According to a Cabinet statement on Sunday, the Egyptian state entities signed a $240 million investment agreement with German automaker Volkswagen to conduct a feasibility study for the East Port Said Automotive Zone (EPAZ).
The Sovereign Fund of Egypt (TSFE), the East Port Said Development Company (EPSD), and the Suez Canal Economic Zone (SCZONE) are the signatories from Egypt.
Parties to the agreement will work together to carry out a feasibility study for the EPAZ, which is anticipated to generate 6,100 jobs.
The agreement’s parties will work with the EPSD to choose qualified consultants to complete the study.
The EPSD is responsible for technical coordination with all parties to the agreement, while Volkswagen is in charge of implementing the Egyptian Automotive Industry Development Program (AIDP).
It’s worth mentioning that the Egyptian company Ezz El Sewedy Automotive Factories signed a framework agreement last Thursday with the General Authority for Investment and Free Zones (GAFI), the Ministry of Finance’s Environmentally Friendly Automotive Industry Finance Fund, and the Cabinet’s Automotive Industry Unit.
The agreement aims to manufacture 50,000 cars per year in Egypt with the Malaysian Proton logo.
The market has been experiencing unprecedented stagnation since March 2022, mostly as a result of a drop in imports and a lack of foreign exchange. Increasing domestic car production could also aid in stabilizing the domestic auto industry in the nation.
