{"id":664650,"date":"2025-05-05T00:00:00","date_gmt":"2025-05-05T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2025\/05\/05\/revamped-export-subsidy-program-to-double-rates-across-the-board\/"},"modified":"2025-05-05T00:00:00","modified_gmt":"2025-05-05T00:00:00","slug":"revamped-export-subsidy-program-to-double-rates-across-the-board","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2025\/05\/05\/revamped-export-subsidy-program-to-double-rates-across-the-board\/","title":{"rendered":"Revamped export subsidy program to double rates across the board"},"content":{"rendered":"

More on the updated export subsidy program:<\/strong> The government is preparing to unveil a revamped export subsidy program<\/a> that will roughly double support rates across all sectors, introduce new incentives for branded exports, and prioritize higher value-added sectors, two sources with knowledge of the matter told EnterpriseAM. The framework \u2014 discussed with export councils in mid-April \u2014 is expected to be formally announced soon, come into effect at the start of the new fiscal year on 1 July, and run through 2028. <\/p>\n

(Tap or click the headline above to read this story with all of the links <\/strong>to our background as well as external sources.)<\/p>\n

The breakdown:<\/strong> Baseline subsidy rates will rise to 5-6% in the upcoming fiscal year, up from around 3% for the engineering, pharma, and chemicals sectors, while rates for other sectors will roughly double from their current levels. Companies exporting under Egyptian brand names will also receive an additional 2%, with earmarked support for registering trademarks abroad and entering new markets for the first time.<\/p>\n

IN CONTEXT- <\/strong>Facing budget constraints, the government slashed export subsidy rates by up<\/a>to 70%<\/a> across all sectors this fiscal year. The new fiscal year will see the launch of a revamped program with a significantly larger allocation of EGP 44.5 bn<\/a>, according to the draft state budget.<\/p>\n

Priority sectors: <\/strong>The government will place particular emphasis on supporting the engineering, pharma, and chemical industries under the new scheme. Other sectors will remain eligible, though at varying support rates. Exporters operating in specialized industrial zones could also be in for preferential terms.<\/p>\n

Local content requirements will be left unchanged for now:<\/strong> The local content requirement will remain at 35%, rather than the 40% threshold originally proposed by the export councils, to prevent a large number of companies from falling out of eligibility, the sources said. The government is studying a gradual increase in the coming years as part of a longer-term plan to raise the value-added of Egyptian exports.<\/p>\n

And exporters can keep their USD proceeds: <\/strong>The revamped program scraps the requirement that exporters give up 50% of their USD proceeds, the sources said, adding that export councils have been lobbying for the removal of this requirement to improve liquidity and competitiveness.<\/p>\n

Calls for clarity and quicker payments: <\/strong>The Engineering Industries Export Council has proposed rolling out a simplified version of the program with clear and fixed contribution rates, council head Sherif El Sayad told EnterpriseAM. \u201cIt\u2019s a good step,\u201d he said of the new 5-6% range \u2014 double the current rate \u2014 \u201cbut what would truly satisfy us is reaching an 8% minimum support rate.\u201d<\/p>\n

The council is also pushing for subsidy disbursements to be made within a maximum of <\/strong>three months and in <\/strong>cash<\/strong> to accelerate working capital cycles<\/strong>, according to El Sayad. It has urged the government to avoid any surprise deductions from subsidy entitlements, warning that exporters operate on slim margins.<\/p>\n

Africa gets special attention: <\/strong>The updated framework will provide additional support for exports to African markets, particularly through enhanced shipping and logistics incentives, the sources added \u2014 part of Egypt\u2019s wider push to establish itself as a continental trade hub.<\/p>\n","protected":false},"excerpt":{"rendered":"

