA’s Biene in the presence of Egyptian Prime Minister Dr Mostafa Madbouly at the headquarters of the council of ministers in the new administrative capital.

The signing ceremony was also witnessed by  planning and economic development minister Dr Hala Al-Saeed.

VWSA has been manufacturing vehicles in SA for more than 72 years and has three other vehicle assembly facilities in Sub-Saharan Africa — in Kenya, Rwanda and Ghana — with a presence in 17 countries in the region where it sells passenger and commercial vehicles.

HeraldLIVE


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