Back to the complete issue
Wednesday, 16 June 2021

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.

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.