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Over the years, the smartphone industry has taken some turns reflecting the dynamic nature of the Egyptian economy. With a population exceeding 150 million, including young and tech-savvy, this industry has had endless opportunities to skyrocket, and it certainly. By taking a look around, we can see that many tech and smartphone giants have decided to have a role in the tech boom in Egypt, this includes Oppo, Samsung, Vivo, and many more. This bold market penetration has fueled competition with more pros than cons. Bringing top-tier electronic brands to manufacture smartphones in Egypt will have many positive effects on the country.
Strategic Location and Infrastructure Advantages
Egypt’s geographic position as a bridge between Africa, Asia, and Europe offers unique logistical advantages that are critical for the supply chains of high-tech industries. The development of the Suez Canal Economic Zone has further bolstered this advantage, providing manufacturers with efficient access to global shipping routes, reducing time and costs associated with the transportation of raw materials and finished products.
Moreover, the country has invested heavily in upgrading its technological infrastructure. This includes enhancing its broadband capabilities and electrical grid to support the energy-intensive needs of high-tech manufacturing facilities. Such improvements not only attract foreign investment but also ensure sustained operations in industrial activities.
Localizing Industries in Egypt: Economic and Social Benefits
Bringing global manufacturers to your country has multiple and impactful results. The Egyptian government aims to localize industries to meet domestic demand, reduce imports, and increase exports to USD 146 billion by 2030. Increasing exports will have a very strong impact on the country’s economy. The economy is the backbone of all countries, which is why solving economic issues is important for stability and prosperity. Localizing industries is important for all Egyptian citizens because it will reduce the product’s prices and it will give new opportunities for many people.
This is a very smart move from the Egyptian government. As stated by Mostafa Madbouly, the Prime Minister of Egypt, “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.”
Global Tech Giants Boost Egypt’s Manufacturing Sector: Samsung, Xiaomi, OPPO, and Nokia Lead the Way
Samsung’s factory in Beni Suef is the first Samsung factory in the Middle East and Africa region. It has a capacity of six million units annually and 1,400 job opportunities. Since 2013, the factory has invested over USD 700 million. “Samsung Electronics’ factory complex in Beni Suef, Egypt, is the company’s first in the Middle East and Africa, and one of only 14 factories worldwide,” according to Jun Su Jung, the Chairman of Samsung in Egypt.
Xiaomi’s first factory in the Middle East and Africa is located at the 6th of October City manufactures one million smartphones and 300,000 TV screens each year, with 45% of the production locally sourced, backed by an initial USD 20 million investment.
OPPO’s factory, also in Beni Suef, is producing 4.5 million units a year, offering 650 jobs, and invested USD 30 million into the project.
Nokia phones are being manufactured by HMD Global in collaboration with SICO Electronics in New Assiut City, with 43% of the components sourced locally.
Egypt’s Mobile Market: Local Manufacturing to Reduce Imports and Boost Exports
The mobile phone market in Egypt is huge. Can you believe that the country imports USD 1.5 billion worth of mobile phones annually, according to Amr Mahfouz, former Head of the Information Technology Industry Development Authority (ITIDA)? Well, that is a very large number, so localizing global smartphone brands will help our country focus more on exporting rather than importing. Many job opportunities will be waiting for many citizens, and this will allow Egyptians to learn new methods and get exposed to new technologies that these global brands use when manufacturing their smartphones. This will affect the learning curve of Egyptian citizens and will encourage many people to find opportunities at these factories.
The ”Made in Egypt” initiative is not only creating more jobs but also attracting foreign investors. When other global electronic and smartphone brands see that the Egyptian market is flourishing and becoming stronger, they will be encouraged to come to Egypt and start manufacturing there. Global brands will gradually come to Egypt over time, which is why it is important to focus on enhancing the country’s relationship with global brands.
Apple is one of the largest global electronic brands in the world. Its products are used by billions of people. Many Egyptians use Apple products ranging from iPhones to MacBooks. Apple will be a strong key player in the Egyptian market, and hopefully, they come to Egypt soon.
