The Egyptian economy has been given a boost with the announcement of a $1bn (E£32.87bn) tyre factory by Rolling Plus Chemical Industries, according to government reports. The factory will be able to produce seven million tyres per year.

The 400,000m² tyre manufacturing facility will create 1,000 direct and indirect jobs, as well as produce 2.5 million units each year, according to Ahram online.

News about the new tyre factory comes at a time when Cairo is considering expanding tax exemptions to stimulate investment in key industries including electric vehicles, green energy, pharmaceuticals and textiles.

In August, Egyptian Prime Minister Mostafa Madbouly said the country is ready to provide incentives to encourage companies to localise production of cars and other automotive components in the country.

“The state is also prepared to collaborate with serious investors in the automotive industry by providing land and even building factories,” he continued.

Madbouly’s statements came one week after his visit to South Africa, during which his country was invited to join the BRICS, a forum of large emerging economies comprising Brazil, Russia, India, China and South Africa.

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“During his visit to South Africa to participate in BRICS meetings, Madbouly met with members of the African Association of Automotive Manufacturers (AAAM) and visited the automotive industry modernisation centre and some auto factories,” the press statement read. “South Africa produces nearly 352,000 vehicles annually that are exported to 152 countries.”

Overall, Egypt saw a significant jump in foreign direct investment (FDI) in 2022, with Cairo reporting $11.4bn in FDI net inflows compared with just $5.12bn the year before.