Egypt should invest $40-$50 bln to reach $140 bln in exports
ElKhatib stated that this will help localize the industrial sectors as targeted by the government, especially the supply and intermediate industries.
He added that investments in the food industry sector surpass EGP 500 billion with more than 7,500 official entities.
Additionally, these entities offer more than seven million job opportunities and contribute to Egyptian exports by around 14 percent.
“The food industry sector represents one of the key production and export sectors in the national economy,” ElKhatib clarified.
He also noted that promoting exports, especially commodity exports, is one of the most important pillars the government depends on in its policy for achieving exponential and sustainable economic growth.
Moreover, ElKhatib explained that the food industry is one of the main exporting sectors that achieved exponential growth during the past five years despite the economy's various challenges.
He added that achieving a breakthrough in Egyptian exports to reach $140 billion is closely tied to achieving a breakthrough in productive investments, especially in manufacturing industries, as the current productive capacities allow for achieving exports valued at $40-$50 billion.
“We will work on reviewing all the industry burdens to reduce them and simplify its procedures in a way that stimulates more investments and production,” stated ElKhatib.
Then, the document of Egypt’s investment and trade policy for the next 10 years will be announced, he revealed.
Exporters' support
The minister also declared that he requested President Abdel-Fattah El-Sisi to increase the funds of the export development fund.
Additionally, he said the ministry is preparing to announce some new adjustments to the export development fund in the next two weeks.
In August, Minister of Finance Ahmed Kouchouk announced disbursing EGP 1.9 billion in Exporters Support to 560 companies.
This makes the total number of companies benefiting from this phase 1,590, with a total value of EGP 13 billion in Exporters Support disbursed from June to August.
Moreover, the minister highlighted the high cost of releasing a single shipment from customs in Egypt which reaches $270, although it is $43 in Morocco and $18 in India.
He added that there should be a modification in legislation and laws related to imports, exports, and trade in Egypt, as the current situation poses a challenge for the country to reach an advanced level regarding the size of international trade and exports.
The capital gains tax
The minister also told Asharq Business that his ministry is reviewing the cancellation of the capital gains tax on stock market transactions and that a decision will be made in the next three weeks.
It is worth noting that the cabinet announced in May that Egypt decided to apply the capital gains tax on shares and stakes listed in the Egyptian Stock Exchange (EGX) starting from the March/April 2025 tax season.