Back to the complete issue
Monday, 15 August 2022

Here’s what qualifies as a strategic project

Cabinet lays out criteria for strategic + national projects: Projects in electricity and renewable energy, petroleum, mineral resources, transport, CIT, housing, tourism, youth and sports, and military production could be considered a national or strategic project under a set of criteria the Madbouly cabinet approved on Thursday, according to a statement.

To qualify, projects in these fields must also fulfill at least two of the following criteria:

  • Contributing to the country’s export volumes by exporting at least 50% of its total production output each year, within a maximum of three years of starting operations;
  • Helping to slash imports and localize manufacturing, while meeting a minimum 50% local component quota;
  • Relying on financing from foreign funders and investors, with the funding transferred from abroad through an Egyptian bank;
  • Setting up or operating the project in one of the areas cabinet previously identified as most in need of development;
  • Contributing to localizing new and advanced technology in Egypt and transferring know-how;
  • Supporting innovation, development, and scientific research;
  • Contributing to securing the country’s supply of strategic commodities and cutting down on their imports;
  • Relying mostly on Egyptian laborers;
  • Contributing to climate goals, including reducing emissions.

ALSO- Minimum capital requirements for sole proprietorships slashed: Establishing a sole proprietorship now has a minimum capital requirement of EGP 1k, down from EGP 50k previously, after cabinet approved amendments to the Companies Act, the statement said. The reduced requirement is designed to encourage entrepreneurs and startups to set up businesses in their own name and reel in more investments.

IN OTHER REGULATION NEWS-

Cabinet in a separate meeting approved measures meant to make it easier for industrial developers to buy land, a statement read. A government committee has approved a per-meter pricing mechanism to sell state-owned land to industry that takes into account the cost of utilities and is set to offer more attractive prices to investors, the statement read. Cabinet also agreed to extend the 7% interest rate on installment plans for industrial land for another three years.

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; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.