Government still committed to paying exporter’s due with Export Development Fund: Finance Minister

Daily News Egypt
3 Min Read

Minister of Finance Mohamed Maait confirmed that the government continues to implement presidential directives to support the export sector by proceeding with the payment of exporters’ dues from the Export Development Fund.

The fund provides exporters with cash that enables them to fulfil their obligations to their customers and maintain employment despite the severity of global economic challenges, including disruptions in supply chains and a sharp rise in commodity prices and shipping costs, embodying an unprecedented inflationary wave and the pressures it imposes on the public budget for the state.

Maait explained that about EGP 33bn of government support for exporters has been disbursed to more than 2,500 companies through the Export Development Fund, which has been in implementation since October 2019.

He added that the last batch of beneficiaries in the fourth phase of the immediate cash payment initiative — which was launched in mid-November — will have their dues paid on 28 April, explaining that it is to motivate exporters to maximise their activities, which contributes to bringing the annual export volume to $100bn.

It was decided to implement the immediate cash payment initiative for all exports shipped as of 1 July 2021 with a discount rate of 8% in acceleration payments, instead of the 15% percentage that was in force on exports shipped till 30 June 2021.

He explained that the immediate cash payment initiative to support exporters has received great demand from the business community in a way that reflects its success in providing the necessary financing for the continuation of export activities and thus maintaining the rotation of the production wheel, which is in line with the state’s efforts to maximise its production capabilities and the competitive strength of Egyptian products in global markets, strengthening the structure of the national economy and raising growth rates to achieve comprehensive and sustainable development goals.

For his part, Ahmed Kochouk — Deputy Minister for Financial Policies and Institutional Development — said that for the first time, exporting companies in the ceramic, automobile, and pharmaceutical sectors were allowed to apply to join the fourth phase of the immediate cash payment initiative to support exporters, emphasising the government’s keenness to stimulate the export sector and encourage exporters to expand their productive activities.

Nevine Mansour — Adviser to the Deputy Minister for Financial Policies — indicated that the fruitful cooperation with the banking sector, the Ministry of Trade and Industry, and the Export Development Fund contributed to the success of one of the fastest initiatives to be implemented to return overdue amounts to support exporters in a way that is reflected in stimulating investment and stimulating economic growth. This was reflected in an unprecedented rise in non-oil exports exceeding $32bn.

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