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Egypt continues economic reform with cabinet's approval of new measures

The Ministry of Finance will be responsible for managing the funds.

By: Mohamed Zain

Thu, Apr. 27, 2023

Egypt's export sector gets a boost as cabinet approves new measures - Press Photo

The Egyptian cabinet, led by Prime Minister Mostafa Madbouly, approved several decisions during its meeting on Tuesday, including the launch of the sixth stage of the Instant Payment Initiative to repay delayed export burdens, which are due to exporting companies that have fulfilled their requirements with the Export Development Fund until December 31, 2022.

The Ministry of Finance will be responsible for managing the funds, which will be limited to EGP 10 billion.

The launch of this stage comes as part of the state's efforts to support the export sector and work towards repaying various delayed burdens related to exports due to exporting companies. This move aims to encourage these companies to increase their exports and strengthen their role in achieving the desired goals of this vital sector.

Additionally, the cabinet approved a draft law amending some provisions of Law No. 152 of 2020 regarding the development of medium, small, and micro-sized enterprises.

The amendment included Article 62 of the aforementioned law, which now states that the financing contracts and guarantee contracts associated with them granted to projects by the Medium, Small, and Micro Enterprises Development Agency and other non-banking institutions will enjoy the same exemptions and benefits provided for in Articles 106 to 109 of the Central Bank of Egypt Law and the Banking System Law No. 194 of 2020.

These measures were taken in light of the President's directives to establish a comprehensive framework aimed at enhancing the role of the private sector in the Egyptian economy and driving the economic development process.

The Egyptian government has been taking significant steps towards economic reform and creating a more investor-friendly environment in recent years. These efforts have resulted in a steady improvement in the country's economic indicators, including an increase in foreign investment and GDP growth.

The approval of these measures to boost the export sector and support small and medium enterprises is expected to further strengthen Egypt's economic position and attract more investors to the country.