Egypt Launches EGP 30 Billion Initiative for Industrial Sector

The Egyptian government, represented by the Ministries of Finance and Industry, launched the first phase of the new initiative to support companies in priority industrial sectors, with a value of EGP 30 billion.

The initiative includes financing facilities for the private sector to purchase machinery, equipment and production lines in the pharmaceutical, food, engineering and chemical industries, ready-made garments, spinning and weaving, mining and building materials industries, and giving priority to establishments located in areas most in need of development and with the most workers, such as border governorates.

According to a government statement, the General Treasury contributes to financing this initiative and bears the interest rate difference to increase production capacity and enhance economic growth.

Companies joining this initiative benefit from the 15% subsidized return rate from the General Treasury for 5 years from the start date of the initiative, with the maximum financing for a single customer being EGP 75 million and related parties EGP 100 million.

These companies also receive an additional 1% interest rate reduction when the local added value in their products increases by 7% to 10% over the previous fiscal year. The additional reduction increases to 1.5% when the local added value increases by more than 10%. The additional reduction in interest rates also increases to 2% for newly established industrial activities that have not previously been produced locally and whose import volume is large.