Egypt has unveiled Wednesday a new 3-year export subsidy rebate programme valued at 45 billion Egyptian pounds, aimed at driving sustainable export growth and enhancing competitiveness across strategic sectors. Covering fiscal years 2025/2026 to 2027/2028, the initiative replaces the current framework with a more targeted, sector-specific structure. Of the total allocation, 38 billion pounds will be directed to priority sectors, while 7 billion pounds will serve as a flexible fund to address emerging strategic needs. Minister of Investment and Foreign Trade Hassan El-Khatib presented the programme during a Cabinet meeting chaired by Prime Minister Moustafa Madbouly. Sector-Based Customisation Driven by Stakeholder Input According to Minister El-Khatib, the programme was formulated through close coordination with Egypt's export councils, broad public consultations, expert workshops, and benchmarking against successful international models. Also, a survey of 500 exporting companies and consultations with 13 export councils helped identify sector-specific challenges and expectations. Key industries expected to benefit include chemicals, engineering, food, garments, furniture, and pharmaceuticals. Notably, disbursements will now be aligned with the actual needs of each export council, replacing the previous unified mechanism. Support Aligned with Economic Complexity For the first time, the rebate system will prioritise activities and products based on their economic complexity, to increase the value added of Egyptian exports. The engineering and chemical sectors will be the initial focus under this strategic shift. Faster Disbursements, Enhanced Settlement Mechanisms Minister El-Khatib also announced significant improvements to payment mechanisms. Export dues will now be disbursed within 90 days, and rebates will be paid in full, without deducting outstanding tax liabilities. As for arrears predating July 2024, 50 per cent will be settled in cash over four years, while the remaining 50 per cent will be cleared through offsetting exporters' dues against their past and future liabilities. Continuity, Compliance in Current Programme Regarding the 2024/2025 export support programme, the minister confirmed that it adheres to the Ministry of Finance's approved budget, raises the minimum local content requirement in eligible exports to 35 per cent, and will not be applied retroactively under the new system. A Broader Policy Package to Boost Export Competitiveness Minister El-Khatib emphasised that the new rebate programme forms part of a broader policy framework aimed at improving Egypt's investment climate and export competitiveness. This includes supportive monetary policies, a flexible exchange rate, tax relief measures, reduced non-tax financial burdens, streamlined customs systems, and improved trade procedures. Strategic Reform towards Sustainable Export Growth Moreover, Minister El-Khatib highlighted that the programme marks a strategic reform in Egypt's approach to export support. Through tailored allocations and sector-specific planning, the initiative seeks to foster a more dynamic, resilient, and sustainable export environment. Attribution: Amwal Al Ghad English Subediting: Y.Yasser
