The government has its sights set on tackling the backlog of dues owed to exporters, with the Finance Ministry and the Investment Ministry announced a new mechanism to clear EGP 60 bn in overdue payments to exporters through the Export Development Fund during Prime Minister Mostafa Madbouly’s weekly presser yesterday (watch, runtime: 50:43). The plan covers arrears tied to shipments made up to 30 June 2024 and involves a combination of cash-based disbursements and offset arrangements.

Exporters will receive 50% of their dues in cash installments over four fiscal years, starting with an annual EGP 8 bn payout this year, while the remaining 50% will be settled through offsets against outstanding or future liabilities with the Tax Authority, Customs Authority, and utility providers like gas and electricity companies.

For the first time, exporters will receive their dues for FY 2024/25 within the same year, with the first installment expected later this month.

The government is also drafting a new program to support exporters starting in FY 2025-2026, with measures being developed to help raise export revenues, increase export volumes, and boost the value-added content of Egyptian products to strengthen their competitiveness abroad.

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