{"id":86778,"date":"2025-06-04T00:00:00","date_gmt":"2025-06-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2025\/06\/04\/egypt-doubles-upcoming-export-support-program-budget-lays-out-its-main-components\/"},"modified":"2025-06-04T00:00:00","modified_gmt":"2025-06-04T00:00:00","slug":"egypt-doubles-upcoming-export-support-program-budget-lays-out-its-main-components","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/06\/04\/egypt-doubles-upcoming-export-support-program-budget-lays-out-its-main-components\/","title":{"rendered":"Egypt doubles upcoming export support program budget, lays out its main components"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Egypt lays out main features of its export support program: <\/strong>Investment Minister Hassan El Khatib and Finance Minister Ahmed Kouchouk held a <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/permalink.php?story_fbid=pfbid038A8ffHupwfFfGCEtWDWREQTzwXiwpAXWMni9iLzMX6ZZirvUA9kcqm3HwXxS18W4l&id=61562245173260\" style=\"\" rel=\"noopener\">joint presser<\/a> to go through some of the main points of the new export support program that will begin with the start of the new fiscal year on 1 July. We put together the main points to keep you up to speed:<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#1- The program this time round will nearly double in size to EGP 45 bn<\/strong>, up from last year\u2019s <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/be05bb1e-d7c8-47e3-a127-b16841306df2\/how-the-madbouly-government-plans-to-boost-industry-in-fy-2024-25\" style=\"\" rel=\"noopener\">EGP 23 bn<\/a>, the ministers noted, confirming what <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/7baf248b-c4bd-45ef-b058-cecf7943a58d\/\" style=\"\" rel=\"noopener\">EnterpriseAM reported<\/a> a month ago. This doubling of the allocated budget is reflected in an increase in all basic ratios by 50% \u2014 a significant change of course from the current year\u2019s program that <a target=\"_blank\" rel=\"noopener\">slashed payout rates by up to 70%<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#2- The lion\u2019s share will go towards targeted sectors<\/strong>, accounting for EGP 38 bn of the EGP 45 bn total, while EGP 7 bn will be used as part of a flexible reserve. The flexible component will be used to give additional support on top to complex, high-potential products \u2014 especially in engineering and chemicals \u2014 attract global players, and improve export-related infrastructure.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#3- Engineering industries are getting EGP 7 bn of <\/strong><strong>the allocation<\/strong>, accounting for 18% of the program. Also among the recipients are the food industries with just under EGP 7 bn, agricultural produce with EGP 6.2 bn, the chemical industry with EGP 6.1, and ready-made garments with EGP 4.9 bn.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#4- Small and emerging companies will get 60% of the support<\/strong>, while those classes as major exporters will receive the remaining 40%, according to a set of <a target=\"_blank\" href=\"https:\/\/www.facebook.com\/permalink.php?story_fbid=pfbid0SpdExaeFokBWzWbSe6Ktb3ch5UQk3NeB1TJW9PTWuJu6zVuT7rNvpDTMt1WZCEs8l&id=61562245173260\" style=\"\" rel=\"noopener\">infographics<\/a> from the ministry.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#5- The program\u2019s allocation model weighs four factors<\/strong> \u2014 with 50% of the weight assessing value-added content, 30% for export growth, 10% for production capacity, and 10% for job creation. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#6- Those really pushing export rates will also be rewarded for their efforts<\/strong>, with a 9% bump for those increasing export rates 15-25% annually and a 15% increase for those exceeding the 25% y-o-y benchmark. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#7- Those who use a larger local component ratio will also get a boost<\/strong>, with the greater the sector\u2019s local component ratio, the larger its share will be of the support program, El Khatib told <a target=\"_blank\" href=\"https:\/\/www.alarabiya.net\/aswaq\/exclusive\/2025\/06\/03\/%D8%A7%D9%84%D8%AE%D8%B7%D9%8A%D8%A8-%D9%84%D9%84%D8%B9%D8%B1%D8%A8%D9%8A%D8%A9-%D8%A8%D8%B1%D9%86%D8%A7%D9%85%D8%AC-%D8%B1%D8%AF-%D8%A7%D9%84%D8%B5%D8%A7%D8%AF%D8%B1%D8%A7%D8%AA-%D8%A7%D9%84%D9%85%D8%B5%D8%B1%D9%8A-%D9%8A%D8%B9%D8%B8%D9%85-%D8%A7%D9%84%D8%B9%D8%A7%D8%A6%D8%AF-%D9%85%D9%86-%D9%83%D9%84-%D8%AC%D9%86%D9%8A%D9%87-%D9%8A-%D9%86%D9%81%D9%82-%D9%84%D8%AC%D8%B0%D8%A8-%D8%A7%D9%84%D8%AF%D9%88%D9%84%D8%A7%D8%B1%D8%A7%D8%AA\" style=\"\" rel=\"noopener\">Al Arabiya<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#8- Speedy disbursements will continue<\/strong>, with the government committing to a policy of paying receivables within 90 days without deductions for outstanding taxes \u2014 a first for the program.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#9- The government will settle EGP 60 bn of overdue subsidies dating back to before July 2024 over a <\/strong><strong>four-year period.<\/strong> Half \u2014 or EGP 30 bn \u2014 will be paid out in hardcash to exporters, while the rest will be cleared through offsets against taxes, customs dues, and utility bills.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#10- Exports opening up access to Africa and businesses in Upper Egypt will also be given <\/strong><strong>more support<\/strong>, with the increase in rates for both factors increasing from a 15% addition to a 25% addition in the new program.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#11- The new program will retain the requirement that exporters give up a percentage of <\/strong><strong>their USD proceeds <\/strong>\u2014 currently stands at 50% in this fiscal year\u2019s revamped program \u2014 El Khatib <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The program adopts a progressive incentive scheme, with the size of support to producers going up as they further accelerate their exports and local component ratio<\/p>\n","protected":false},"author":1,"featured_media":86779,"comment_status":"","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":[41],"tags":[49,284,32],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-86778","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trade","tag-egypt","tag-policy","tag-trade","wpautop","entry"],"acf":{"mongo_id":"d178ab3f-09bf-4c77-81c8-ec6de41ffad3","order":"5","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/5\/452.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Egypt 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