The Madbouly government is weighing new customs incentives for Egyptians abroad to ease backlash against its crackdown on mobile phone exemptions — but rolling back the policy itself is “off the table,” three senior government officials tell EnterpriseAM.

So, what *might* be on the table? Proposals include allowing expats with permanent residency abroad to bring in one additional phone annually for work purposes. To soften the 38.8% duty hit, officials are also exploring airport-based installment plans for customs fees. That could open up a new sales channel for consumer finance platforms and e-wallets.

Why the hard line? The government says the stricter controls are essential to choke off a smuggling channel that has cost the state dearly. Our sources tell us that nearly USD 1.3 bn worth of phones entered the country outside official channels in 2025. The result? Customs revenue on legitimately imported handsets clocked in at just USD 210 mn last year. “This prompted a study on imposing full protection to allow local manufacturers to scale up their investments and deepen the industry,” one of the sources said.

SMART POLICY- The policy angle doesn’t end there — officials are pushing to localize handset assembly. Fifteen global brands now produce phones locally, including Samsung, Oppo, and Xiaomi, with output hitting 20 mn units in 2025. Officials see export channels growing substantially this year.

BACKGROUND- The personal import exemption expired earlier this month, and officials are now planning to block the activation of handsets whose IMEI (think: “serial number for your phone”) isn’t registered in a new database maintained by the National Telecommunications Regulatory Authority.

So, how does it work now? Expats home for a visit can call a state-run short number to claim a 90-day exemption from customs duties if they want to use a phone bought abroad with a local SIM. Expats and tourists alike can use their foreign SIM in a handset purchased outside of Egypt without triggering taxes and customs. Tourists can also purchase an approved tourism line and use that SIM in their foreign handset.

What’s next? A final decision on any sweeteners is pending financial and tax impact studies, we’re told.

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