The luxury car brand BMW recently announced the establishment of a car manufacturing plant in Africa.
The car company launched its newest factory in Giza, Egypt at a cost of $150 million in December 2022.
This announcement was made by Global Auto Group, the official importer of BMW, BMW i & MINI automobiles in Egypt, as they disclosed their plans to begin assembling luxury models of the BMW brand locally.
According to the CEO of Global Auto, Mohamed Kandil, the assembly line in Egypt would begin with the manufacture of BMW X models, specifically the the SUVs category, starting with the X5 40 model.
“The locally assembled X3 and X4 will be delivered to customers who booked during the first quarter, and the X7 before the first half of this year,” Kandil added.
In December, the General Manager of BMW Egypt at Global Auto Group, Khaled Shedid noted that production for the first batch of BMW cars assembled in Egypt would begin in 1Q of 2023.
He further elaborated that the company plans to veer away from operating solely as showrooms or exhibitions and maintenance centers, but rather become a full fledged assembling investment that exceed $150m, which would generate around 600 jobs.
He also relayed the team’s commitment to sustainability, stating that about 30% of the components that would be used in the production of the BMW cars would come from recycled materials.
The factory would have an annual production capacity of 10,000 units.
This factory is not the first BMW outfit on the continent as the German conglomerate has an automobile manufacturer based in Rosslyn, South Africa.
According to its website, “over 85% of all BMW 3 Series vehicles produced at the Rosslyn plant are destined for BMW markets in the USA, Taiwan, Japan, Singapore, New Zealand, Hong Kong, Australia, Sub-Saharan Africa and Canada.”
In a nutshell BMW’s plan to set up a manufacturing plant in Africa is sure to contribute economically to the growth of the region.
The company's presence in the country will open up opportunities for local businesses to partner with BMW to supply components and services. This will give a substantial boost to the region's economy, as more money will be circulating within the country.
Not to mention that if the plant is anything like its South African counterpart, it would be supplying its products outside the country, giving Egypt more lee-way to influence economic growth,
In addition, BMW's presence in the region will create a more positive image for both Egypt and Africa as a whole. This will help to attract more foreign investments, which would provide a further boost to the region's economy.
Overall, BMW's arrival in Africa is sure to be a welcome addition to the region. It will bring much needed economic development and job opportunities, while also helping to improve the image of Africa as a whole.
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**This post forms part of the Africa Collective initiative, for which Business Insider Africa is the lead media partner. Learn more about the initiative here.
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