The government is expanding its flagship industrial support program, with the cabinet approving a broader second phase aimed at injecting fresh liquidity into the sector. Finance Minister Ahmed Kouchouk and Industry Minister Khaled Hashem announced in a joint statement that the revamped initiative will now cover a wide range of industries, enabling factories to finance advanced machinery, equipment, and production lines.

A key change is the increase in borrowing ceilings to support larger-scale upgrades. The maximum financing limit for individual companies has been raised to EGP 100 mn, up from EGP 75 mn in the first phase, while related corporate groups can now access up to EGP 150 mn.

Better performance = lower rates: Although the subsidized base interest rate remains at 15% — with the Finance Ministry covering the gap to market rates for five years — manufactures can secure lower rates by achieving higher local value-added ratios or introducing pioneer products that substitute high-volume imports.

In line with the government’s broader shift toward performance-based incentives, access to subsidized credit will be tied to strict KPIs. Authorities will track increases in production capacity, actual output volumes, and the extent to which a firm fills a local market gap.

Why it matters: By linking preferential financing to measurable gains in output, employment, and import substitution, the government is recasting industrial support as tools for competitiveness and integration into global value chains.

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