The Madbouly government is preparing to bake EGP 250 bn in concessional financing into the upcoming state budget to support manufacturing, tourism, and exports, a senior government source tells EnterpriseAM. While the headline figure is the EGP 250 bn allocation, the real shift is institutional, with the authorities also studying the creation of a dedicated industrial financing fund to house the initiatives.

Why it matters: For companies, the bottleneck hasn’t just been the amount of subsidized credit, but the friction in getting it. By centralizing coordination between the Central Bank of Egypt, the Finance Ministry, and the Industrial Development Authority, the government aims to solve the disbursement deadlock that has plagued previous rounds of funding. If successful, this fund would streamline the 15% (or lower) concessional lending programs that are the lifeblood of working capital for manufacturers and hotel developers.

Manufacturing will take the lion’s share of the package, with funding for the sector expected to jump from EGP 80 bn currently to over EGP 100 bn as the program expands beyond its current priority sectors (pharma, chemicals, automotive, food, and building materials) to include more high-value-added industries.

The EGP 50 bn tourism initiative will remain in place, alongside incentives supporting EV localization, natural gas conversion, clean mobility solutions, and renewable energy projects, we were told. Export subsidies in the new budget are also set to increase amid expectations of stronger demand for Egyptian products and improved access to external markets, the source said.

The final interest rate applied to these initiatives remains under review in light of potential monetary easing, the source noted. Currently, the Finance Ministry subsidizes these initiatives at a 15% rate, well below the CBE’s corridor rate.

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