The initiative also aims to boost Egypt’s auto industry, requiring the natural gas-run cars to be assembled in Egypt
Egypt spent around EGP 37.3 million as part of its initiative for replacing older model vehicles with newer natural gas-running models in a bid to reduce the country’s carbon footprint.
According to Minister of Finance Mohamed Maait, the initiative has replaced 3,000 cars so far, with the exchanges beginning in July, with another 1,700 natural gas-run cars expected to be delivered in August.
The 37.3 million was disbursed in April, the ministry added, stating that they continue to work towards accelerating the pace of work in coordination with various concerned authorities.
Egypt begun accepting submissions for requests to replace aging vehicles with newer models in July, with Cairo, Giza, Qalyubia, Alexandria, Suez, Port Said, and Red Sea areas part of the first phase.
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The initiative is part of the government efforts to accelerate Egypt’s green transformation and rely more on clean energy.
Initiative CEO, Amgad Mounir, stated that 3,472 old cars were scrapped, adding that the initiative received 217 requests from old minibus owners to obtain new cars that run on natural gas in the governorates where the first phase of the initiative was implemented.
The initiative also aims to boost Egypt’s automotive industry, requiring the natural gas-run cars to be assembled in Egypt with at least 45% of their components manufactured locally.
The Ministry of Finance, through its Fund to Finance the Purchase of Certain Express Transportation Vehicles, manages the mechanism of the presidential initiative and its electronic platform.
The automotive market saw a 61% growth in the first 5 months of 2021, with sales of around sales of around 81,900 units.
