El-Semat: Localizing Electrical Industries Supports Egypt's Automotive Future

The message is clear. Dr. Mahmoud El-Semat, Minister of Electricity and Renewable Energy, confirmed that the state is pursuing a strategic plan aimed at localizing industry and transferring modern technology, with a special focus on enhancing industries linked to electrical components and equipment — a step that will support several industrial sectors, most notably the automotive industry, especially with the expansion of electric vehicles and smart manufacturing systems. The government is pushing for higher local content.

A New Factory in Egypt

Not just a ribbon-cutting. The minister made his remarks during the inauguration of Siemens' new factory for producing electrical components and automation solutions dedicated to industries and infrastructure. The event was attended by Minister of Industry Khaled Hashem and German Ambassador to Cairo Jürgen Schultz. El-Semat emphasized that the state is working to increase the percentage of local components in renewable energy projects, helping to build an industrial base capable of meeting domestic market needs and boosting Egyptian industry's competitiveness. The ceremony signaled a significant milestone.

Why It Matters for Cars

The connection runs deep. El-Semat explained that localizing electrical industries represents a fundamental pillar for supporting strategic sectors, including the automotive industry — which increasingly relies on electrical components and automation systems, whether for manufacturing traditional cars or electric vehicles, as well as developing the necessary infrastructure for smart charging networks. This energy-industry linkage strengthens integration across the board.

A Strategic Partner

A century of collaboration. The minister noted that Siemens is a strategic partner for Egypt, having operated in the local market for over 100 years. The company has contributed to numerous national projects in electricity, renewable energy, smart infrastructure, and digital transformation — including giant power plants, control centers, grid monitoring and operation systems, as well as energy management solutions and the shift from conventional to smart grids. The new factory carries export ambitions.

Export Ambitions

Big plans ahead. El-Semat affirmed that the new factory will initially focus on meeting Egyptian market demand for electrical equipment, components, and protection panels. But the second phase aims to export products to Middle Eastern and African markets — strengthening Egypt's position as a regional manufacturing and export hub. He also stressed that the Ministry of Electricity supports industrial partnerships based on modern technology transfer and localization, expanding local manufacturing of renewable energy equipment — a move that will develop industrial supply chains relied upon by vital sectors like the automotive industry, especially given the global shift toward electric vehicles and increased reliance on smart production systems. The state is moving forward.