Egypt Approves New Mechanism to Settle Exporters’ Dues

The Egyptian Cabinet has approved a new mechanism to settle outstanding dues owed to exporting companies through the Export Development Fund. This initiative aims to resolve approximately LE 60 billion in arrears, providing flexible options to meet the unique circumstances and needs of exporters. The first phase will settle between forty to fifty percent of the total owed amounts.

The decision reflects the government’s commitment to addressing these dues, following directives from President Abdel Fattah El-Sisi. It builds on five years of successful collaboration between the Ministry of Finance and the Ministry of Investment and Foreign Trade, represented by the Export Development Fund. Between 2019 and 2024, nearly LE 70 billion has been disbursed to benefit around 2,500 exporting companies.

Additionally, December saw updates to the export program, introducing revised percentages of foreign currency proceeds exporters are required to surrender. For instance, the engineering industries sector must now surrender a minimum of forty percent, while the agricultural products sector must surrender up to seventy percent. These changes aim to streamline processes and enhance support for Egypt’s exporters.