Investment and Foreign Trade Minister Hassan El-Khatib, along with Finance Minister Ahmed Kouchouk, has announced the full details of Egypt's new export subsidy rebate programme for the fiscal year 2025/2026. The ministers emphasized the government's commitment to building a modern and responsive support mechanism, aligned with Egypt's ambitious export growth objectives. The design of the new scheme drew upon international best practices, extensive public consultations, and a series of expert workshops. Export councils, industrial chambers, and stakeholders from across the economic spectrum were engaged through surveys and technical sessions to assess the performance of the current programme and gather proposals for improvement. This process informed the creation of an economic model to guide sectoral prioritization and fund allocation, in coordination with all relevant government entities. All export councils were actively involved in shaping the new framework. Their input was incorporated to address prior challenges, with funding tailored to each sector's unique priorities and characteristics. Intensive consultations were held with 13 export councils representing a wide range of industries—including chemicals and fertilizers, furniture, agriculture, textiles, pharmaceuticals, printing and packaging, home furnishings, ready-made garments, engineering, building materials and metals, food products, leather goods, and handicrafts. This next-generation export rebate programme stands out for its integrated approach. It situates export support within a broader national strategy aimed at improving the investment climate and enhancing overall economic competitiveness. The government has paired this programme with key policy reforms, such as a flexible exchange rate, targeted tax incentives, a reduction in non-tax financial burdens, accelerated customs procedures, and the adoption of 29 measures designed to streamline foreign trade. Finance Minister Kouchouk noted that bolstering exports is a central pillar of Egypt's fiscal strategy, particularly in sectors with high productivity and value-added potential. A total of EGP 45bn has been allocated to the new programme—representing a significant reaffirmation of the state's commitment to private sector collaboration. Between 2019 and 2024, the government disbursed EGP 70bn in export support to more than 2,800 companies. For the current fiscal year, support payments are being processed within a maximum of 90 days—marking a first for the programme. The upcoming 2025/2026 cycle will see the programme's budget nearly doubled to EGP 45bn, including EGP 38bn allocated directly to priority sectors and EGP 7bn designated as a flexible fund. The allocation model is based on four key indicators: added value (50%), export growth rate (30%), production capacity (10%), and employment levels (10%). The scheme introduces revised eligibility standards. Core benchmarks include total export volume and added value, while additional criteria relate to participation in international trade shows, penetration of strategic markets, logistics efficiency, branding, geographic incentives, environmental sustainability, and energy performance. The weight of each criterion can be adjusted based on sector-specific needs through a flexible evaluation mechanism. The flexible EGP 7bn component will be directed toward high-potential products and sectors—initially focusing on engineering and chemicals—based on economic complexity analysis. This fund will also be used to attract global manufacturers, support top-performing Egyptian exporters, and invest in enabling infrastructure for export-led growth. Crucially, the programme is designed to be inclusive of businesses of all sizes—large, medium, and small. It provides clearly defined eligibility criteria, guarantees fast-track reimbursements within 90 days, and ensures that payments are no longer subject to deductions for outstanding tax liabilities. For the current 2024/2025 rebate cycle, which had an approved budget of EGP 23bn, disbursements have been carried out in full alignment with the allocations determined by the Ministry of Finance. For the first time, all payments were made without retroactive deductions and within the committed 90-day window. As for the EGP 60bn in outstanding arrears related to shipments prior to July 2024, the Ministry of Finance has agreed on a settlement plan. Half of the amount—EGP 30bn—will be repaid in cash to all eligible exporters over a four-year period. The remaining EGP 30bn will be settled through a clearing mechanism, offsetting exporters' obligations to the Tax Authority, Customs Authority, utility providers (electricity and gas), and the Social Insurance Fund.
