Last Updated on November 13, 2023 by newseditor
In a significant move that redefines the electronics market, Samsung company, the globe’s leading memory chips and mobile manufacturer, has committed to establishing a new mobile phone production facility in Egypt. This strategic decision aligns with Egypt’s efforts to attract investment for economic bolstering. It is anticipated to stimulate the local economy by creating numerous job opportunities.
The construction of this plant, slated to be situated in the Beni Suef governorate to the south of Cairo, is anticipated to kick off in the final quarter of 2023. As the world watches, this development underscores the growing influence of mobile manufacturing on shaping the electronics industry’s future. This blog delves into the details of this exciting development and its potential impact on both the local and global stages.
Samsung’s New Mobile Manufacturing Plant: A Boost for Job Creation and Local Economy
The facility, set to roll out cutting-edge mobile devices, is projected to generate around 1,400 jobs, both directly and indirectly, within the nation, particularly in Upper Egypt. Egypt has emerged as a favored locale for numerous prominent firms engaged in electronics design and production. These enterprises choose Egypt as their manufacturing base to cater to the domestic market and export to neighboring markets. The financial commitment from the South Korean firm is a response to Egypt’s recent introduction of a series of legislative and economic changes aimed at encouraging involvement from the private sector, a move that has positioned Egypt as the third-largest economy in the Arab world.
IMF Funding and Egypt’s Private Sector
Enhancing the influence of the private sector and diminishing the presence of state-run corporations in Egypt’s economy were pivotal stipulations for the International Monetary Fund’s approval of an additional $3 billion funding round for Egypt earlier this year. Samsung’s recent agreement forms a crucial part of the CIT Ministry’s ‘Egypt Makes Electronics’ presidential campaign, which is designed to boost the nation’s electronics exports and spur job creation for engineers, researchers, and technicians. The initiative seeks to draw in investors to produce ‘high-return electronic products with rapid paybacks’, such as mobile phones, tablets, GPS tracking devices, LED lighting, smart meters, LED TVs and displays, and solar energy systems, as per information on the ministry’s website.
Supporting Start-ups and Small Businesses
The initiative provides a variety of benefits for corporations, including tax reductions, land price concessions, and access to educational and research establishments. Furthermore, it assists fledgling enterprises and small businesses via its nurturing and speed-up schemes. The inauguration of the upcoming Samsung production facility in Beni Suef marks an ongoing successful collaboration with Samsung, a partnership that has previously led to educational tablet production in Egypt. The Egyptian government is implementing fresh incentives and strategies for investors, while also supplying a workforce of highly trained professionals in the auxiliary sectors of the electronics industry.