A new EGP 30 bn initiative for local manufacturers: The industry and finance ministries have announced the launch of the first phase of a new EGP 30 bn initiative to support companies in priority industrial sectors, according to an Industry Ministry statement. The initiative aims to help private players finance the purchase of new machinery, equipment, and production lines.

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Targeted sectors: The initiative targets the pharma, food, engineering, chemicals, ready-made garments, spinning and weaving, mining, and building materials sectors.

A focus on Egypt’s underdeveloped areas: The initiative gives priority to facilities located in border governorates, Upper Egypt, southern Giza, Port Said, Ismailia, and Suez.

What does it entail: The initiative provides beneficiaries with a subsidized interest rate of 15% for five years from the start date of the initiative, with a maximum financing limit of EGP 75 mn per client or a total of EGP 100 mn for related entities. The initiative also includes additional incentives tied to increasing local value-added products. If a company boosts its local value-added by 7-10% compared to the previous fiscal year, the interest rate will be reduced by 1 percentage point. If value added increases by more than 10%, a 1.5 percentage point reduction applies. Companies with high import volumes can also benefit from a 2 percentage point interest rate reduction.

The initiative marks the latest in a long list of incentives introduced this year to support industry — Read more about how the industrial sector fared in 2024 in our two-parter Inside Industry. Check out the stories here and here.

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