Back to the complete issue
Wednesday, 7 September 2022

Madbouly: Gov’t to offer new tax breaks for high-value industries + won’t change course on expensive national projects despite economic headwinds

It was a slow night on the airwaves, with the talking heads focusing on a speech given by Prime Minister Moustafa Madbouly at Fayoum yesterday (watch, runtime: 25:43). The presser got coverage from Kelma Akhira, Masaa DMC, Al Hayah Al Youm, Ala Mas’ouleety among others. Here are the highlights:

More tax breaks for high-value manufacturing: Cabinet is considering new incentives to attract investment in advanced industries including electric-vehicle assembly, Madbouly said. Under the plans, companies investing in target industries could see their tax bill slashed by 70%. The government is also considering amending the 2017 Investment Law to extend incentives set to expire in 2023 for an additional five years, he said.

The IDA is getting its act together on licensing: Some 20k industrial licenses have been issued by the Industrial Development Authority (IDA) since the introduction of a new system over the summer to speed up the licensing process, Madbouly said. The new system sees licenses issued within no more than 20 days.

No turning back on mega-projects: The PM insisted that the government has no choice but to continue on with expensive national projects in response to calls for their suspension amid soaring inflation and rising economic headwinds. “We’re talking here about a state that is being built. If such projects are not implemented [in the current period], it will be implemented later at double the cost,” he said.

The National Dialogue still got attention on the talk shows, with Masaa DMC (watch, runtime: 10:30) and Al Hayah Al Youm (watch, runtime: 6:40) both covering Monday’s board meeting that selected several rapporteurs to the political, economic and social committees

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; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.