Egypt's Minister of Planning and Economic Development, Dr. Ahmed Rustom, revealed a significant surge in the automotive industry, with a 50% growth in the first quarter of the 2025/2026 fiscal year. This announcement was made during his participation 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 Dr. Badr Abdelatty, Minister of Foreign Affairs and International Cooperation, Dr. Mohamed Farid, Minister of Investment and Foreign Trade, and Engineer Khaled Hashem, Minister of Industry.
The growth in the automotive industry is part of a broader strong and comprehensive growth in non-oil manufacturing industries. This reflects the positive and rapid impact of structural reforms in supporting the productive base and creating an attractive investment environment in the automotive sector. The sector is expected to meet local needs and access African markets. The forum, organized in partnership with the African Export-Import Bank (Afreximbank), brought together around 1500 leaders from the business community and African investors.
On the macro level, Egypt's economic growth has shown a tangible improvement, with the GDP growth rate reaching 5.1% during the 2025/2026 fiscal year, compared to 4.4% in the previous year. This recovery is driven by the strong performance of productive sectors, including industry, communications, and trade, which collectively contributed around 48% to the total growth achieved. Dr. Rustom attributed this performance to the strict commitment to implementing the Economic Reform Program.
The Economic Reform Program 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. The program aims to transform Egypt into a regional hub for the automotive industry and exports in Africa. The government's efforts are centered on creating an attractive investment environment and promoting the growth of the private sector.
The Ministry of Investment and Foreign Trade has launched a comprehensive program of structural and institutional reforms aimed at updating legislative and regulatory frameworks to improve the business climate. The goal is to enhance the quality of foreign direct investments and achieve the desired integration between public and private investments. This initiative supports the vision of making Egypt a leading regional center for the automotive industry and exports in Africa.
The African Automotive Sector Investment Forum provided a platform for dialogue and cooperation among stakeholders, including government officials, investors, and industry experts. The forum discussed ways to promote investment in the African automotive sector, enhance competitiveness, and develop the industry's capabilities. The event highlighted the importance of cooperation and partnership in driving growth and development in the sector.
The Egyptian government's efforts to promote the growth of the automotive industry and enhance the business climate are expected to have a positive impact on the economy. The growth of the industry is anticipated to create new job opportunities, stimulate economic growth, and increase Egypt's exports. The government's commitment to implementing structural reforms and promoting investment is seen as a key driver of sustainable economic growth and development.
Key points
- Egypt's GDP growth rate reaches 5.1% in the 2025/2026 fiscal year.
- The automotive industry experiences a 50% growth in the first quarter of the 2025/2026 fiscal year.
- The Egyptian government launches a program of structural and institutional reforms to improve the business climate and promote investment.
