More export subsidy details leaked: The local press was out yesterday with more leaks of the executive regulations for the Export Subsidy Fund’s new framework. Details of how the government is planning to compensate personal and medical care manufacturers and leather product makers made it to the papers yesterday evening. The rates those industries will be receiving for exporting their products abroad are largely similar to those of the food, engineering, and furniture sectors, which we noted yesterday.

How much? Only companies that achieve a minimum value-added rate of 40% (ie. use local content of more than 40% in their export-bound products) will be eligible. Medical supplies and leather product manufacturers that achieve an added value of over 80% will be eligible for subsidies of 10% of the value of their exports.

The Export Subsidy Fund will be committed to covering 50% of freight costs for exporters shipping to African countries. This is applicable to all industries covered by the scheme.