Egypt’s Deputy Prime Minister for Industrial Development, Minister of Industry and Transport, Kamel El-Wazir, and Minister of Finance, Ahmed Kouchouk, announced the launch of the first phase of a new initiative designed to support companies in priority industrial sectors. The initiative provides EGP 30 billion in financing facilities for private sector companies to purchase machinery, equipment, and production lines, aiming to boost productivity and economic growth.

The initiative focuses on seven key industrial sectors: pharmaceuticals, food industries, engineering, chemicals, textiles and garments, mining, and building materials. Particular attention is given to establishments located in underdeveloped regions with high employment needs, such as Upper Egypt, border governorates, South Giza, and the Suez Canal region, including Port Said, Ismailia, and Suez. Companies benefiting from this initiative will enjoy a subsidized interest rate of 15% for a period of five years, with a maximum financing limit of EGP 75 million per client and EGP 100 million for related parties.

Incentives within the initiative include further reductions in interest rates for companies that increase their local value addition. Businesses can receive a one percent reduction for achieving a 7% to 10% increase in local value addition compared to the previous fiscal year, a 1.5% reduction for exceeding 10%, and a 2% reduction for introducing new industrial activities that are not yet produced locally but have high import volumes.

To qualify for the financing, companies must obtain construction licenses, complete their construction projects, and provide either letters of credit for imported machinery or tax invoices for locally purchased equipment. The initiative explicitly prohibits using these funds to settle existing debts with banks. Its success will be assessed based on increases in production, local value addition, company revenues, and the introduction of new industries.

Complementing this initiative, the Ministry of Petroleum and Mineral Resources announced additional incentives to assist industrial investors in resolving gas-related debts. These include interest-free repayment options for overdue gas bills and the possibility of spreading new debts over a ten-year period. Private companies generating electricity will also benefit from gas prices aligned with those applied to government facilities, ensuring cost stability.

This initiative is part of a broader strategy to support Egypt’s industrial sector. The Central Bank’s existing program for financing industrial equipment remains active, while another fund to assist struggling factories is currently under development. Furthermore, the meeting highlighted plans to optimize the use of Egypt’s phosphate reserves by promoting value-added manufacturing, in compliance with European Union regulations, and transitioning to renewable energy sources.

In addition, the Ministry of Public Enterprises outlined a roadmap for advancing Egypt’s aluminum industry. The plan includes building a new aluminum factory with a production capacity of 200,000 tons annually, establishing solar power and recycling facilities, and enhancing production efficiency to reduce reliance on imports while boosting exports.

El-Wazir reaffirmed the government’s commitment to resolving industrial challenges and fostering a competitive, sustainable industrial sector. Over the past six months, significant progress has been made in addressing regulatory and financial obstacles, signaling a new era of industrial growth in Egypt.