The strategy, led by the Ministry of Communications and Information Technology (MCIT) under the "Egypt Makes Electronics" initiative, aims to attract global investment and boost manufacturing capacity.
Recognizing industry as the engine of sustainable
development, the government has implemented robust local manufacturing policies
backed by a wide range of incentives. This strategy has successfully attracted
international companies to set up mobile phone production in Egypt, an
achievement that has garnered international acclaim.
International analysis reinforces Egypt's efforts.
Fitch Solutions forecasts strong growth for Egypt's mobile
market through 2031, citing expanded local assembly and supportive government
policies that reinforce Egypt's role as a regional export hub. Fitch added that
major brand partnerships and new smartphone factories have boosted confidence
in the country as a manufacturing base for Africa and the Middle East.
Euromonitor affirmed that Egypt is poised to become a
leading Middle East smartphone manufacturing center, noting intensive efforts
to raise the percentage of local components rather than focusing only on
assembly.
Business Insider Africa attributed significant market growth
to favorable government policies, including tax exemptions and improved
infrastructure.
Key government incentives attracting major brands include: Adding
phone manufacturing to the Export Burden Refund Program.
Exempting components used in manufacturing from National
Telecom Regulatory Authority (NTRA) fees.
Unifying customs tariffs on specific production supplies to
2% (down from 10%).
Granting an exemption from a Ministry of Finance development
fee on parts and locally manufactured phones, provided they achieve a minimum
of 40% local added value/export share.
Additionally, following the 2016 launch of the "Egypt
Makes Electronics" initiative, a new phone governance system will be
launched in January 2025 via the "Telephony" application to combat
illegal trade and support localization.
These policies have dramatically increased export values for
mobile devices and components, which surged 92-fold to reach $12 million in
2024, up from $0.129 million in 2019.
The state has successfully attracted 15 international brands,
resulting in a total production capacity of 20 million units annually and
approximately $200 million in investments.
Major international brands operating in the country include:
Samsung Electronics: Total investment of $700 million, with
$85 million injected between 2022 and 2024 for mobile/tablet production.
Capacity is 6 million units annually (including mobiles, tablets, and TVs).
Oppo: A $50 million investment plan covering 17 production
lines, with an annual capacity of 5 million units (Oppo and Realme brands).
Xiaomi: Production lines with Elsafy Industrial Group,
representing a $30 million investment and 3 million units in annual capacity.
Vivo: A $20 million investment with an annual capacity of 2
million units. The company has begun exporting to North African nations.
Nokia/Infinix: A production line launched in cooperation with SICO company, involving a $20 million investment and an annual capacity of 2.5 million units.