The Egyptian Prime Minister, Mostafa Madbouly, directed the necessary coordination between the relevant ministries and the banking sector in order to put in place a mechanism for the orderly release of car shipments coming from abroad in the coming period.
The Egyptian Prime Minister’s directives came during a meeting with representatives of car companies, major banks and others, to discuss ways to address the supply restrictions imposed on the industry, after the new import rules created great challenges for car dealers to transport shipments through ports.
Madbouly said, “The state is keen to balance the urgent need to meet basic needs, from food and petroleum materials from abroad, and between maintaining the market movement and facilitating the work of various companies, including car companies and agents, despite the difficult and unfavorable global economic conditions.”
During the meeting, the Minister of Trade and Industry in the Egyptian government, Nevin Gamea, revealed that new measures were taken to speed up the release of imported cars over the past period.
On the other hand, the representatives of the car companies thanked the government, the Central Bank and the banking sector for the efforts made to facilitate their activities, and stressed their understanding of “the exceptional circumstances the world is going through, and that this situation is temporary and imposed by the unprecedented current events.”
And some foreign car manufacturers, during the last month, stopped their exports to Egypt due to the import controls announced by the government to confront the global crisis, which made local dealers unable to buy cars.
And there were about 29,000 cars stuck in the ports awaiting customs release.
This followed the imposition of new import rules in March, which obligate importers to use documentary credits to import goods, rather than previously established collection documents.
It is noteworthy that passenger car sales declined for the second month in a row during last April, with a decrease of 20% compared to the same month last year, according to data from the Egyptian Automotive Market Information Council (AMIC), which covers the sales of a group of companies in the market.
The decline came as a result of import restrictions, high inflation, a shortage of components, and the depreciation of the pound against the dollar after the extraordinary meeting of the Monetary Policy Committee of the Central Bank of Egypt on March 19, when it was decided to raise interest rates and reduce the value of the Egyptian currency against the US dollar.