Egypt needs to cancel dutyfree access for imported cars if it wants to encourage domestic car assembly and become a regional export hub, Nissan managing director for Africa Mike Whitfield told the Africa Report.
While fully assembled vehicles from the EU enter Egypt at zero customs, companies like Nissan have to pay duties on parts imported for local assembly which Whitfield suggests holds back the local industry.
Nissan positions itself as the only global vehicle manufacturer with a 100%-owned plant in Egypt, as opposed to most manufacturers, which grant licenses to (or partner with) local players
Nissan, which is starting vehicle assembly in Ghana, this month created a new regional business unit for Africa as it seeks expand into what Whitfield calls “the last frontier”. Sub-Saharan Africa, with 1 billion inhabitants, makes up just 1% of global new car sales. The company aims to increase localised production across African countries, he says.
Last year, Egypt eliminated tariffs on cars imported from the European Union, even as it seeks to develop its own automotive industry.
Mercedes-Benz signed a memorandum of understanding with the government in June 2019 to resume assembly operations. Production of Egypt’s first locally assembled electric car, by China’s Dongfeng Motor, is scheduled to start by the end of 2021.
