Egyptian Planning Minister Dr. Ahmed Rustom revealed that the country's automotive industry has seen a significant surge, with a 50% growth rate during the first quarter of the 2025/2026 fiscal year. This growth is part of a broader expansion in the manufacturing sector, which has been driven by structural reforms aimed at improving the business environment and attracting investment. The minister made these remarks during the African Automotive Investment Forum, held in Egypt.
The forum, which was attended by high-ranking government officials and around 1,500 business leaders and African investors, aimed to promote investment in the African automotive sector. Dr. Rustom highlighted the positive indicators for the industry, citing the growth in the automotive sector as a key example of the country's economic progress. He emphasized that this growth is part of a broader strategy to develop Egypt's manufacturing sector and increase its competitiveness.
According to Dr. Rustom, the Egyptian economy has seen a significant expansion, with a 5.1% growth rate during the 2025/2026 fiscal year, up from 4.4% in the previous year. This growth has been driven by a strong performance from the productive sectors, including industry, communications, and trade, which have contributed around 48% to the overall growth. The minister attributed this growth to the government's commitment to implementing economic reforms aimed at promoting competitiveness and private sector participation.
The Egyptian government has launched a comprehensive program of structural and institutional reforms aimed at improving the business environment and attracting foreign investment. These reforms have included updating the legislative and regulatory frameworks to improve the quality of foreign investment and promote integration between public and private sector investments. The government aims to turn Egypt into a regional hub for the automotive industry and exports in Africa.
Dr. Rustom emphasized that the growth in the automotive sector is part of a broader strategy to develop Egypt's manufacturing sector and increase its competitiveness. He highlighted the importance of creating a favorable investment climate and promoting partnerships between the public and private sectors. The minister also stressed the need for Egypt to develop a model of "joint innovation" with African countries to drive economic growth and development.
The African Automotive Investment Forum was organized in collaboration with the African Export-Import Bank (Afreximbank). The event provided a platform for business leaders and investors to discuss opportunities and challenges in the African automotive sector. Egyptian officials, including Foreign Minister Dr. Bader Abdelatty and Investment Minister Dr. Mohamed Fared, also participated in the forum.
The Egyptian government's efforts to promote investment in the automotive sector are part of a broader strategy to drive economic growth and development. The country's economic reforms have been aimed at promoting competitiveness, increasing private sector participation, and attracting foreign investment. The growth in the automotive sector is seen as a key indicator of Egypt's economic progress and its potential to become a major player in the African economy.
Key points
- Egypt's automotive industry experienced 50% growth during the first quarter of the 2025/2026 fiscal year.
- The country's economy expanded by 5.1% during the 2025/2026 fiscal year.
- The growth in the automotive sector is part of a broader strategy to develop Egypt's manufacturing sector and increase its competitiveness.
