An employee counts money at an exchange office in downtown Cairo (Photo credit: Reuters/Amr Abdallah Dalsh)
CAIRO - 30 January 2023: Several initiatives to reimburse the export burdens due to exporters have been launched with the Export Development Fund since October 2019 with the disbursement of LE 42.5 billion to 2,500 companies as an export support, the Finance Minister announced.
Minister of Finance, Mohamed Maait, stated that these initiatives help provide the necessary cash liquidity to ensure the rotation of the economy and enable exporters to fulfill their obligations, which leads to maximizing the country's productive capabilities, expanding the export base, enhancing the competitive strength of Egyptian products in global markets, and realizing the dream of reaching “$100 billion in exports.”
Maait affirmed that Egypt enjoys a political will that stimulates investment, which made it more attractive to produce and re-export to various countries of the world, especially Africa, taking into account the strategic geographical location and development projects that provide distinct investment opportunities.
The Egyptian minister pointed out, in a statement, that his country has investment opportunities in promising sectors, including renewable energy, green hydrogen, and manufacturing industries, and is based on a strong and developed infrastructure, capable of absorbing investment expansions and productivity.
The minister said, at the annual conference for investors in the Middle East and North Africa, that the “golden license”, the “state ownership policy document” and the “government offerings” program are among the efforts made by the state to maximize private investments.
The state ownership policy document opens wide horizons for local and foreign private investments, as the state exits from 62 economic activities; in a way that contributes to achieving growth based on production and export, and provides various opportunities for the presence of the private sector in economic activities; which helps in increasing the proportion of its economic contribution to the gross domestic product, and the investments implemented, according to the Minister.
“Despite the severity of the repercussions of the global economic crises; We are continuing to maintain the stability of tax policies, in a way that stimulates investment,” he stated, announcing the launch of the Egyptian tax policy document for the next five years during the coming period.
The minister added that the treasury bearsLE 4.5 billion pounds, the value of the entire tax due on built-up properties used in the practice of industrial activities, for a period of three years, starting from January 2022, adding that the value-added tax law includes a reduction in the tax rate on machinery and equipment used in the production of a good or the performance of a service, and that some goods and services are subject to tax at a “zero” rate.
He pointed out that the recent amendments to the customs tariff include reducing the “import tax” on more than 150 items of production requirements and inputs to stimulate the national industry.
Maait said that the state’s general treasury bears LE 10 billion in the interest rate difference in the initiative to support the productive sectors “industry and agriculture” to allow financing of LE 150 billion at 11 percent interest, noting that there is an annual subsidy of LE 6 billion to support reducing the electricity price for the industrial sector.