3 phone factories in a year..will Egypt turn into a regional center for the manufacture of mobiles

03:41 PM

Thursday 15 September 2022

Books – Alaa Hajjaj
Mobile phone companies began to change their vision of the Egyptian market from a consumer market to a manufacturing center and an export base. During the current year, it was announced that 3 mobile factories for international brands will be established, as well as the Samsung tablet factory that was announced last year.

4 years have passed since the first phone engraved with “Made in Egypt”, which was produced by the Egyptian company SICO in 2018, but it seems that the Egyptian consumer will have many smart devices engraved with “Made in Egypt” during the coming period.

And mobile phone sales in Egypt recorded more than 15 million phones in 2021, according to the research institution GFK, compared to 13.3 million phones in 2020.
The value of Egypt’s imports of mobile phones declined by 50.7%, to reach $299.1 million during the first 4 months of this year, compared to $607 million in the comparable period of the previous year.
And during about 3 months of this year (July, August and September), three international brands announced their intention to manufacture their products locally in Egypt, starting with the Chinese company Vivo, one of the Chinese BBK group companies, which inaugurated its factory on an area of ​​11,000 square meters on the tenth of Ramadan With investments of $20 million, increasing to about $30 million within a year, and a production capacity of nearly 2 million phones.
In August, EAI announced its agreement with HMD, owner of the antique brand “Nokia”, to manufacture about one million phones annually in the Egyptian market.

Sources close to the factory located in the Sixth of October City said that the company plans to manufacture devices from other brands during the coming period, especially that the factory’s production capacity reaches 2 million phones annually, and the company plans to increase it to 10 million phones in the coming years.

The source added that the company plans to cover the Egyptian market during the first year of operating the factory, while exporting its products to neighboring markets, especially to African countries, starting from the second year of operation.

According to the sources, the first devices produced from the factory are engraved with the slogan “Made in Egypt” by the end of this month or next month at the latest.

In September, a few days ago, the Chinese company OPPO, which is also a subsidiary of the Chinese BBK Group, announced its intention to establish a mobile factory in Egypt with investments of $30 million and a production capacity of 4.5 million phones annually. Thus, the company’s factory in Egypt is one of 10 The company’s factories around the world.

According to a post by the Minister of Communications, Dr. Amr Talaat on his official Facebook page, the company intends to make its factory in Egypt a regional hub for manufacturing and exporting to Arab and African markets.

The company will start actual production through the factory next year, providing about 900 direct jobs.

According to a source in the company, the location of the new factory will be chosen this month, and the company is now choosing between more than one site in the industrial areas, including the Tenth of Ramadan City.

It is noteworthy that the Chinese company Infinix manufactures phones of the SMART and HOT series on the company’s production lines at the Seiko factory in Assiut, which represents about 80% of Infinix sales in the Egyptian market.

Samsung also established a factory for tablet computers in its industrial complex in Beni Suef, with investments estimated at 500 million pounds.

A number of other companies are also studying the manufacture of their smart devices in Egypt, led by Realme, a subsidiary of the Chinese BBK Group.

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