Egypt Ready to Partner with African Nations on Joint Auto Manufacturing Projects
Egypt's Minister of Investment and Foreign Trade, Mohamed Farid Saleh, announced at the Africa Automotive Investment Forum in El Alamein that Egypt is ready to cooperate with African nations on joint manufacturing projects. Africa currently produces 1.2 million vehicles annually and aims to reach 5 million by 2035. The agreement includes a 40% minimum local content rule, with $1 billion in funding from Afreximbank. The minister also called for expanding EV manufacturing and linking industrial zones with logistics corridors.
Cairo is opening the door to joint African car manufacturing. Egypt's Minister of Investment and Foreign Trade, Mohamed Farid Saleh, announced at the Africa Automotive Investment Forum in El Alamein that Egypt is ready to cooperate with African nations on joint manufacturing projects. The number speaks for itself.
Africa Produces 1.2 Million Vehicles, Targets 5 Million by 2035
The gap is massive. Africa currently produces 1.2 million vehicles per year, and that figure is expected to climb to between 3.5 and 5 million by 2035, according to the minister. The forum aims to turn the continent's automotive industry potential and the African free trade zone markets into real investments, projects, and supply chains.
40% Local Content Rule Deepens Manufacturing
The rule matters. Agreement on rules of origin with a minimum 40% African content requirement deepens auto component manufacturing and boosts reliance on local raw materials and parts. The forum brought together the African Continental Free Trade Area, the Southern African Customs Union (SACU), and the African Association of Automotive Manufacturers (AAAM), alongside AAAM president Tarek Masoud.
Is the money there? The Afreximbank has provided $1 billion to finance Africa's auto industry. The minister called for immediate on-the-ground investment, supplier development, production chain upgrades, customs readiness for new changes, and policies linking investments to funding sources.
Unified Industrial Map and Logistics Corridors
Integration is non-negotiable. The minister urged creating a map of each country's industrial and technical capabilities, linking them together with demand and investment opportunities, and closing gaps in production chains. He also called for connecting industrial zones with logistics corridors to ease the transport of auto components between African nations.
The EV transition is on the table. He stressed the need to expand electric vehicle and new energy vehicle manufacturing, requiring an integrated system for vehicle and battery production and charging platforms. He also pushed for unified testing standards across countries to facilitate trade.
Egypt is extending its hand. The minister confirmed Egypt's readiness to cooperate with Afreximbank and AAAM to support regional production hubs and develop joint projects. The goal is clear: transform the continent from a consumer market into a real manufacturing base.
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