Egypt: Government provides $2.53bln in easy financing for agricultural, industrial production activities

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Egypt - Minister of Finance, Mohamed Maait, announced that Prime Minister Mostafa Madbouly has approved the continuation of an initiative aimed at supporting interest rates for financing facilities in productive sectors. The goal is to drive the Egyptian economy by empowering the private sector and increasing its contribution to economic and developmental activity.

The initiative aims to localize domestic production, maximize exports, and enhance the competitiveness of Egyptian products in global markets. State resources will be optimally utilized, leveraging strategic geographical advantages as a regional and global hub for production and export.

Moreover, advanced infrastructure will accommodate investment expansions, streamlining procedures leading to the golden licence. In addition, investment incentives, tax benefits, and customs incentives will be provided for priority national sectors.

As for the financial details, EGP 120bn in easy financing will be allocated for agricultural and industrial production activities. The interest rate will not exceed 15%, and EGP 105bn is earmarked for working capital financing, while EGP 15bn will support machinery, equipment, or production lines.

The government shares the financing burden with investors to reduce production costs and stimulate exports.

The General Treasury of the State annually covers around EGP 8 billion in interest rate differential costs for initiative beneficiaries.

The interest rate for current financing and balances used in working capital will remain at 11%.

The maximum financing limit for a single company increases from EGP 75m to EGP 100m.

Multi-party entities can access up to EGP 130m (up from EGP 112.5m).

The initiative applies to new and renewable energy activities, free zone factories, and agricultural cooperative associations.

Credit facilities granted cannot be used to pay off debts to the banking sector.

This initiative aims to drive agricultural and industrial production, enabling Egypt to meet more of its needs through local production and export surpluses.