Mohamed Maait, Minister of Finance, said on Wednesday that 633 companies received EGP 4.5bn in the first batch of the fifth phase of the lump-sum export subsidy payment initiative, out of the EGP 10bn approved by the Cabinet to this end last August.
Maait explained, in a statement, that this reflects the government’s commitment and keenness to stimulate the export sector, and encourage it to expand investment activities, by providing the necessary cash to continue the production cycle, preserve employment, and expand the export base, in a manner that leads to enhance the competitiveness of Egyptian products in the regional and global markets, raise economic growth rates, and achieve comprehensive and sustainable development goals.
Ahmed Kochouk, the Deputy Minister of Finance for financial policies and institutional development, said that next December will witness the launch of the second batch of the fifth phase of the initiative which started in August. The previous four phases of the initiative provided the necessary financing for the continuation of export activities.
He pointed out that the government continues to pay the overdue export subsidies to the Export Development Fund despite all the harsh global pressures on the state’s general budget, resulting from the war in Europe, and the consequent disruption in supply chains, and the sharp rise in commodity prices and shipping costs.
Nevine Mansour, the advisor to the Deputy Minister of Finance, said that EGP 37.5bn has been disbursed through the initiative since its launch in October 2019, which represents unprecedented support for the export sector and the business community in Egypt.
She explained that the positive impact of the initiative was reflected in the increase in the volume of Egyptian non-oil exports, which witnessed a remarkable rise of $32.4bn in 2021, which breaks the $25bn barrier that prevailed for many years before the initiative.