Egypt Introduces a New Mechanism to Clear Exporters’ Outstanding Dues

Egypt has announced a new plan to settle the remaining outstanding dues owed to exporters through the Export Development Fund for shipments up to June 30, 2024, totaling approximately LE 60 billion. The initiative was revealed by Minister of Finance Ahmed Kouchouk and Minister of Investments and Foreign Trade Hassan El-Khatib.

Under this mechanism, 50 percent of the outstanding dues will be disbursed in cash over four fiscal years, starting this year, with annual payments of EGP 8 billion. Notably, for the first time, exporters’ dues for the fiscal year 2024/2025 will be settled within the same year, with the first installment scheduled for release this month.

The remaining 50 percent of dues will be resolved through an offset mechanism, allowing exporters to clear their liabilities, including taxes, customs duties, and utility bills for electricity and gas.

This initiative reinforces the government’s ongoing support for the export sector by ensuring liquidity and boosting economic activity. From 2019 to 2024, Egypt has already paid LE 70 billion in outstanding dues to more than 2,800 exporting companies, demonstrating its commitment to strengthening the export industry.