Egypt extends EGP 90b financing initiative to support industry, agriculture, renewables

Egypt will extend its initiative to support industrial, agricultural and renewable energy sectors through 90 billion Egyptian pounds ($1.9 billion) in low-interest financing this fiscal year, the government said in a joint statement on Wednesday.

Deputy Prime Minister for Industrial Development and Minister of Industry and Transport Kamel El-Wazir and Finance Minister Ahmed Kouchouk said the initiative aims to spur private-sector investment and local production by offering loans at interest rates capped at 15 per cent.

Of the total funding, 80 billion pounds will go toward working capital, while 10 billion pounds will be allocated for machinery and equipment purchases, the statement said.

The finance ministry added that the state treasury will cover 8 billion pounds in interest rate differentials this fiscal year to help ease financing costs for manufacturers, farmers, and renewable energy producers. The amount remains unchanged from last year, after plans to cut it by 20 per cent were shelved to provide additional support amid tight credit conditions.

The ministers said the government is working to expand industrial capacity, boost exports, and create new jobs, while reinforcing the private sector’s role as the main driver of economic growth.

They added that Egypt remains committed to building a more competitive investment climate and sustaining high growth led by production and exports.

Attribution: Amwal Al Ghad English