BMW, a luxury automaker, recently revealed plans to build a car factory in Africa.
In December 2022, the automaker opened its most recent facility, which cost $150 million, in Giza, Egypt.
Global Auto Group, the official importer of BMW, BMW i, and MINI vehicles in Egypt, made this announcement as part of their intentions to start building luxury BMW cars locally.
Mohamed Kandil, CEO of Global Auto, stated that the production of BMW X models, specifically those in the SUV category, would start on the assembly line in Egypt with the X5 40 model.
According to Khaled Shedid, General Manager of BMW Egypt at Global Auto Group, manufacturing for the first batch of BMW vehicles built in Egypt would start in the first quarter of 2023.
He went on to say that the company intends to stop acting only as showrooms, exhibition halls, and maintenance facilities and instead transform into a full-fledged assembly operation worth more than $150 million, creating 600 employment.
He also reaffirmed the group’s dedication to sustainability, noting that around 30% of the parts used to create the BMW automobiles would be made of recycled materials.
The factory would be able to produce 10,000 units annually.
This plant is not the first one operated by BMW on the continent; Rosslyn, South Africa is home to the company’s automaker.
In a nutshell, BMW’s decision to establish a manufacturing facility in Africa will undoubtedly support the economic development of the region.
The company’s presence in the nation will present chances for regional companies to collaborate with BMW to supply parts and services. Because more money will be moving around the nation as a result, the economy of the region will experience a significant boost.
In addition, if the facility is anything like its South African equivalent, it will likely export its goods, allowing Egypt more control over economic development.
Additionally, BMW’s presence in the area will improve Egypt’s and Africa’s overall reputations. This will encourage additional foreign investment, which will further strengthen the local economy.
Overall, BMW’s entry into Africa will undoubtedly be a positive development for the continent. It will contribute to the much-needed economic growth and job possibilities while also enhancing the perception of Africa as a whole.
Source: Business Insider Africa
