“We aim to manufacture 100 million mobile phones annually, with 25% of production covering local demand and the remaining 75% designated for export, while providing incentives to encourage this promising industry,” stated Dr. Mostafa Madbouly, the Egyptian Prime Minister.
Dr. Mostafa Madbouly stated that Egypt's annual demand for mobile devices is around 20 million, while local factories currently produce over 11 million. Ongoing projects are expected to boost this to 17 million annually. He emphasized the need for a plan to increase production to over 100 million devices per year by partnering with international manufacturers. Madbouly noted that Egypt now hosts factories for four of the world’s top five mobile phone manufacturers and highlighted the government's efforts to double their production, with 25% of output meeting local demand and the rest aimed at exports.
We had a call with Ashraf El Ghanam, Chief Investment and Investor Relations Officer at MM Group (MTIE), regarding the Prime Minister's recent remarks on the mobile market.
"We will certainly benefit from localizing mobile phone production in Egypt, as it ensures a continuous process of supply and sales," Ashraf stated. He highlighted that they have already experienced the advantages of local production through Samsung television manufacturing, which began in Egypt years ago and has since expanded to multiple markets.
MM Group, the largest distributor of Samsung Mobile in Egypt, has reaped benefits from Samsung's local mobile phone production over the past year, maintaining steady sales volumes. Ashraf also noted that Nokia started manufacturing Nokia phones in Egypt , with one of MM Group's sister companies, Kanawat Mobile, serving as a distributor for Nokia phones.
MM Group, which released its earnings yesterday, August 14, 2024, reported a significant surge in net profit, recording EGP 494 million compared to EGP 295 million, marking a +67.4% increase. Ashraf added that to sustain mobile phone sales volume after the recent devaluation of the USD/EGP, MM Group employed a new tactic by slightly reducing margins on mobile phones, resulting in a +50% year-on-year increase in mobile phone sales.
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