Back to the complete issue
Tuesday, 24 September 2019

Schneider Egypt inks settlement on overdue export subsidies

Schneider inks settlement on overdue export subsidies: Schneider Electric has signed an agreement with the government that should see it receive overdue export subsidies by the end of the year, President for North East Africa and the Levant Walid Sheta said, according to Masrawy. The agreement is expected to contribute to increasing the company's exports next year, Sheta added. Schneider is studying setting up a new factory in the Suez Canal area, which could take up to three years to be up and running, Sheta told the newspaper. This is possibly part of the agreement: Larger corporations are encouraged under the new export subsidy framework announced last July to commit to new investments to speed up their late payments.

The agreement is the second reported settlement after one with Sumitomo Tires announced last week. That’s when the government started implementing a new EGP 6 bn export subsidy framework and said it was taking steps to settle overdue payments promised by the Export Subsidy Fund under an old program. Under an agreement reached with exporters in May, settling companies will receive their arrears through either writing off the overdue amounts against their taxes or applying for industrial land at a discount through the government’s new online land allocation portal.

The arrears have accumulated since 2011 to reach EGP 25 bn,Finance Minister Mohamed Maait said yesterday at the Future of Investment in Egypt conference, according to Amwal Al Ghad. This is the first official statement about the size of the expected settlements, and is more than double the Egyptian Businessmen Association’s rough estimate of EGP 9 bn that was reported last year.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.