AAIB Finances New MCV Plant to Manufacture Electric Buses for Export to Europe
The Arab African International Bank (AAIB) has announced financing part of the investment cost for a new MCV (Manufacturing Commercial Vehicles) facility in the industrial zone of New Salhia City. The project represents the first phase of a strategic plan to assemble electric buses in Egypt for export to Europe, in partnership with global automotive giant Volvo.
According to the bank, a long-term loan package of EGP 770 million and €8 million was extended in January 2024 for a period of seven years, aimed at funding the construction of the factory and its new production lines.
Supporting Local Industry and Exports
Tamer Wahid, Vice Chairman and Managing Director of AAIB, stressed that the financing aligns with the bank’s role in supporting national industry and driving added value for the Egyptian economy. He praised MCV’s model of localizing manufacturing through strategic partnerships with leading international companies.
Volvo Partnership and Export Ambitions
MCV CEO Karim Ghabbour expressed gratitude for the support provided by the government and banking partners, noting that Volvo’s decision to choose Egypt as a hub for electric bus production reflects global confidence in the quality of Egyptian manufacturing.
Ghabbour added that under the new agreement, the factory will produce around 500 electric buses annually for Volvo in Sweden. This move is expected to raise exports to 70% of the company’s total sales, strengthen Egypt’s position as a regional hub for electric bus manufacturing, and boost foreign currency inflows.