Madbouly gov’t wants to start exporting smartphones next year

Domestic handset assemblers and manufacturers are back in the spotlight after National Telecommunications Regulatory Authority (NTRA) Vice President Amr Abbas testified before the House of Representatives’ Communications Committee.

Abbas was before the microphones after MPs complained about what some called the “unjustified” rise in the retail price of handsets in Egypt. Rep. Maha Abdel Nasser said mobiles are “no longer luxuries,” noting they’re essential for digital services. She’s calling for a review of customs policies that she says are pushing up costs for consumers. Rep. Mirna Aref called for fresh support for smartphone assemblers and manufacturers here, saying the industry could be a source of export proceeds.

We have about 8 mn units per year of unused assembly and manufacturing capacity, it seems. Abbas told MPs that local manufacturers produced c. 10 mn handsets last year, short of the 18 mn unit capacity NTRA thinks is in place. Domestic demand also stands at about 18 mn handsets a year, he said.

The Madbouly government wants to see exports start by next year, Abbas told MPs, and thinks local production could satisfy as much as 90% of demand here at home.

Why it matters: The cabinet wants to slash our tech import bill and force the market to buy local. This production push serves as a direct complement to the government’s recent decision to scrap the personal customs exemption on imported mobile phones.

Local manufacturers argue that to truly lower retail prices and scale up, the government needs to ease regulatory friction. The industry’s success must be measured by value added, while lawmakers are pressuring the Customs Authority to eliminate the 2-5% tariff on production inputs to make the local sector viable, Egyptian Silicon Industries Company Chairman and CEO Mohamed Salem says.