No clear road after EgyptSat Auto golden license: Egyptian automotive company EgyptSat Auto successfully obtained the golden license late last month to produce two models of locally made electric vehicles. Although some parts of the experience were smooth sailing, others brought hiccups to the company’s production plans, EgyptSat Auto board Chairman Mohamed Elghamry tells Enterprise.

REFRESHER- What are golden licenses? Introduced in the Investment Act of 2017, goldenlicenses create a streamlined process to set up new industrial and infrastructure projects that fit a certain list of requirements and criteria. Rather than exempting investors from the necessary approvals, the acquisition of the license serves as a one-stop shop for all necessary approvals to move forward with a project. The Madbouly government made it easier in December for industry to receive the licenses by scrapping a minimum issued capital requirement and allowing companies to apply for it online.

There are good parts of the experience: Elghamry had good things to say about the attention given to the processing of golden licenses, including that the importance of the licenses was highlighted both at a meeting he had with Prime Minister Mostafa Madbouly, as well as at his arrival at the General Authority for Investment and Freezones (GAFI). The government also delivered on their promise to process his license in a short time period, he told Enterprise.

Egypt ♥️ EV: The ease with which EgyptSat Auto obtained the golden license is no surprise: Last year, Madbouly launched a national strategy that backs the electric vehicle industry. The Egyptian Automotive Industry Development Program (AIDP) encourages EV localization with the aim of enhancing the country’s existing assembly and manufacturing capabilities and to encourage new investment into the sector.

But there are some drawbacks in the production process: There is an absence of clear standards for the manufacturing of small cars, Elghamry argues. EgyptSat Auto plans to produce e-vehicles as an alternative to tuktuks, while other local car manufacturers are looking into a similar type of model.

Incompatible manufacturing standards: While the tuktuk alternative is a choice of model that takes into account the socio-economic conditions in Egypt, the specifications provided by the Egyptian Standards and Quality Authority were a translation of specifications set for Europe, Elghamry tells us. Many of these specifications are not compatible with the infrastructure or the industrial environment in Egypt, such as the weight of the vehicle and its exterior design, he argues.

The uncertainty could lead to scheduling setbacks: If the questions around standards and specifications within the Egyptian context are not answered soon, Elghamry warns that production will likely face delays. He added that his company had submitted urgent memos to the Industry Minister, and that he had requested an urgent meeting with the prime minister in hopes of ironing out these uncertainties.

On EgyptSat Auto’s horizon: The company plans to invest EGP 300 mn to produce two electric vehicle models, with plans to produce a total of 5k units per month at its Tenth of Ramadan factory. The vehicles will include a 60% local component quota, according to Elghamry.

The specs: The first of the two models will reach speeds of up to 60 km per hour and cover 100 km per charge, while the second, which is intended for urban environments, is set to reach speeds of up to 80 km per hour and cover 200 km per charge. The cars’ prices are set to range from EGP 150k to 190k, depending on its specifications.

Setting sights overseas: The company’s goal is to direct part of its production for export, Elghamry also told Enterprise. While the first six months of production will focus on responding to demand in the local market, he says that export orders from the region make for twice the needs of the local market.

Your top industrial development stories for the week:

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