{"id":581930,"date":"2023-03-01T00:00:00","date_gmt":"2023-03-01T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/03\/01\/egypts-burgeoning-smartphone-assembly-industry-just-got-a-boost\/"},"modified":"2023-03-01T00:00:00","modified_gmt":"2023-03-01T00:00:00","slug":"egypts-burgeoning-smartphone-assembly-industry-just-got-a-boost","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/03\/01\/egypts-burgeoning-smartphone-assembly-industry-just-got-a-boost\/","title":{"rendered":"Egypt\u2019s burgeoning smartphone assembly industry just got a boost"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:400;\"><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"\"><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"\"> <\/span><span style=\"font-weight:700\">MPs yesterday voted to slash customs duties and <\/span><span style=\"-webkit-text-decoration-skip:none;font-weight:700;text-decoration-skip-ink:none\"><a href=\"https:\/\/enterprise.press\/stories\/2023\/02\/09\/cabinet-scraps-5-development-fee-for-local-mobile-phone-assemblers-96069\/\" style=\"\">eliminate development fees<\/a><\/span><span style=\"font-weight:700\"> on <\/span><span style=\"font-weight:700\">imported mobile phone components<\/span><span style=\"font-weight:400;\"> in a bid to boost manufacturing and localize the industry. Under the amendments, the 5% state development fee will no longer be applied to components, while customs tariffs will be cut to as low as 0% for some items. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Components are currently subject to duties as high as 30%: <\/span><span style=\"\">The government currently has <\/span><span>a 30% customs duty in place on earphones, while a 5% duty is applied to batteries, chargers and mobile cameras, and 2% is levied on screens, <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/bit.ly\/3IB2iRz\" style=\"\">Asharq Business<\/a><\/span><span style=\"font-weight:400;\"> reported yesterday.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">2% is now the norm:<\/span><span style=\"\"> The tariffs applied to batteries, speakers, and cameras imported for <\/span><span style=\"font-weight:400;\">smartphone assembly will be cut to 2% under the amendments. Phone screens, which were already charged 2%, will be made exempt from customs.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700;\">The beneficiaries: Players in Egypt\u2019s burgeoning smartphone assembly industry. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Uh, wait, Enterprise? We assemble smartphones in Egypt? <\/span><span style=\"\">Heck yes, we do. Samsung <\/span><span style=\"\">started assembling TVs in Egypt and is now our top non-oil exporter. It assembles two models here. Homegrown Sisco Egypt is another pioneer of the industry, while Xiaomi is planning to <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/bit.ly\/3IERDFj\" style=\"\">establish a EGP 1 bn phone factory<\/a><\/span><span style=\"\"> in Egypt which could open in the second half of this year. Chinese manufacturers <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.press\/stories\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break-94361\/\" style=\"\">Oppo and Vivo<\/a><\/span><span style=\"font-weight:400;\"> have also said they are interested in the market. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">What they said:<\/span><span> <\/span><span style=\"font-weight:400;\">This \u201cserves the government\u2019s policy of localizing industries and reflects the current hard global economic conditions which pushed the state to reduce costs burdened by local industrial projects,\u201d deputy chairman of the House\u2019s Budget Committee Mostafa Salem said. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">NOKIA TO EXPORT EGYPT-MADE PHONES THIS YEAR-<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"\"> <\/span><span style=\"font-weight:700\">L<\/span><span style=\"font-weight:700\">ocally-assembled Nokia are heading overseas<\/span><span style=\"font-weight:700\">:<\/span><span style=\"\"> Nokia phone manufacturer HMD <\/span><span style=\"\">Global plans to export phones assembled in Egypt to North Africa this year, Tamer El Gamal (<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/www.linkedin.com\/in\/tamer-elgamal-069b873\/?originalSubdomain=eg\" style=\"\">LinkedIn<\/a><\/span><span style=\"\">), general manager at HMD Global, told Asharq Business (<\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"http:\/\/bit.ly\/41Blibp\" style=\"\">watch, runtime: 2:24<\/a><\/span><span style=\"font-weight:400;\">). Target markets could include Tunisia, Morocco and Algeria, he said on the sidelines of an industry conference in Barcelona.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">REMEMBER<\/span><span style=\"\">- Nokia phone manufacturer HMD Global signed an agreement with Etisal for Advanced Industries (EAI) <\/span><span style=\"text-decoration-skip-ink:none;-webkit-text-decoration-skip:none;\"><a href=\"https:\/\/enterprise.press\/stories\/2022\/08\/07\/nokia-will-assemble-phones-in-egypt-77311\/\" style=\"\">last year<\/a><\/span><span style=\"font-weight:400;\"> to assemble 1 mn mobile phones in Egypt, and its factory has been up and running since September. