Presidential Initiative Delivers 27.3 Thousand Vehicles, Secures £7.5 Billion in Bank Financing

The Presidential Initiative to replace vehicles over 20 years old with new ones running on natural gas has successfully delivered approximately 27.3 thousand vehicles from the beginning of the initiative until July.

Mujahid Hosni, Spokesman for the Car Replacement Initiative at the Ministry of Finance, stated that 27.3 thousand vehicles, comprised of private cars, taxis, and minibuses, were delivered to beneficiaries since the launch of the initiative until July.

Hosni further noted that Egyptian banks participating in the initiative have financed the purchase of new vehicles for citizens through an installment system, totaling about £7.5 billion.

The National Bank of Egypt contributed the highest share of total financing, providing approximately £3.196 billion. 

Banque Misr followed in second place with £1.5 billion in financing. The Housing and Development Bank ranked third, providing £793 million, while the Agricultural Bank of Egypt secured fourth place with £313 million. The remaining banks shared the residual amounts.

Hosni elaborated that 31 banks participate in the initiative, paying the full price of the new car to the automotive companies through a reduced fixed interest rate of 3%, distributed over the installment duration chosen by the citizen, either seven or ten years.

Dr. Mohamed Maait, Minister of Finance, disclosed that the state treasury has borne £675 million, the value of the “green incentive” in the initiative. 

The initiative has begun accepting applications from citizens in the Ismailia Governorate who wish to replace their aged cars, manufactured twenty years or more ago, with new natural gas-powered vehicles.

Dr. Maait called upon the business community and manufacturers to present their products and innovative solutions for vehicle manufacturing technology. In collaboration with the Federation of Industries, invitations were extended to members of the Automotive Division of the General Federation of Chambers of Commerce, encouraging participation in the development of the eco-friendly automobile industry and infrastructure. Proposals and offers can be submitted via email.

Khaled Nofal, First Assistant Minister of Finance and Chairman of the Board of Directors of the “Vehicle Replacement Fund” at the Ministry of Finance, clarified that residents of the Sharqia, Bani, and Seif governorates who applied for vehicle replacements are now allowed to scrap their outdated cars in the main yard of the Greater Cairo Governorate in the Abu Rawash area. This measure is set to expedite the process for citizens to obtain their new vehicles.