The revamped program will come into effect at the start of the new fiscal year on 1 July<\/p>\n","protected":false},"author":1,"featured_media":664651,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8516],"tags":[72,98,132],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-664650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trade","tag-enterpriseam","tag-subsidies","tag-trade","wpautop","entry"],"acf":{"mongo_id":"7baf248b-c4bd-45ef-b058-cecf7943a58d","order":"6","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/5\/192.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Revamped export subsidy program to double rates across the board","related_issue":[664640],"teaser":"The revamped program will come into effect at the start of the new fiscal year on 1 July","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/5\/.87a2d4e1-19da-47a5-9063-c082bb4191d7.mp3"},"yoast_head":"\nRevamped export subsidy program to double rates across the board - 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We\u2019re wrapping up what has been a pretty busy Ramadan with another packed issue led by the growth figure for the second quarter of the current fiscal year and the cabinet greenlighting next fiscal year\u2019s EGP 4.6 tn budget. We also have news of yet another big-ticket\u2026","rel":"","context":"In "What We're Tracking Today"","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/3\/2255.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":585777,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/30\/govt-to-hand-out-another-egp-10-bn-in-export-subsidies\/","url_meta":{"origin":664650,"position":1},"title":"Gov\u2019t to hand out another EGP 10 bn in export subsidies","author":"enterpriseam admin","date":"30 April 2023","format":false,"excerpt":"The sixth phase of the program opens for applications in May","rel":"","context":"In "Trade"","block_context":{"text":"Trade","link":"https:\/\/enterpriseam.com\/egypt\/category\/trade\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/4\/950.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":563123,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/20\/more-industries-qualify-for-export-subsidies-under-new-program\/","url_meta":{"origin":664650,"position":2},"title":"More industries qualify for export subsidies under new program","author":"enterpriseam admin","date":"20 June 2021","format":false,"excerpt":"We now have more details on the state\u2019s new export subsidy program: Exporters in the automotive, ceramics, pharma, electronics, and chemicals industries can now enrol in the export subsidy program for the first time, under a decision approved by the Export Subsidy Fund on Friday, the Trade Ministry announced. The\u2026","rel":"","context":"In "Trade"","block_context":{"text":"Trade","link":"https:\/\/enterpriseam.com\/egypt\/category\/trade\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/250.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":556558,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/10\/31\/fourth-phase-of-export-subsidy-payout-program-to-launch-in-november\/","url_meta":{"origin":664650,"position":3},"title":"Fourth phase of export subsidy payout program to launch in November","author":"enterpriseam admin","date":"31 October 2021","format":false,"excerpt":"The Finance Ministry will launch a fourth phase of its export subsidy program at the start of November, Finance Minister Mohamed Maait said in a statement on Thursday. The program allows exporters to receive overdue subsidies in a single payment rather than in installments over four to five years, in\u2026","rel":"","context":"In "SUBSIDIES"","block_context":{"text":"SUBSIDIES","link":"https:\/\/enterpriseam.com\/egypt\/category\/subsidies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/10\/325.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":572741,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/07\/07\/egypt-begins-reviewing-eligibility-criteria-for-export-subsidy-program\/","url_meta":{"origin":664650,"position":4},"title":"Egypt begins reviewing eligibility criteria for export subsidy program","author":"enterpriseam admin","date":"7 July 2020","format":false,"excerpt":"The Trade Ministry has started a review of its export subsidy program and could widen the list of goods eligible for state support, Hapi Journal reports, quoting unnamed exporters. The ministry is in talks with representatives from the building materials, construction, and chemicals and fertilizers industries to agree on which\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":542675,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/11\/govt-wants-to-nearly-double-annual-exports-by-2025\/","url_meta":{"origin":664650,"position":5},"title":"Gov\u2019t wants to nearly double annual exports by 2025","author":"enterpriseam admin","date":"11 January 2022","format":false,"excerpt":"Egypt aims to increase export revenues to USD 60 bn a year by the middle of the decade as part of plans to eventually reach USD 100 bn a year, Trade Minister Nevine Gamea said in a phone-in with Al Arabiya (watch, runtime: 7:37).This would nearly double the record USD\u2026","rel":"","context":"In "Trade"","block_context":{"text":"Trade","link":"https:\/\/enterpriseam.com\/egypt\/category\/trade\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/1\/119.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/664650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=664650"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/664650\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/664640"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/664651"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=664650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=664650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=664650"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=664650"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=664650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}