Egypt’s Finance Ministry to release new export support package tomorrow

The Egyptian Ministry of Finance announced a new phase of the Export Support Initiative on Wednesday, a move aimed to help exporters navigate both internal and external challenges.

The new package includes the disbursement of 5 billion Egyptian pounds on Thursday, June 6th, to 360 exporting companies enrolled in the Immediate Cash Settlement Plan (ICSP). Further disbursements are planned for June 27th and August 8th, 2024, bringing the total expected support to nearly 10 billion pounds.

This initiative builds on the government’s ongoing commitment to supporting the export sector. Over the past four years, 55 billion pounds have been allocated to exporters. With the disbursement of the ICSP’s seventh phase, this figure is expected to reach 70 billion pounds. The upcoming fiscal year’s budget dedicates 23 billion pounds specifically to address export-related challenges, highlighting the government’s focus on stimulating economic activity.

Nevine Mansour, Advisor to the Finance Minister, emphasised the collaborative efforts with the banking sector and the Ministry of Trade and Industry. This collaboration has been instrumental in the initiative’s success. Mansour also noted the strong interest from exporting companies in the programme’s seventh phase.

The seventh phase of the ICSP maintains previous discount rates: 15 per cent for shipments up to June 30, 2021, and 8 per cent for shipments between July 1, 2021, and June 30, 2022. No discount applies to shipments after June 30, 2022.

Prominent Egyptian banks, including the National Bank of Egypt (NBE), Banque Misr, Banque du Caire, and the Export Development Bank of Egypt, will facilitate export support through the ICSP. These combined efforts aim to strengthen the resilience and competitiveness of Egypt’s export sector amidst a changing economic landscape.