Egypt exports hit record $40 bln in 2024
These remarks came during a meeting with the heads and members of the Egyptian export councils to discuss key aspects of the new export subsidy programme.
In 2019, the Ministry of Finance launched the Immediate Cash Payment initiative (also known as the export arrears initiative) to boost exports and increase annual growth by 15 percent, enhancing Egypt’s global competitiveness.
Since its inception until October 2024, a total of EGP 66.9 billion has been allocated to support exporters, Minister of Finance Ahmed Kouchouk announced.
"EGP 23 billion have been allocated in the current fiscal year's budget to support exports and encourage investors to expand their export activities, as we aim to support the export burdens of exporting companies," Kouchouk stated in August.
Notably, the Central Agency for Public Mobilization and Statistics (CAPMAS) announced in December that the value of Egyptian exports increased by 10.2 percent, reaching $3.46 billion in September, up from $3.1 billion in the same month of 2023.
ElKhatib highlighted that the newly introduced export subsidy programme supports the national industry and enhances Egyptian exports to global markets.
He stressed the importance of aligning the programme’s objectives with the government’s strategic goals for boosting exports, which include increasing exports to $145 billion by 2030.
In December, Prime Minister Mostafa Madbouly revealed that the government is working to finalize the new export subsidy programme within the first quarter of 2025.
The programme will include an assessment of the necessary budget allocation for the upcoming fiscal year to ensure timely financial support for exporters.
Madbouly also announced that the export subsidy arrears have been fully settled until January 2023 and that the new programme will allocate approximately EGP 60 billion.
During the meeting, ElKhatib directed all export councils to evaluate underutilized production capacities within each industrial sector to maximize their potential.
He also urged identifying necessary investments across various sectors to help achieve the country's export growth targets.
The minister emphasized that the government implements initiatives that offer accessible financing programmes to support various productive sectors, including the industrial sector.
In December, Egypt allocated EGP 30 billion to finance the first phase of a new initiative to support companies in priority industrial sectors. This initiative is the third in a series set to operate simultaneously.
The first two initiatives include an ongoing initiative by the Central Bank of Egypt (CBE) to finance the industrial sector, specifically for purchasing equipment and machinery. The second initiative, currently under review by the CBE, involves establishing a fund with financial contributions from banks and financiers to support struggling factories.
ElKhatib further noted that, in the coming period, studies and research conducted by the government to boost Egyptian exports to international markets will be compiled and reviewed for incorporation into the new export subsidy programme.