Finance: 28K Cars Delivered as Part of the Presidential Initiative to Replace Vehicles

In a significant move towards environmental sustainability and modernization of the automotive industry, Dr. Mohamed Maait, Minister of Finance, announced the delivery of over 28,000 new, environmentally friendly cars. These vehicles were provided at prices below market rates and available for purchase through installment plans over 7 or 10 years. This initiative, launched in March 2021, aims to replace obsolete vehicles that are at least 20 years old with newer, eco-friendly models.

Details of the Initiative

Purpose and Goals

The presidential initiative aims to:

• Reduce carbon emissions.

• Support the transition to clean energy.

• Provide safe and economical cars to citizens.

• Boost the local automotive industry by increasing the use of locally manufactured components.

Benefits and Support

Financial Support

The state’s public treasury has allocated 718 million pounds as a green incentive to support this initiative. Beneficiaries also receive credit facilities from participating banks, which include:

• A 3% interest rate.

• Lump-sum annual returns.

• Reduced costs for life and car insurance policies.

• An additional free insurance policy covering personal accidents for the car driver, up to 100,000 pounds.

Geographic Reach

The initiative has been extended to multiple governorates, reflecting the government’s commitment to expanding the beneficiary base and promoting green transformation across the country. The covered regions include:

• Cairo

• Giza

• Alexandria

• Qalyubia

• Ismailia

• Sharqia

• Beheira

• Beni Suef

• Sohag

• Luxor

• Aswan

• Port Said

• Suez

• The Red Sea

• Sharm El-Sheikh

Environmental and Economic Impact

Environmental Impact

The initiative aims to significantly reduce environmental pollution by replacing old, high-emission vehicles with new, more efficient ones.

Economic Impact

By encouraging the local production of cars, the initiative supports the national economy and creates job opportunities in the automotive sector.

Future Developments

Transition to Electric Vehicles

The government plans to gradually introduce electric vehicles as replacements for traditional cars. This shift is intended to further promote clean energy use and reduce reliance on petroleum products. The initiative will also stimulate companies specializing in the technology and manufacturing of environmentally friendly and electric vehicles.

The presidential initiative to replace obsolete vehicles with new, eco-friendly models represents a major step towards environmental sustainability and industrial growth in Egypt. By providing financial incentives and credit facilities, the initiative makes it easier for citizens to upgrade their vehicles while supporting the local automotive industry and reducing environmental pollution.