The initial phase of this initiative was officially unveiled during the fourteenth meeting of the Ministerial Group for Industrial Development and subsequently received approval from the Cabinet.
The initiative was announced by Lieutenant General Engineer
Kamel El-Wazir, Deputy Prime Minister for Industrial Development and Minister
of Industry and Transport, and Ahmed Kouchouk, Minister of Finance, to support
and assist producing companies in priority industrial sectors.
The initiative earmarks 30 billion Egyptian pounds in
financing facilities specifically for private sector entities. These funds are
intended for acquiring machinery, equipment, and establishing production lines.
Access to this funding is contingent upon obtaining the necessary building
permits, completing construction phases, and opening a letter of credit for
imported machinery and equipment, or presenting a tax invoice for locally
sourced purchases.
A key feature of the initiative is the provision of a
reduced interest rate of just 15% for investors, applicable for a period of
five years from the initiative's commencement. Furthermore, the plan includes
additional incentives designed to deepen domestic manufacturing and promote
localization. These incentives involve an extra interest rate reduction of up
to 2%, which can be granted based on increased local added value or engagement
in novel industrial activities with significant import volumes and no prior
local production.
Specific conditions for participation in the initiative have
been established. These include setting a ceiling on the support amount, defining
credit limits for each client based on their business size and relevant banking
regulations, and establishing a maximum duration for benefiting from the
initiative. Notably, priority will be given to enterprises located in regions
with the greatest developmental needs and higher employment rates.
The Ministry of Industry emphasized that the initiative's
focus on financing the acquisition of machinery, equipment, and production
lines is intended to encourage investors to establish projects within a range
of targeted industries. This will enable these industries to enhance their
production capabilities, modernize their technological infrastructure, and
ultimately improve the competitiveness of Egyptian products in both domestic
and international markets.
The Ministry further clarified that a specific set of
industrial activities across seven key sectors, identified as having
significant potential for maximizing added value through localization, will be
prioritized under this initiative.
The Ministry of Industry invited investors wishing to
benefit from this initiative to submit their applications to the main
headquarters of the General Authority for Industrial Development in the Fifth
Settlement and its branches in the governorates, provided that they meet a
number of required documents and data.
Notably, this initiative reflects the state's commitment to deepening local manufacturing to achieve self-sufficiency in key and strategic sectors and industries. The Ministry of Industry disclosed the adoption of performance indicators for annual, realistic evaluation to assess the realized benefits for the national economy and participating companies.