Export subsidies program approved by cabinet, but we’re yet to hear more
A new export support program got the green light from cabinet today and is due to come into play at the start of the state’s new fiscal year on 1 July, according to a statement following the ministers’ weekly meeting. The program will be similar to schemes Egypt has been implementing for nearly a decade to dole out cash payouts to exporters based on the volume of their sales, but will also:
- Aim to boost domestic manufacturing and bring added value to Egyptian products.
- Push for export growth from Upper Egypt, border regions, the Rubiki industrial zone, Damietta furniture city, and the Suez Canal Economic Zone.
- Drive sales to Africa and other target markets, including by helping companies cover freight costs.
The cabinet statement was scant on further detail on how exactly these plans would be realized.
The new program will replace an EGP 6 bn scheme that fell out of favor with the nation’s exporters shortly after the government started implementing it in FY2019-2020 — mainly due to a lack of clarity in its executive regulations and for what were seen as lackluster promises to reimburse exports via cash and non-cash incentives, rather than just cash.
ALSO APPROVED BY CABINET- Handing over some construction work at the planned electric rail line between Salam City and Tenth of Ramadan City to the Aviation Industry Corporation of China (Avic). Avic was awarded the construction contract for the first and second phases of the 90-km line as part of a consortium which also includes China Railway Group Limited, and which will work alongside Egyptian contractors including Orascom Construction.