Minister of Industry Meets 11 German Firms, Unveils AIDP Incentives to Boost Local Content

Egypt's Minister of Industry, Khaled Hashem, held a roundtable with representatives of 11 German companies across various industrial sectors, led by Mercedes and Leonie Egypt, a specialist in automotive wiring harnesses. The talks focused on expanding German investments in the Egyptian market, with emphasis on localizing car manufacturing and components. The meeting was attended by Jürgen Schulz, Germany's ambassador to Egypt. Mostafa El-Bagouri, head of the German-Arab Chamber of Industry and Commerce. The message is loud and clear.

What Mercedes and Leonie Stand to Gain from AIDP

The minister confirmed that the Automotive Industry Development Program (AIDP) is a central pillar for attracting global carmakers and expanding local production, through incentives linked to higher local content and deeper localization of feeder industries and supply chains. He explained that benefits increase as companies rely more on locally manufactured components, supporting an integrated industrial base for both conventional and electric vehicles. The numbers speak.

Egypt has recently seen new investments in automotive-related sectors, including tires, EV batteries and production lines. These moves come as the government seeks to attract more global players and reduce reliance on imports. Mercedes and Leonie aren't alone.

Supplier Development and the New 'Qeema' Certificate

The Ministry of Industry is also running a program to develop local suppliers, aiming to boost their capabilities and prepare them to work with global automakers and integrate into international supply chains. The ministry is preparing to introduce a 'Qeema' certificate to assess industrial facilities and link incentives to higher local content, deeper manufacturing, supplier development. Investment in technology, R&D and workforce training. This matters especially for Mercedes and Leonie.

Leonie Egypt specializes in automotive wiring harnesses, a critical component in modern vehicles. Expanding its operations means more jobs and technology transfer. The ministry is betting on such partnerships to deepen local manufacturing. But is that enough to attract new investment?