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Tuesday, 31 May 2016

Trade Ministry bolsters EGP 6 bn export subsidies with EGP 3.4 bn to promote exports

The Industry and Trade Ministry will spend EGP 3.4 bn (or c.USD 400 mn) in FY2016-17 to promote Egyptian exports, said Industry and Trade Minister Tarek Kabil. The funds are in addition to EGP 6 bn in export subsidies, Al Mal reports, without giving a breakdown of how the new funding might be used. Kabil has also allocated EGP 1 bn to support specific sectors, the minister added, stopping short of clarifying whether this was related to the EGP 1.5 bn exceptional export subsidies program which we noted yesterday.  

The news came as Egypt’s non-oil exports grew 9% y-o-y to USD 3.7 bn in April, according to remarks attributed to Kabil in an emailed statement. It’s the first time exports have risen in more than a year. Imports fell 22.6% y-o-y to USD 12.8 bn in 1Q2016 (compared with from EGP 16.6 bn last year), the statement also noted. We’ll be on the lookout for the CBE’s quarterly balance of trade report for a detailed breakdown. Kabil said on Saturday that non-oil exports have dropped consistently for the last 15 months, shedding c. EGP 2.8 bn mainly due to natural gas shortages.

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