Egypt eyes Toyota-backed automotive localisation to boost exports

Egypt is stepping up efforts to localise automotive manufacturing and expand high value-added industries as part of a wider economic strategy aimed at increasing exports, attracting foreign investment and strengthening the country's industrial base. The renewed focus emerged during separate engagements involving Egypt’s Minister of Foreign Affairs, International Cooperation and Egyptian Expatriates Badr Abdelatty and Minister of Investment and Foreign Trade Mohamed Farid, both of whom highlighted manufacturing, exports and industrial development as key pillars of Egypt's economic agenda.

During a meeting in Tokyo with the president of Japan's Toyota Tsusho Group, Abdelatty described automotive manufacturing localisation as a government priority and outlined incentives introduced to support the sector. The discussions focused on expanding economic and investment cooperation between Egypt and the Japanese conglomerate, which the minister described as a strategic partner across several sectors of the Egyptian economy. Abdelatty said Egypt is seeking to deepen cooperation with Toyota Tsusho and other Japanese companies to support the development of the country's automotive industry, attract manufacturing investments and facilitate the transfer of technology and industrial expertise.

He also reiterated Egypt's interest in establishing a Japanese industrial zone within the Suez Canal Economic Zone (SCZONE), highlighting the zone's competitive advantages and strategic location for manufacturing and export-oriented businesses. The minister expressed hope for stronger collaboration with Toyota Motor Corporation in vehicle assembly, automotive components manufacturing and the development of regional supply chains based in Egypt. Abdelatty also reviewed recent economic reforms undertaken by the government, saying the measures have improved Egypt's competitiveness, supported the green transition and enhanced the country's attractiveness to foreign investors.

Separately, speaking during a high-level ministerial dialogue held alongside the "Egypt's Future: Investment Opportunities and Sustainable Economic Reform" conference in London, Investment and Foreign Trade Minister Mohamed Farid emphasised the importance of localising high value-added industries to drive export growth.

Farid said Egypt's ambition to increase merchandise exports to $100 billion would require expanding local manufacturing capabilities, deepening industrial production and identifying priority sectors capable of generating higher-value exports. He noted that export growth depends on more than industrial output alone, requiring an integrated ecosystem that includes logistics services, banking, financing and digital transformation. The minister added that the government has identified a range of export and investment opportunities across international markets, particularly in Eastern Europe, while working with relevant authorities to address operational challenges related to banking services and fund transfers.

Farid also highlighted ongoing efforts to improve the business environment by simplifying procedures related to company establishment, capital increases and share issuance. According to the minister, the government is addressing delays caused by multiple approval processes through greater electronic integration and the modernisation of institutional workflows. He further revealed plans to launch a unified digital platform for investment opportunities and land allocation, enabling investors to access available projects through a single portal. Farid said the long-term objective is to create an investment environment where businesses can operate efficiently without requiring direct intervention from ministers or government officials to resolve administrative issues.

The initiatives form part of Egypt's broader strategy to strengthen the role of the private sector, expand industrial capacity, improve export competitiveness and attract new domestic and foreign investment into key sectors of the economy.