News Middle East22 Jul 2021

Egypt:Govt grants incentives to replace vehicles older than 20 years to cut emissions

| 22 Jul 2021

Egypt is replacing microbuses and other vehicles aged more than 20 years with newer models running on green fuels, as part of the presidential initiative to promote green vehicles.

The move comes as part of the nationwide multi-year initiative to replace obsolete vehicles with newer models running on natural gas.

This initiative targets a total number of 250,000 obsolete vehicles. A total of 70,000 will be replaced in the first year, including 55,000 private cars and taxis and 15,000 microbuses, whilst 90,000 vehicles will be replaced in the second and third years, each.

The governorates covered in the first phase of the exercise are: Cairo, Giza, Qalyubia, Alexandria, Suez, Port Said, and the Red Sea.

Mr Amgad Mounir, head of the Vehicle Replacement Fund (VRF) at the Ministry of Finance and Executive Director of the initiative, said earlier this month that the government has adopted new measures to expand the scheme. This includes facilitating the ownership of advanced and environmentally-friendly vehicles.

Mr Tarek Awad, a spokesperson for the initiative, said that the delivery of 2022 model cars will start this month from car companies participating in the initiative.“

Finance Minister Mohamed Maait has stated that the State Treasury bears the burden of financing the green initiative in the first phase. Under the initiative, private car owners can get 10% off on the cost of a new car, up to EGP22,000 ($1,400); taxi owners, 20% up to EGP45,000; and minibus owners 25% up to EGP 45,000.

Banks participating in this initiative provide loans for the new vehicles at a fixed interest rate of 3% per year with the repayment period ranging from seven to 10 years.

The scheme is open to vehicle manufacturers which roll out vehicles with a local component ratio of no less than 45%. The goal of the scheme includes minimising air pollution through the reduction of harmful gas emissions.


 


 


 

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