The Egyptian government has approved a continuation of the initiative to provide financing facilities for productive sectors in the economy, with 120 billion pounds set aside for soft financing. Dr. Mohamed Maait, Minister of Finance, made this announcement during a meeting with industrialists, investors, and exporters.
Out of the total funding, 105 billion pounds will be allocated for working capital, while 15 billion pounds will be dedicated to purchasing machinery and equipment or production lines. The Ministry of Finance will share financing burdens with investors to reduce production costs and stimulate exports. The state’s public treasury is expected to bear around 8 billion pounds in interest rate differences annually for the beneficiaries of this initiative.
The interest rate for current financing and working capital balances will be maintained at 11%, in line with actual medium-term financing contracts and credit facilities. Additionally, the maximum financing for a single company has been increased, providing more support to businesses in various sectors, including new and renewable energy activities, free zone factories, and agricultural cooperative societies. This government initiative aims to boost local production, maximize exports, and enhance the competitiveness of Egyptian products in global markets.
The Minister emphasized that this initiative aligns with government policies aimed at empowering the private sector and increasing its contribution to economic development by leveraging the state’s resources, strategic geographical location
