Finance Ministry announces EGP 8bn disbursement for export subsidy initiative by 6 June

Daily News Egypt
2 Min Read

The Egyptian Finance Ministry is set to disburse EGP 8bn to exporters as part of the lump-sum export subsidy payment initiative. This move, scheduled for 6 June, is in line with presidential directives aimed at bolstering the productive and export sectors amidst current global challenges.

Minister of Finance Mohamed Maait confirmed that this initiative’s seventh phase would commence on the announced date, benefiting companies that have finalized their documentation up to 30 June 2023. The disbursement schedule also includes 27 June and 8 August. Discounts on accelerated payments will be applied as follows:

  • A 15% discount for shipments up to 30 June 2021.
  • An 8% discount for shipments from 1 July 2021 to 30 June 2022.
  • No discounts for shipments from July 2022 onwards.

Maait emphasized the government’s commitment to stimulating economic growth through support programs, particularly for the industrial and export sectors. The upcoming fiscal year’s budget allocates EGP 40.5 billion for these initiatives, including EGP 23bn to address export-related challenges promptly.

Over the past four years, the government has provided EGP 55bn in support to exporters, with an additional EGP 8bn slated for disbursement.

Nevine Mansour, Advisor to the Deputy Minister for Financial Policies and Institutional Development, noted the high demand for the initiative’s seventh phase, with 2,500 companies applying between 10 March and 9 May this year.

The Ministry of Finance, in collaboration with the banking sector, the Ministry of Trade and Industry, and the Export Development Fund, has successfully implemented previous initiatives to clear export support arrears.

Export support payments are processed through the National Bank of Egypt (NBE), Banque Misr, Banque du Caire, and the Export Development Bank of Egypt (EBank).

 

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