Egypt Waives 5% Fee on Zone Based Phones Sold Locally

Phone manufacturers operating in Egypt’s economic and private investment zones will no longer pay the 5% development fee on handsets sold locally, removing a charge that had applied because their output was cleared as imports.

Manufacturers outside those zones were not subject to the same levy on domestic sales, while devices produced within the customs area were already exempt. The exemption is conditional on commitments to new investment and higher production capacity.

The measure comes alongside wider support for the mobile industry, including its inclusion in the export rebate programme for seven years from May and measures to simplify exports and support local sales.

Fifteen global brands currently manufacture phones in Egyptian factories, with output at around 10.5 million handsets. The government is targeting production of 14 million to 15 million devices this year, compared with around 10 million in 2025.

Total investment in the industry stands at around USD 200 million, according to the Ministry of Communications and Information Technology. The incentives come as locally made handset sales have fallen by around 20% this year, while imports of phone production inputs rose 37.1% to about USD 500 million in the first half of 2026.