TAXATION-

VAT breaks on importing machinery: Companies will be handed a temporary VAT exemption on all imported machinery and equipment used to produce goods or perform services under amendments to the executive regulations of the VAT Law signed off on by the Finance Ministry last week, according to a ministry statement. A reduced 5% rate of VAT is applied to machinery and equipment used to produce goods and services but this will be scrapped for an undefined period of time, the ministry said.

REGULATION-

FRA increases maximum credit limit for micro enterprises: The Financial Regulatory Authority (FRA) has raised the borrowing limit for micro businesses by 10% to EGP 220k, it said in a statement (pdf) last week. The move comes in light of ongoing economic turbulence and the need to help institutions meet their financial obligations, FRA boss Mohamed Farid said. The FRA doubled the credit limit for micro firms to EGP 200k in 2019.

EXPORTS-

Gov’t rolls out the sixth phase of the export subsidy program: The board of the Export Development Fund approved the rolling out of a new phase for the export subsidy program allowing exporters to receive their subsidies in a single payment, according to a Trade Ministry statement on Thursday. Export shipments made before 1 January 2023 are eligible for subsidies in this phase and companies that have submitted their applications before 1 April are set to get paid in July, while applications that will be submitted after that date and before 1 June are set to get paid in August, the statement reads.

Remember: Government spending on export subsidies will almost quadruple to EGP 28 bn in the coming fiscal year.

OUTSOURCING-

Big Four accounting firm PwC has opened a digital outsourcing center in Cairo, it said lastweek. The USD 10 mn Egypt Technology and Innovation Center has so far hired 400 tech experts and expects to create 5k jobs and export USD 300 mn worth of digital services by 2025, according to the Communications Ministry. It will offer services including enterprise resource planning, customer services, cybersecurity, data analytics and business intelligence, cloud solutions, and automation. PwC was among 29 global firms that signed an agreement with the government to up their investments in our outsourcing industry late last year.

DEVELOPMENT FINANCE-

EBRD, EU + ILX pledge EUR 300 mn in private-sector finance: The European Bank for Reconstruction and Development (EBRD), the EU, and EM credit fund ILX have entered a partnership to increase private sector capital in EBRD partner countries, including Egypt, the bank said in a statement yesterday. The three aim to deploy up to EUR 300 mn over the coming three years.

TRANSPORT-

EgyptAir Cargo is returning to Libya’s capital: EgyptAir Cargo recently resumed weekly flights to Tripoli following an 8+ year hiatus, it said Thursday. The airline might increase the frequency of flights based on demand, according to the statement. There are plans to boost the number of regular and charter flights to several Libyan destinations, including Benghazi and Misrata, to expand the company’s air cargo network, he added.

TOURISM-

From Kazakhstan to Sharm: Red Sea Airlines has started operating weekly flights from Kazakhstan’s Almaty and Astana to Sharm El Sheikh,Al Mal reported.

BANKING-

The Central Bank of Egypt has received the ISO security and resilience certification in business continuity management systems from MSECB, the bank said in a statement. The certification reflects the “efforts accomplished by the CBE to ensure the continuity of all its critical activities during times of crises and emergencies.”

DEBT-

Erada Microfinance has secured an EGP 100 mn loan from Banque du Caire to finance its expansion,according to a statement (pdf). The NBFS company was launched in January by the Sovereign Fund of Egypt (SFE) and Etisalat Egypt and aims to improve access to finance for micro and small businesses.

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