Egypt launches EGP 30B initiative to bolster priority industrial sectors
Updated 12/30/2024 8:10:00 AM
Arab Finance: Egypt has launched the first phase of a new EGP 30 billion initiative aimed at revitalizing priority industrial sectors, as per a statement.
Announced during the 14th meeting of the Ministerial Group for Industrial Development, the initiative introduces financing facilities backed by the state treasury, which will subsidize interest rates, ensuring a capped rate of 15% over five years.
It will back firms operating in the pharma, food, engineering, chemicals, ready-made garments, spinning and weaving, mining, and building materials sectors.
Companies can access up to EGP 75 million, with related parties eligible for a combined ceiling of EGP 100 million.
Additional incentives encourage higher local value-added production, with interest rate reductions of up to 2% for pioneering new industrial activities previously unavailable in Egypt.
Compliance requirements include obtaining permits, completing construction, and providing valid tax invoices or documentary credits for machinery acquisitions.
Funds are strictly prohibited from being used to settle existing bank debts.
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