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Wednesday, 3 April 2019

Export subsidies to include cash, settlements and logistical support

Has the export subsidies flap finally settled? The Export Subsidy Fund’s board of directors has agreed to a general strategy framework for reimbursements in an attempt to increase exports and improve the trade balance, according to a Trade Ministry statement (pdf). The new framework, which will come into effect in the upcoming fiscal year, includes allocating 40% of the fund’s budget to cash-based subsidy payments for exporters, 30% settlements with the Finance Ministry, and 30% in logistical and technological support, the ministry said. The new strategy aims to have exports reach USD 55 bn within the coming five years, from USD 24.8 bn currently, Trade Minister Amr Nassar said. The Fund has been allocated EGP 6 bn in the draft state budget for FY2019-20, Finance Minister Mohamed Maait said. Food Export Council member Karim Abou Ghaly told us back in November that he and his fellow members were waiting for the payout of as much as EGP 3 bn.

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