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">It could double its production capacity before the end of 1H 2023:<\/span><span style=\"\"> The company currently produces 4k phones every day, and could raise this to <\/span><span style=\"font-weight:400;\">8k by June, El Gamal said. <\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Climbing the value chain:<\/span><span style=\"\"> <\/span><span style=\"\">HMD Global has until now concentrated on producing 2G and 3G phones in Egypt. <\/span><span>That change next quarter: The company will begin assembling 4G phones in April, <\/span><span style=\"font-weight:400;\">El Gamal said. 5G phones could be introduced in 2024, he added.<\/span><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><span style=\"font-weight:700\">Customs decision to help offset currency problems:<\/span><span style=\"\"> <\/span><span style=\"\">El Gamal believes the move would help <\/span><span style=\"\">\u201cmake up the difference\u201d <\/span><span style=\"font-weight:400;\"> in USD exchange rates following the devaluation of the EGP, which has lost almost half its value over the past year. \u201cWe\u2019ll be able to provide our products to consumers at appropriate prices,\u201d he said of the decision. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs duties and development fees will be slashed on imported mobile phone components.<\/p>\n","protected":false},"author":1,"featured_media":581931,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7255],"tags":[72,2217,125,187,131,1702],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-581930","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing","tag-enterpriseam","tag-hmd-global","tag-investment-watch","tag-legislation-watch","tag-manufacturing","tag-nokia","wpautop","entry"],"acf":{"mongo_id":"c4f0f066-1b6d-48e7-83b2-67753e171afd","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/3\/mobile-phone-manufacturing-1600px.jpg","photo_position":"below","homepage_title":"","full_issue_title":"","related_issue":[581921],"teaser":"Customs duties and development fees will be slashed on imported mobile phone components."},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Egypt\u2019s burgeoning smartphone assembly industry just got a boost - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2023\/03\/01\/egypts-burgeoning-smartphone-assembly-industry-just-got-a-boost\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egypt\u2019s burgeoning smartphone assembly industry just got a boost\" \/>\n<meta property=\"og:description\" content=\"Customs duties and development fees will be slashed on imported mobile phone components.\" \/>\n<meta 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&quot;Tax&quot;","block_context":{"text":"Tax","link":"https:\/\/enterpriseam.com\/egypt\/category\/tax\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/6\/1382.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":569660,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/03\/03\/govt-considering-full-customs-exemption-on-imports-of-auto-components\/","url_meta":{"origin":581930,"position":2},"title":"Gov\u2019t considering full customs exemption on imports of auto components","author":"enterpriseam admin","date":"3 March 2020","format":false,"excerpt":"The government is considering a full customs exemption on imports of auto components: The Trade Ministry could grant a full customs exemption on imports of auto components as part of its strategy to incentivize local manufacturers, the local press reports, citing unnamed government sources. Nissan and Toyota requested earlier this\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/3\/41.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":547096,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/06\/08\/house-gives-final-nod-to-amended-customs-tariffs-in-bid-to-localize-industry\/","url_meta":{"origin":581930,"position":3},"title":"House gives final nod to amended customs tariffs in bid to localize industry","author":"enterpriseam admin","date":"8 June 2022","format":false,"excerpt":"House gives the nod to amended customs tariffs: The House of Representatives yesterday gave its final approval to a presidential decree amending customs duties on hundreds of imports.All part of the localization push: The changes in tariffs came to promote investment, boost exports, and protect local industries, according to Yasser\u2026","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/6\/194.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":579075,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/24\/local-mobile-manufacturers-could-soon-catch-a-tax-break\/","url_meta":{"origin":581930,"position":4},"title":"Local mobile manufacturers could soon catch a tax break","author":"enterpriseam admin","date":"24 January 2023","format":false,"excerpt":"Fresh tax incentives for local mobile phone assemblers? The Finance Ministry is considering cutting a 5% development fee on imported mobile phone parts as the Madbouly government pushes to localize electronicsassembly, a source at the ministry tells Enterprise.The problem? The taxman rings twice (or more) on locally assembled phones. 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