The Egyptian government has recently announced an extension of its initiative to support financing facilities for productive sectors. The initiative aims to boost the economy by providing soft financing for agricultural and industrial production activities with an interest rate not exceeding 15%. Out of the total budget, 105 billion pounds will be designated for financing working capital, while 15 billion pounds will be allocated for the purchase of machinery, equipment, or production lines.
The Minister of Finance, Dr. Mohamed Maait, emphasized that the Ministry will share the financing burdens with investors to reduce production costs, stimulate exports, and sustain economic growth. He highlighted that the state treasury absorbs approximately 8 billion pounds annually in interest rate differences for beneficiaries of the initiative. In addition to this, the interest rate for existing financing and balances used in working capital has been maintained at 11%.
The maximum financing for a single company has been increased from 75 million pounds to 100 million pounds, and for multilateral entities from 112.5 million pounds to 130 million pounds. The initiative covers new and renewable energy activities, free zone factories, and agricultural cooperative societies, with prohibitions on using credit facilities to pay off debts owed to the banking sector.
Dr. Maait stressed that the initiative aligns with government policies aimed at empowering the private sector and increasing its contribution to economic and development activities. The goal is to enhance local production, boost exports, and improve the competitiveness of Egyptian products in global markets. The Minister highlighted Egypt’s strategic geographical location and advanced infrastructure as advantages in attracting investments and facilitating business expansion.
The meeting included prominent figures such as Eng. Ahmed Samir, Minister of Trade and Industry
