Egyptian Minister of Planning and Economic Development, Dr. Ahmed Rustom, participated in the African Automotive Sector Investment Forum, held as part of the first edition of the El Alamein - Africa 2026 forum. The event saw high-level government participation, including Foreign Minister Dr. Bader Abdelatty, Investment and Foreign Trade Minister Dr. Mohamed Fared, and Industry Minister Engineer Khaled Hashem. Around 1500 business leaders and African investors attended the forum, which was co-organized with the African Export-Import Bank (Afreximbank).
During the session, Dr. Rustom presented positive indicators for the industry sector, revealing that the improvement in production sector performance had a direct impact on strategic industries. The automotive industry recorded exceptional growth, jumping by around 50% during the first quarter of 2025/2026. This growth is part of a strong and comprehensive expansion in non-oil manufacturing industries, reflecting the positive and rapid impact of structural reforms in supporting the production base.
Dr. Rustom emphasized that this growth comes within the framework of creating an attractive investment environment in the automotive sector, capable of meeting local needs and accessing African markets. On a macroeconomic level, the minister stated that the growth path is showing tangible improvement, with the GDP growth rate rising to 5.1% during 2025/2026, compared to 4.4% in the previous year.
The minister attributed this recovery to the strong performance of production sectors, including industry, communications, and trade, which collectively contributed around 48% to the total growth achieved. He credited this performance to the strict commitment to implementing the Economic Reform Program, which focuses on enhancing competitiveness, expanding the private sector's role in the economy, and directing support to sectors with high value-added and export capabilities.
Dr. Rustom highlighted the government's integrated efforts, noting the launch of a wide-ranging program of structural and institutional reforms by the Ministry of Investment and Foreign Trade. The program aims to update legislative and regulatory frameworks to improve the business climate, enhance the quality of foreign direct investments, and achieve the desired integration between public and private investments.
The growth of Egypt's automotive industry and the overall economy is seen as a positive step towards achieving the country's development goals. The government's efforts to create a favorable business environment and implement economic reforms are expected to continue driving growth in the sector.
Egypt aims to become a regional hub for the automotive industry in Africa, with the government working to enhance the country's competitive advantages and attract foreign investment. The country's strategic location and large market make it an attractive destination for investors looking to expand their operations in the region.
Key points
- Egypt's automotive industry grew by 50% in the first quarter of 2025/2026.
- The country's economy expanded by 5.1% during 2025/2026, driven by strong performance in production sectors.
- The government has implemented economic reforms and launched initiatives to enhance the business climate and attract foreign investment.
