Egypt to reveal changes to Export Support Fund in coming days says Investment Minister

Cairo – September 10, 2024: Within the next 7-10 days, Egypt is set to announce significant amendments to the Export Support Fund, explained Hassan El Khatib, Minister of Investment and Foreign Trade on Monday at the inaugural conference of the Export Council for Food Industries.

According to El Khatib, the amendments are expected to address these issues and improve the efficiency and impact of the Export Support Fund, and aims to streamline the disbursement process of export support, ensuring that funds are allocated within a maximum of three months.

A key condition is that exporters must deposit their export proceeds into local banks, which will manage their foreign currency needs.

The foreign trade minister noted that President Abdel Fattah El-Sisi has expressed strong backing for the proposed amendments, depending on their potential to enhance Egypt’s export performance.  

El Khatib highlighted that delays in disbursing support and instances of the Fund exceeding its budgetary allocations have undermined its effectiveness.

He also criticized the high customs clearance fees on imports in Egypt, which can reach up to $270 per shipment, $43 in Morocco and $18 in India. He emphasized the urgent need for a comprehensive overhaul of Egypt's import, export, and trade legislation to improve the country's competitive standing.

During his speech at the conference, El Khatib shared that the food industry accounts for around 14 percent of the country’s total exports, emphasizing that boosting exports, particularly of goods, is central to the government’s strategy for achieving sustainable economic growth.

At the same conference, Yasser Sobhi, Deputy Minister of Finance for Financial Policies, emphasized that boosting exports is a top priority for the government, citing its role as a key driver for growth, job creation, and economic stability.

The economic ministries are working on solutions to the challenges facing industry and export sectors, aiming to foster a competitive environment that benefits both companies and the state economically, he explained.