Government Warns of Smuggling Threat to EGP 4.5B Mobile Investments

The Egyptian government has voiced concerns over the impact of smuggling on the country’s mobile phone market. Matti Beshay, Head of the Trade Committee at the Importers Division of the Federation of Egyptian Chambers of Commerce (FEDCOC), recently made an announcement to highlight the potential risks that smuggling poses to the mobile sector’s EGP 4.5 billion in investments and 2,050 jobs.

According to Beshay, international brands like Samsung, Xiaomi, Vivo and Nokia - which are contributing to the government’s push for localised mobile production - face challenges from smuggled products. These evade customs duties, creating artificially lower prices and reducing demand for domestically manufactured phones, resulting in layoffs and economic strain.

Beshay highlighted that smuggling not only undermines investor confidence but also deprives Egypt’s treasury of vital customs and tax revenue, hampering the funding of essential development projects.

The government has also raised concerns about smuggling’s broader impact on other sectors, including tobacco, where it reportedly accounts for 20% to 30% of the market, and cosmetics, where illicit products are valued at EGP 100 million. In the automotive sector, non-compliant imports have led to stricter import regulations issued by the Ministry of Finance.