Egypt is on a mission to become a leading smartphone manufacturing hub, partnering with tech giants such as Samsung, Oppo, Xiaomi, Vivo, and Nokia. According to Arab Finance for Information Technology, the government is also eyeing Apple to establish local iPhone production, strengthening Egypt’s position in regional manufacturing.
“The country’s support for localizing industries is part of its efforts to meet domestic demands, reduce the import bill, and increase exports to more than USD 146 billion (EGP 6.83 trillion) by 2030,” said Egyptian Prime Minister Mostafa Madbouly earlier this month.
Global Tech Presence in Egypt
Samsung, Oppo, Xiaomi, and Vivo have established factories across several industrial areas in Egypt, with more than 50 percent of industrial sources being local.
- Samsung: Located in Beni Suef, the factory spans 6,000 square meters, providing 1,400 job opportunities. With a production capacity of six million units annually, the factory produces a range of products from televisions to mobile phones and tablets. Since its establishment in 2013, the total investment in the factory has exceeded USD 700 million (EGP 32.7 billion).
- Oppo: Also in Beni Suef, Oppo’s factory has a production capacity of 4.5 million units annually, offering 650 job opportunities with an investment of approximately USD 30 million (EGP 1.4 billion).
- Xiaomi: Located in the 6th of October City, Xiaomi’s first factory in the Middle East and Africa spans 25,000 square meters with an initial investment of USD 20 million (EGP 936.4 million). It produces one million smartphones and 300,000 TV screens annually, with a local component of 45 percent.
- Nokia: HMD Global, the manufacturer of Nokia phones, is cooperating with Egyptian company SICO Electronics Co. to manufacture in their factory at the technology park in New Assiut City, which spans 5,000 square meters. The local component in Nokia phones manufactured at the SICO factory will reach 43 percent.
“Made in Egypt” Initiative
Under the slogan “Made in Egypt,” partnerships with global companies are creating job opportunities and attracting foreign investors. Amr Mahfouz, former Head of the Information Technology Industry Development Authority (ITIDA), reported that Egypt imports mobile phones worth USD 1.5 billion (EGP 70.23 billion) annually. Local manufacturing aims to export surplus products abroad, leveraging Egypt’s free trade agreements with African and European countries.
Potential Apple Partnership
The Egyptian government is actively working to attract Apple to manufacture its phones locally. Mohamed Salem, Chairman of SICO Electronics Co., stated, “Egypt is capable of hosting Apple factories as it possesses the required infrastructure and technological means.” Hosting Apple in Egypt would create employment opportunities, facilitate technology transfer, and boost exports.
Attracting global companies to Egypt is a significant step towards creating high local value-added goods and facilitating an environment for foreign investment, as reported by Prime Minister Madbouly.
